Medicaid…Did You Know?

Protecting Your Parents Assets From Nursing Home CostsNursing home care costs have been rising over time, with many older Americans who require long-term care unable to afford it.With proper planning, seniors may be able to rely on Medicaid to pay for this care and still retain some of their assets by exploring several different strategies.The aging U.S. population means that more people will likely need nursing home care in the coming decades. Meanwhile, the cost of nursing home care is increasing and expected to keep increasing.With the exorbitant cost of nursing home care, many families worry about depleting their loved ones life savings to pay for the care they need. Private health insurance does not cover nursing home care, and while long-term care insurance is available to cover nursing home costs, these plans are also expensive and may come up short for long-term stays.This leaves millions of Americans reliant on Medicaid to pay for nursing home care a far from perfect solution that usually involves spending down assets to qualify. With proactive Medicaid planning, though, it is possible for someone to qualify for Medicaid and still retain some of their assets. The sooner you start planning, the more options youll have for protecting your parents assets from nursing home costs. Odds of Needing Long-Term Care Are HighThe lifetime likelihood of needing nursing home care is relatively high. About 70 percent of people who turn 65 today will eventually need some type of long-term care, including nursing home care.About 1.3 million Americans aged 65 and older currently live in nursing homes, and about 40 percent of todays 65-year-olds will spend some time in a nursing home before the end of their lives.Women are more likely than men to need long-term care, and the older a person gets, the more likely they are to need it. At the same time, there has been a growing trend of younger adults (those under the age of 65) living in nursing homes, in part due to Medicaid eligibility expansion under the Affordable Care Act. Research shows that this group increased from 10.6 percent of total nursing home residents in 2000 to 16.2 percent in 2017.Medicaid expansion has led to more people of all ages qualifying for the joint federal and state health insurance program. Intended as the payer of last resort when it comes to long-term care, Medicaid has become the primary nursing home insurance for millions of Americans due to the absence of any other public program covering long-term care.In 2020, around 6 million Medicaid enrollees used the program to pay for long-term support and services. Around one in five enrollees received institutional care, such as care provided at a nursing facility.After age 65, more than a quarter of adults receive at least 90 days of nursing home care. Thirteen percent of them receive long-term Medicaid-financed nursing home care.Medicaid typically pays for 100 percent of nursing home costs and may be the only insurance option available for long-term stays. Long-term care insurance can be purchased, but most policies have limits on the maximum daily or monthly benefit amount and the total lifetime benefit, as well as terms and health requirements that may exclude coverage.A nursing home stay isnt necessarily permanent. About 15 percent to 20 percent of admissions are for short-term rehabilitation. Among current residents, the average stay is one year and four months. More than half of residents stay for at least 100 days, while 15 percent of older adults spend over two years in a nursing home.With nursing home costs running $250 to $300 per day in some states, costs can add up quickly. The average nursing home stay of little over a year, or about 485 days, could end up costing upwards of $150,000.Extrapolate these costs over multiple years, and they are unsustainable for many families. Medicaid Planning StrategiesWhether a nursing home stay lasts months, years, or is permanent, you may have crunched the numbers and determined that Medicaid is the only feasible payment option for a parents nursing home care.This is a good news, bad news scenario. The good news is that its possible for somebody who doesnt currently meet Medicaids income and asset limits to spend down their excess assets to meet limits. The bad news is that these limits are generally only $2,000, which requires significant planning, since the average net worth of Americans is more than $1 million, including nearly $1.8 million for those 65 to 74.Another upside is that not all a persons assets count against the limit. A home, for example, is typically exempt. Someone can also own one car without exceeding Medicaids asset limits.Many Medicaid spend down strategies take advantage of workarounds that allow nonexempt assets to be converted to exempt assets, thereby excluding them from Medicaid calculations. But these strategies often involve navigating a tricky five-year lookback period where past asset transfers are scrutinized to ensure applicants dont give away assets to qualify for Medicaid.Keeping these considerations in mind, there are financial planning strategies that can help to protect a parents assets from nursing home costs and a Medicaid spend down. Medicaid-Compliant Annuities (MCAs)MCAs, a type of single premium immediate annuity, allow countable assets (like cash or investments) to be converted into a stream of income that doesnt