5 Minute ReadDo you or someone you love need long-term care? If so, understanding the basics of Long-term Care Medicaid can be an invaluable resource. Long-term Care Medicaid helps Seniors and Disabled Adults pay for the high costs of ongoing medical and personal care services. In this blog post, Stacy Osborne, CEO of Beneficent, will discuss what Long-term Care Medicaid is and how it can help those in need of ongoing medical and personal support. What is Long-term Care Medicaid? Since April 1999, Beneficent has been privileged to successfully assist more than 3000 families and individuals through the long-term care Medicaid and VA applications while preserving assets.Long-term Care Medicaid is a financial assistance program that helps pay for medically necessary long-term care services. This includes nursing home care, home health services, assisted living facility services, adult day health services, hospice care, respite care, and more. It is available to people who are aged 65 or older; blind; disabled (as defined by the Social Security Administration); or medically needy (those who have high medical expenses which exceed their income). Eligibility for Long-term Care Medicaid in ColoradoIn order to qualify for coverage through a states Long-term Care Medicaid program, individuals must meet certain criteria regarding their residence status and citizenship/immigration status as well as a financial assessment. The financial assessment looks at things like income level and assets owned by the applicant. Since April 1999, Beneficent has been privileged to successfully assist more than 3000 families and individuals through the long-term care Medicaid and VA applications while preserving assets.Benefits of Applying for Long-term Care Medicaid Though it can take some time to navigate through all of the paperwork involved in applying for coverage under one of these programsit could end up saving money in the long run while providing much needed relief when it comes to accessing necessary healthcare services. Applying for Long-term Care Medicaid can provide numerous benefits to those needing long-term care assistance. Not only can it help cover the cost of needed medical aid such as nursing home stays or home health aides; it could also cover the cost of personal aids such as assistive devices like wheelchairs or walkers; transportation assistance; meal delivery programs; homemaking and chore services; adult daycare centers; medication management programs; personal emergency response systems; occupational therapy; physical therapy among other things that many seniors need assistance with on a daily basis. Overall, applying for Long-term Care Medicaid can be an invaluable resource if you or someone you love needs ongoing medical or personal support due to age, disability or any other qualifying factor that might make them eligible for coverage under a states specific program guidelines. Though it can take some time to navigate through all of the paperwork involved in applying for coverage under one of these programsit could end up saving money in the long run while providing much needed relief when it comes to accessing necessary healthcare services. Ultimately this could lead to better quality of life down the roadmaking it worth every step taken along the way!Skip the headache of trying to apply for Long-term Care Medicaid on your own and call 719.645.8350 Beneficent to schedule a FREE initial consultation. We work with residents across the state of Colorado. Stacy OsborneBeneficent CEO719.645.8350
Are you a taxpayer who has purchased long-term care insurance (LTCI)? Take note of your policy details and your premium amount, as you may be able to deduct the cost or at least part of it from your 2023 income.If your total eligible medical expenses (including your LTCI policy premium) for the year exceed 7.5 percent of your adjusted gross income, you may be able to take the amount of your LTCI policy premium as a deduction on your federal income tax return.However, note that only certain LTCI policies qualify.What Is Long-Term Care Insurance, and Do I Need It?Long-term care insurance helps you cover costs for services you'll likely need as you grow older, such as nursing home care or home health care.According to LongTermCare.gov, U.S. seniors aged 65 today face a nearly 70 percent chance of requiring some form of long-term care later in life. In fact, almost a fifth of them will need it for more than five years.Policies for this type of insurance can vary dramatically. Most will provide you with between $2,000 and $10,000 in funds each month, with premiums costing up to $5,000 a year. The younger you are when you purchase LTCI, the less pricey your annual premiums will generally be.Keep in mind, too, that the average prices for long-term care have skyrocketed over time. For example, a private room in a nursing home will currently cost you more than $9,000 a month on average.Unless you have very significant wealth, paying for LTCI may be well worth the cost, given how quickly long-term care can drain your retirement savings.Can I Deduct My Long-Term Care Insurance Premium?As mentioned above, only certain LTCI policies are tax-deductible. If your LTCI policy is considered qualified for tax deductibility, your total eligible medical expenses (including your LTCI policy premium) for the year also need to exceed 7.5 percent of your adjusted gross income in order for you to be able to deduct your premium.In addition, you're limited in how large a premium you can deduct. Read more about these caveats below:1. Tax-Qualified Policies To