Retirement News : Seniors : Misconceptions Abound in Long-Term Health Care, Medicaid

Misconceptions Abound in Long-Term Health Care, Medicaid

Date Added: 02-08-2005

Lawyers who specialize in elder care say that misconceptions run rampant surrounding legal issues of long-term health care, Medicaid and even long-term healthcare insurance.

"One of the biggest misconceptions out there is that if you don't give away your assets three years prior to becoming ill and needing nursing home care, that you will lose all of your assets or not qualify," said Frances Pantaleo, an attorney with Walsh & Amicucci in Purchase, who has been involved in eldercare law for almost 20 years.

There are exceptions to Medicaid eligibility rules that require that you be almost destitute before becoming eligible. Medicaid is the federal program which pays for long-term nursing care. For example, you could have a spouse who is well and living in the home, you could be living in your home with another relative who has been taking care of you, or you could have a disabled child who has been living with you, and still be eligible, Pantaleo said.

The rules and intricacies of qualifying for Medicaid are quite complex and there are ways to protect one's assets from being drained, if you protect yourself prior to becoming catastrophically ill, Pantaleo said.

UNDERSTANDING PROGRAMS

Another big misconception on long-term health care is the confusion over the difference between a health-care proxy and a living will, ever since all of the publicity surrounding the Terri Schiavo case, said Bernard Krooks, an attorney with Littman Krooks, one of the largest eldercare practices in New York and Westchester County. Krooks is also president of the National Academy for Elder Law Attorneys.

"If you are sick and are unable to speak and cannot make medical decisions on your behalf, a health-care proxy establishes who you legally appoint to make those decisions for you. A living will just describes what your wishes are for your possible care," Krooks said.

Krooks said that both a health-care proxy and a financial power of attorney are crucial and needed if someone becomes very ill.

"And we know that even though it may not happen, you should have both done before you need them, as the case with Terri Sciavo brought that message home, since one day she was a healthy 25-year- old and the next day she wasn't," Krooks said.

"The other biggest misconception is that there are many millionaires out there taking advantage of the system and now on Medicaid. Nothing could be further from the truth," Pantaleo, said.

Caught smack in the middle of this is the middle-class family, who owns a house and has savings, meant to last for their retirement. Once a person in that family becomes disabled through diseases such as Alzheimer's or a stroke, they will face a major eldercare financial crisis.

With nursing home costs typically running $12,000 to $13,000 a month or up to $150,000 a year in Westchester County, Krooks said, many middle-class people can run out of all of their savings and assets very quickly, paying for nursing home care with a combination of Medicare, health insurance and private savings.

The typical middle-class person has seen his home that he bought in the 1960s in Westchester for $40,000 appreciate tremendously so now it is worth $400,000 and up and he or she may have a modest retirement plan or pension, Krooks said.

"They do not have tremendous savings for catastrophic care and could lose all of their assets in a short time, with the price of nursing home costs. People usually come here after the crisis has happened. They could prevent this if they planned in advance for long-term health care," Krooks said.

With Medicaid, officials will look back in a person's financial history from three to five years to determine if assets were illegally sheltered to qualify a person for coverage. Moving assets through legal means is permitted, but even if they are legal, it may delay the time when medical benefits can be applied to nursing home care, according to ElderCare Online.

The best defense is to plan ahead, yet many families put off any discussion, until they are at the nursing home door, Krooks said.

"The truth is this issue is not on the radar screen of a healthy 30-, 40-, 50-year-old, who is busy working and raising children. Plus, we all think that Alzheimer's or a stroke, will not happen to us," Krooks said.

For More Information:

http://www.rednova.com/news/health/192813/misconceptions_abound_in_longterm_health_care_medicaid/