count toward the Medicaid asset limit. The payout structure must be based on life expectancy, and once purchased, the annuity cannot be cashed out or changed; funds in the annuity are no longer accessible as assets.Annuity income may affect your parents eligibility for other needs-based government programs, such as Supplemental Security Income (SSI). In addition, the state Medicaid agency must be the primary beneficiary in case of the annuitants death during the annuity period. Medicaid Asset Protection Trusts (MAPTs)Medicaid-compliant trusts, like MAPTs, hold assets for a set period, after which they transfer to beneficiaries (usually children or other family members).Assets in the MAPT are no longer considered part of your parents estate for Medicaid purposes. They are legally owned by the trust, not your parents, although they may be able to benefit from these assets, such as remaining in a home transferred to a MAPT.Creating a MAPT triggers a penalty period of Medicaid ineligibility under the lookback period thats based on the value of assets transferred. A MAPT is therefore most effective when implemented well in advance of potential Medicaid need, often in conjunction with a parents estate plan. Promissory NotesA promissory note is a legal agreement that allows your parents to lend money to someone (e.g., a family member) who agrees to repay the money with interest over time. This converts a lump-sum asset into a stream of income.Not all states recognize promissory notes for Medicaid planning. In states that do allow them, they may be subject to scrutiny by state Medicaid agencies. The note must clearly outline the repayment terms and the interest rate must be at or above the applicable federal rate (the minimum interest rate the IRS allows for private loans).Interest income from the loan may be taxed at a lower rate, and the terms can be customized to meet individual needs. For the Medicaid applicant, however, the effectiveness of a promissory note is largely dependent on the borrowers ability and willingness to repay the loan. Life EstatesA life estate lets your parents transfer ownership of their home to a child or other family member while retaining the right to live there for the rest of their lives. It removes the homes value from their countable assets for Medicaid purposes and may protect the family home from Medicaid estate recovery, a program that empowers states to recoup Medicaid expenses from the deceased beneficiarys estate.Medicaids lookback policy applies to life estates, so the transfer must be done well in advance of needing care. Your parents may also lose some control over the property, and there could be tax implications. Other Spend Down StrategiesA spend down strategy might additionally include a parent spending on needs or wants that can both enhance their quality of life and help them qualify for Medicaid.Paying off debts, making necessary home repairs, purchasing a new car, prepaying funeral expenses, or taking a family vacation are ways to spend down assets and derive an instant benefit.Gifting assets to loved ones outside of the lookback period can reduce countable assets and fit into a gifting while living strategy, but annual and lifetime gift tax exemptions apply.If only one spouse needs nursing home care, Medicaid allows the other spouse (the community spouse) to retain a certain amount of income and assets.Because state Medicaid laws and individual nursing home care needs vary, there is no one-size-fits-all strategy for protecting a parents assets from nursing home costs and a Medicaid spend down. To develop a personalized plan that avoids penalties or disqualification from Medicaid in your state and also maximizes asset protection, consult with Ashley Day.  Phone: 251-277-3377.

As we age, simple daily tasks that we once took for granted may become more challenging. For many seniors, getting assistance with these tasks is crucial in maintaining quality of life, independence, and dignity. Here at Senior Helpers Overland Park, our mission is to provide compassionate care and practical help to seniors in need. We will help caretakers better understand and support the daily living activities of seniors, ensuring safety, comfort, and respect. Whether it's bathing, dressing, grooming, or using adaptive equipment, we'll guide you through the best practices to provide the right assistance while promoting independence.The Unique Needs of SeniorsAs individuals age, completing daily tasks independently can become difficult due to physical or cognitive limitations. However, everyone's level of ability and independence varies. By recognizing the personal limits and promoting self-reliance wherever possible, we empower seniors to be active participants in their care.Caregivers have to ensure the safety of seniors during daily tasks, whether it's preventing slips in the bathroom or avoiding hazards during meal prep. In addition, an equally important aspect is comfort. Be mindful of your loved one's physical limitations and emotions, ensuring they feel secure and dignified during these intimate moments.Assisting With Bathing and Personal HygieneBathing strengthens physical health and overall well-being. For seniors who struggle with mobility, careful assistance is essential. Before starting, ensure the bathroom is warm and all necessary supplies are at hand. Maintain their privacy as much as possible, using towels to cover