September 2018
Is Medicaid Becoming the Long-Term Care Insurance for the Middle Class?
Mr. and Mrs. Smith have been
married for 50 years. About six years
ago, Mrs. Smith began showing signs of dementia. At first, Mr. Smith refused to
acknowledge that there was any problem, but their children and church family
finally convinced him to take her to a neurologist. Mrs. Smith was diagnosed
with dementia, and she was able to live at home with her husband as a primary
caregiver for the next 4 ½ years. Six
years after her first symptoms, Mrs. Smith is no longer able to walk, dress
herself, feed herself or use a toilet. She requires total assistance, and Mr. Smith
is no longer able to care for her on his own.
She spends most of the day in her bed, and her children want their dad
to get more help.
After reviewing all of their
options, it seems as if a nursing home is their only viable option. Assisted
living communities and personal care homes cannot offer her an apartment
because she can no longer walk or transport herself (a requirement set by the
state for all new admissions into personal care homes and assisted living
communities). At $20/hour, private duty home care is too expensive for the
amount of hours Mr. and Mrs. Smith need help. Spending that money on her care
would quickly deplete all of their assets, and Mrs. Smith could live another
3-5 years. This leaves nursing home care.
Sure, nursing homes cost $8,000/month, but Mr. Smith has been told that
his wife can get on Medicaid and that Medicaid can help pay for her nursing
home care.
Mr. Smith was shocked when
he was told that his wife could be eligible for Medicaid. Although they have
never been wealthy, Mr. and Mrs. Smith always worked decent paying jobs and
saved for retirement in their IRAs. They
have one car and home that they own outright that is worth about $200,000. Their savings total about $120,000, and their
IRAs combined total over $80,000. With
their IRA distributions, pensions and Social Security checks, they have about
$4,400/month in income ($3,000 for him, and $1,400 for her). Mr. Smith never
even considered Medicaid for them—he thought Medicaid was only for extremely
poor people.
Let’s
analyze the requirements for nursing home Medicaid in Georgia and the Smiths’
financial situation.
To get Medicaid: -The resident going into the
nursing home must have less than $2,250/month of income; Mrs.
Smith only makes $1,400.
-A married couple must have less than $125,600; Mr.
and Mrs. Smith have a $200,000 house, $120,000 in the bank, $80,000 in IRA, and
a car—this puts them with assets over $400,000.
Fortunately, the house, car, and IRAs are exempt for Medicaid
eligibility. This means they have $120,000 in assets and are eligible for
Medicaid.
For the Smiths, not only are
they eligible for Medicaid, but Mr. Smith will also be able to keep a portion
of Mrs. Smith’s income every month. Medicaid allows the spouse still living at
home to have up to $3,090 in income.
Since Mr. Smith’s income is $3,000, he can keep $90/month of Mrs.
Smith’s income (and then the rest of her income will go to the nursing home).
The Smiths were in a very
difficult situation, but their story is not uncommon. Many working class and middle class families
that never used public benefits in the past have to rely on these safety net
programs in order to pay for their long-term care needs. With costs easily
exceeding $70,000, it is no wonder that so many families are looking for help
anywhere they can. In many ways, Medicaid has become the long-term care
insurance policy for the working and middle class. We as a country have not
fully addressed the issue of how we should be paying for the long-term care
needs of our disabled and frail citizens.
And our legislators have condoned this approach by giving us rules to
protect well spouses and to help individuals qualify for benefits after
spending or transferring some of their
assets.
Hurley Elder Care Law has
been serving families for many years that are navigating the options for paying
for long-term care costs. Our initial
phone consultation is always complimentary, so please contact our office at
(404) 843-0121 or through our website.
Given that Medicaid is the long-term care
insurance for the working and middle class, maybe you should start the process
of planning for it today! | |
Family Business
We would like to introduce you to the newest Hurley member! Jennifer Ghorley is an attorney originally from Canton, GA. She received her undergraduate degree from the University of Alabama in Tuscaloosa and attended Faulkner University’s Thomas Goode Jones School of Law where she received her JD, as well as an LL.M. in Alternative Dispute Resolution (which is a Master of Laws). Jennifer practiced law at a small firm before joining Hurley. Jennifer was recently married and now lives in Canton with her husband, Graham, and their dogs. The couple enjoys traveling, cooking and entertaining family and friends.