qualify for tax deductibility, your LTCI policy is required to meet specific rules, as outlined by the National Association of Insurance Commissioners (NAIC).If you purchased your policy before January 1, 1997, it's likely qualified. (Double-check with your insurance broker or their states insurance commission.)Policies purchased on or after January 1, 1997, have to meet a number of federal standards. Learn more about these standards on Page 9 of the NAICs Shoppers Guide to Long-Term Care Insurance, available in PDF format.2. Deduction Limits The limit on your deduction depends on your age at years end. The IRS annually issues adjustments to these limits; it increased the 2023 tax-deductible limits by about 6 percent since 2022.Note that if your annual premium amount for 2023 exceeds the limit provided in the table that follows, it won't be considered a medical expense:Attained age before the close of the taxable yearMaximum deductionAge 40 or under$480 (up from $450)Age 41 to 50$890 (up from $850)Age 51 to 60$1,790 (up from $1,690)Age 61 to 70$4,770 (up from $4,510)Age 71 and over$5,960 (up from $5,640) 3. Other CaveatsIf you're self-employed, you can take the amount of the policy premium as a deduction if you made a net profit. Your medical expenses don't necessarily need to have exceeded 7.5 percent of your income.Most hybrid life insurance policies are typically ineligible for tax deductions.Note as well that benefits from per diem or indemnity policies, which pay a predetermined amount each day, aren't included in income except amounts that exceed the beneficiarys total qualified long-term care expenses or $420 per day (for 2023), whichever is greater.For further details on these and other inflation adjustments, access the complete PDF from the IRS website.Additional ResourcesTo get an idea of how much long-term care may cost you, visit Genworths Cost of Care online tool to calculate the cost of care where you live.Be sure to seek out information from a professional when it comes to evaluating your long-term care insurance needs as well as protecting your loved ones assets in the event that you do require long-term care. Find a qualified elder attorney near you.
According to a recent national study, nearly a quarter of Americans aged 50 and older say they or a loved one needed long-term care in 2022. The findings further suggest that seniors and their caregivers could benefit from more consumer-friendly information and guidance about long-term care services, a need researchers say will grow exponentially in the future.Finding Long-Term Care Causes Wide-Ranging EmotionsResults showed that people looking for long-term care experienced a range of emotional responses in searching for a provider:53 percent of respondents reported feeling anxious about the process 52 percent described feeling frustration23 percent said they were confident during the process of long-term care for themselves or their loved one23 percent of respondents felt at peace about the choice they made for long-term careOnly 14 percent of respondents reported feeling happyRespondents Want to Feel Prepared When Deciding on Long-Term CareResearchers found that respondents want advice for seeking long-term care when it comes to the following:92 percent wanted to know what types of long-term care services are available90 percent wanted more information about paying for long-term care90 percent said advice and support on long-term care would have been helpful to them88 percent needed help understanding whether their personal or health care needs require long-term care88 percent of those surveyed also said they needed help choosing a long-term care provider86 percent said having someone to listen to them when seeking long-term care services would have been important to them84 percent of respondents wanted help deciding whether to pursue in-home care or community-based services (i.e., nursing home care)Paying for Long-Term CareA large number of respondents reported needing more information about how to pay for long-term care.Of the people who were surveyed, 63 percent said it was extremely important to have additional details about the various types of care options available. Meanwhile, 69 percent said it was extremely important to have further details about the cost of care and their payment options.Who Participated in the Survey?The survey featured responses from a nationally representative sample of more than 1,000 participants with annual household incomes ranging from under $30,000 to more than $100,000. Responses were collected in November 2022.Respondents, all aged 50 and older, were 53 percent female and 47 percent male, and represented the following regions across the United States:South 38 percentWest 23 percentMidwest 21 percentNortheast 18 percentNORC at the University of Chicago conducted the survey, which was commissioned by think tank Nexus Insights.Can This Problem be Solved?In a separate Nexus Insights report from September 2022, experts called for the creation of information hubs where seniors and their caregivers can find the resources they need to answer their questions regarding long-term care.The report also outlined seven criteria defining these proposed navigational hubs:AccessibilityConsistency in services across the countryLocal focus with a deep understanding of each communitys programs and providersVisibility among its target usersFreedom from incentives that would promote specific service providersUnbiased adviceFull serviceTo learn more about long-term care services and options, find a qualified elder law attorney in your area.