[A] big financial concern for many families is how to pay for the care their loved ones may need. The majority of the services for seniors in this country are paid for privately, not by the government or health insurance. This can be a shocking realization for families facing eldercare needs. Long-term care insurance, for those who have it, is very helpful in paying for care either at home or in a facility. For low-income seniors, most states also have some subsidized programs, but resources are limited and waiting lists can be long.
Medicare and other types of health insurance do not cover long-term care. They primarily cover only short term, acute, skilled care in a hospital or nursing home. Although limited, short-term care at home may be covered as well. Medicaid or Medical Assistance for long-term care mainly covers nursing homes, and requires proof of medical and financial need. Medicaid Waivers in some states can also cover home care and assisted living. When one spouse goes to a nursing home under Medicaid, there are legal provisions to protect the “community spouse” from impoverishment. Particularly where a couple with some financial means is involved, consulting an Elderlaw attorney can help with planning to maximize eligibility for government assistance.
To plan for financial management for your parents, gather information before it is needed. Become familiar with your loved ones’ income, assets, investments, and usual expenses. Locate important documents and records. Review their bank accounts, and if possible, secure your access to their bank accounts and safe deposit boxes. Many banks and brokerage firms have their own specific Powers of Attorney for your parents to complete.
Furthermore, it is wise to periodically monitor checkbooks, bills, and bank statements. You can arrange for direct deposit and payment of regular bills, and monitor them on-line. If moving your parents to a new location, be sure to complete a change of address for Social Security, Medicare, pensions, and other benefits. If changing states, you should check the new state’s guidelines for Medicaid. You may need to apply to be Representative Payee for your loved ones’ Social Security Benefits or other benefits, if they become unable to manage them alone.
You will also want to review your parents’ health insurance, to ensure they have enrolled in the best coverage, including Medicare D for prescription drug coverage, and that claims are being processed correctly. Lower income seniors are eligible for help with Medicare premiums.