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Upcoming Speaking Events and CEsContinuing Education (CE) *All CE topics are certified for case managers, nurses and social workers
The decision to transfer a family member to a nursing home can be a difficult one. It is the family’s responsibility to explore facilities and to make decisions about which facilities can best meet the patient’s financial, physical, and social needs, but health care providers also play a crucial role. Case managers and social workers must understand how to complete the DMA-6 and Level 1, how to navigate the options, and how to advise families on paying for nursing home care. *This CE is currently full but please feel free to join the waitlist.
5:00 PM- 7:00 PM, The Fountainview Center, 2631 North Druid Hills Road, Atlanta, GA 30329, RSVP: fountainviewce.eventbrite.com
Healthcare professionals are being challenged with meeting the needs of an older population that is living longer with more complex issues and fewer family supports than ever before. Do you ever feel overwhelmed/lost when dealing with this population? This seminar will offer guidance for professionals dealing with the new aging family. We will explore elder orphans, elderly immigrants, and blended families.
5:30 PM- 7:00 PM, Pebblebrook at Park Springs, 5610 New Bermuda Road, Stone Mountain, GA 30087, RSVP: pebblebrookparksprings.eventbrite.com Unique challenges exist at the intersection of ethical decision-making and geriatric care. Even though we have clear ethical principles, the messy realities of patients and families often leave professionals questioning the best course of action. Please join Danielle in a discussion of unique ethical dilemmas in geriatric care. With the use of case studies, we will explore issues related to client identification, capacity, confidentiality, undue influence, conflicts of interest, and informed consent. Each case is unique, and we look forward to your input.
What healthcare documents does everyone really need and how do they work? What are the repercussions of needing care and having no documents in place? What options do healthcare providers have when families need to take action? We will review the essential documents every adult needs including the General Durable Power of Attorney, The Georgia Advance Directive for Healthcare and various other documents that may be recommended. 4:00 PM- 6:30 PM, Emory Johns Creek Hospital, Classrooms A and B, Main Conference Room, 6325 Hospital Parkway, Johns Creek, GA 30097, RSVP: emoryjohnscreekce.eventbrite.com
Every 67 seconds someone in the U.S. develops Alzheimer’s, and one in three seniors will die with Alzheimer’s or another dementia. The purpose of this activity is to review the basics of Alzheimer’s disease and then analyze the financial impact of the disease to families and employers as well as those affected by it. Knowing the options available and planning for the unexpected loss in functional and cognitive capacity is the best way for healthcare professionals to advise their patients and families. 11:30 AM- 1:00 PM, Sunrise of Huntcliff Summit 1, Essex Ballroom on the 6th floor, 8592 Roswell Road, Sandy Springs, GA 30350, RSVP: huntcliffce.eventbrite.com
Georgia’s aging population is facing a crisis in long-term care. Costs are skyrocketing and most families can’t afford to spend over $100,000 a year for care. Healthcare professionals are on the front lines providing information and tools to help navigate this difficult time. This seminar offers practical information to healthcare providers detailing Georgia’s long-term care options. This seminar will outline strategies for accessing public benefits to pay for care including Georgia Nursing Home Medicaid and VA Aid and Attendance.
For more details and a complete list of upcoming events, please visit Hurley Elder Care Law Community Education.
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Recent Blogs
Is This Legal- Read about the legal and ethical implications of Medicaid planning.
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Miles P. Hurley, JD, CELA
Miles P. Hurley founded Hurley Elder Care Law in 2006 to provide legal assistance to the elderly population on issues relating to aging including retaining independence, quality of life and financial security. Mr. Hurley is one of eleven attorneys in the state of Georgia to receive the Elder Law Attorney Certification, and one of approximately 400 nationwide.
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Hurley Elder Care Law is dedicated to the process of long-term care and estate planning. Call us today for a free phone consultation with a client coordinator at (404) 843-0121.
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Hurley Elder Care Law 100 Galleria Pkwy, Suite 650 Atlanta, GA 30339 404-843-0121
Satellite Offices 2011 Commerce Dr. Suite 100, Peachtree City, GA 30269 225 Creekstone Ridge, Woodstock, GA 30188 6340 Sugarloaf Pkwy. Suite 200, Duluth, GA 30097
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