The sandwich generation could soon be further squeezed. Already caught between spiraling college tuition and care for aging family members, baby boomers could also become liable for their parents’ bills. This on top of worries concerning their own retirement. In approximately 30 states, “filial support” statutes make adult children legally responsible — on paper — for their parents’ expenses. In recent times, most jurisdictions have chosen not to enforce such laws, but that could change. A Pennsylvania court recently found an elderly woman’s son liable for her $93,000 nursing-home bill. But states are observing the Pennsylvania scenario with interest. While…
Poor results in the long-term care insurance sector have led many providers to exit the market, leaving its future uncertain, Moody’s Investors Service says in a new report. The report, “Long-Term Care Insurance: Sector Profile,” says that despite the need for non-medical coverage by an aging population, the product’s future is also in question because of persistent losses and a challenging operating environment. “Key credit considerations for the sector are the relative newness of long-term care insurance and the long-tailed and complex product structure, which make it difficult to price the product profitably and to reserve for,” says Laura Bazer,…
A decade ago, at least one part of that transition wasn't so tough. When the for-sale sign went up, an eager buyer was likely to show up with a good offer. But today, families are facing a much more difficult real estate environment. Home Prices Collapse … Home prices are down more than 30 percent from their peak in 2006, according to the S&P/Case-Shiller 20-City Composite Home Price Index. Over the past five years, home prices have plunged by roughly a third. During that same period, the annual cost of residing in an assisted-living facility has increased 5.7 percent per…
The average monthly cost for assisted living has risen 5%, which might drive some seniors to consider other, more economical options when it comes to long-term care, according to the 2012 American Association for Long-Term Care Insurance (AALTCI) Sourcebook. Assisted living costs an average of $3,350, reports the association, but despite the increase, more people have been turning to assisted living or home healthcare options rather than nursing home care. Less than a third (31%) of newly opened long-term care insurance claims are for nursing home care, according to AALTCI data. However, many seniors are realizing that long-term care insurance can…
The considerations are much different for an older couple with adult children and retirement plans than for a young couple just starting out. Before deciding whether to get married or just live together, you need to look at your estate plan, your Social Security benefits, and your potential long-term care needs, among other things. Whatever you decide to do, you may want to consult a lawyer to make sure your wishes will be carried out. Here are some things to think about: Estate Planning. Getting married can have a big effect on your estate plan. Even if you don't include…
Americans are living longer, so debilitating diseases such as Parkinson’s and Alzheimer’s are rising, making long-term care vital. Long-term care insurance offered those facing retirement a new option to offset the cost of assistance that many require later in life. From daily tasks such as cooking and cleaning to the all-encompassing care provided in nursing homes or assisted-living facilities, long-term care insurance covers many of the expenses that health insurance, Medicare or Medicaid generally don’t. According to the Centers for Medicare and Medicaid Services, about 60 percent of individuals over age 65 will require at least some type of long-term…
A Wall Street Journal article asked some tough questions about the availability of Medicaid nationwide. We realize that many local residents are understandably concerned about the program in our state–it is an essential lifeline for many seniors. The latest WSJ article suggest that some states are making it harder for individuals to receive Medicaid help to pay for long-term care costs–however, the "crack down" on Medicaid expenditures is advancing very differently in certain states. According to the Kaiser Family Foundation, Medicaid now accounts for about 40% of long-term care spending nationwide. The program is a joint state and federal effort…
A Wall Street Journal article this weekend asked some tough questions about the availability of Medicaid nationwide. At the Elder Law office we realize that many local residents are understandably concerned about the program in our state–it is an essential lifeline for many seniors. The latest WSJ article suggest that some states are making it harder for individuals to receive Medicaid help to pay for long-term care costs–however, the "crack down" on Medicaid expenditures is advancing very differently in certain states. According to the Kaiser Family Foundation, Medicaid now accounts for about 40% of long-term care spending nationwide. The program…
Alzheimer’s is a disease that affects everybody it touches—husbands, wives, children and grandchildren—they all bear witness to their loved one’s slow demise. Sadly, emotional stress is not the only stress that accompanies Alzheimer’s disease; those loved ones serving as caretakers may carry a huge amount of financial stress as well. The cost of caring for an Alzheimer’s patient can run anywhere from $64 a day to over a $100,000 a year, and because Alzheimer’s disease can be such a long-lasting disease (a person can suffer from Alzheimer’s for up to 20 years) the costs of care can end up being…
CBS reports, America, we have a problem that needs your attention: Millions of overweight, out-of-shape, diabetic, heart-clogged boomers are lurching toward their retirement years, thinking they're entitled to trillions of dollars of medical care in their retirement years from a nearly bankrupt Medicare system. The simple truth is that we — individuals, employers, and our government — just won't be able to afford the looming avalanche of bills for the medical and long-term care these boomers will need in the years to come. Noted author and gerontologist Ken Dychtwald, Ph.D., recently summarized the financial challenges we face in his excellent…
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