areas not being washed. Remember to communicate throughout the process, ensuring they are comfortable and informed.Assisting With Dressing and GroomingDressing and grooming are personal tasks that seniors may find challenging due to mobility or coordination issues. To help, start by organizing clothes that are easy to put on and remove. While assisting, gently guide seniors through each step, offering help only when needed. In grooming activities like combing hair or shaving, be patient and gentle, always respecting their preferences and comfort.Using Adaptive EquipmentAdaptive equipmentincluding grab bars, shower chairs, and dressing aidsis key to helping seniors maintain independence, especially in their personal care routines. These tools can minimize strain and risk of injury, allowing seniors to perform tasks more easily. Ensure that you familiarize yourself with these devices and are comfortable in using them. Equally importantly, involve your loved ones in the decision-making process when choosing adaptive equipment to meet their specific needs.Maintaining a Respectful ApproachCommunicating effectively and respectfully ensures seniors feel heard and valued. Encourage them to express their feelings, ask for their consent before providing assistance, and respect their decisions. Striking a balance between assisting with daily tasks and enabling independence can be challenging, but it is vital for a senior's self-esteem and overall well-being.Senior Helpers Provides Custom Care ServicesTaking care of seniors involves a delicate balance of providing assistance and promoting independence. Caregivers play an invaluable role in ensuring the safety, comfort, and dignity of their loved ones during their daily activities. At Senior Helpers Overland Park, we're committed to providing high-quality care and support for seniors and their families in Overland Park, Olathe, Leawood, and Prairie Village. Whether you need advice, respite care, or long-term support, our dedicated and experienced team is here to help. Contact us today to learn more about our senior care services!

Being mindful of our dietary choices can result in improved cognitive health and emotional stability. The food we consume significantly contributes to these aspects, helping us to feel better, think clearer, and reduce stress levels. Senior Helpers Overland Park will explore the wonderful world of nutrition and its impact on our brain and emotional health. We've compiled a list of brain-healthy and stress-relieving foods that are beneficial for everyonefrom seniors looking to boost their cognitive abilities to caregivers needing a little help managing stress.Nutrition and Brain HealthCertain nutrients help to enhance memory and cognition and delay brain aging. This is particularly beneficial for seniors, who are often at risk of cognitive decline. Seniors can stimulate brain function and maintain their mental health by incorporating brain-friendly foods in their diet.Nutrition and Stress ManagementJust as foods can boost your brain health, they can also aid in managing stress levels. The body's response to stress can be intensified by inadequate nutrition. A well-balanced diet can promote resilience towards stress and foster feelings of well-being. Caregivers, who often face high stress levels due to their demanding roles, can greatly benefit from this aspect of nutrition.In the same vein, good nutrition can be pivotal in mood regulation. What we eat can impact our brain structure, brain chemistry, and, subsequently, our emotions. Foods rich in certain vitamins, minerals, and fatty acids can help regulate our emotions and reduce the risk of mood disorders. This is significant for everyone, seniors and caregivers alike.Fuel Your Mind and Mood With These FoodsHere are 6 brain-healthy and stress-relieving foods to add to your grocery list:BlueberriesDon't underestimate the power of these tiny fruits! Blueberries are bursting with antioxidants, vitamin C, and fiber. These nutrients work together to delay brain aging, improve memory, and protect your brain cells from damage.Dark ChocolateCraving a sweet treat? Look no further than dark chocolate! This delicious indulgence contains flavonoids, caffeine, and antioxidants.  These components not only benefit your brain health but also possess mood-boosting properties, making it a great stress reliever in moderation.BroccoliThis versatile vegetable is a powerhouse of nutrients for your brain. Packed with antioxidants and vitamin K, broccoli is believed to support cognitive function and promote brain health.Pumpkin SeedsThese tiny nutritional powerhouses are a fantastic source of brain-friendly nutrients. Pumpkin seeds are rich in antioxidants, magnesium, iron, zinc, and copper. These minerals are essential for maintaining cognitive function and overall well-being.TurmericThis vibrant spice has gained popularity for its numerous health benefits.  The active ingredient in turmeric, curcumin, boasts impressive brain-protective properties.  Curcumin can cross the blood-brain barrier and enhance the brain's oxygen intake, keeping you alert and focused.OrangesAs a rich source of vitamin C, oranges are a champion for brain health.  Vitamin C  plays a vital role in protecting against mental decline and improving overall cognitive function.Adding these brain-boosting and stress-relieving foods to your diet is simple and enjoyable! Explore different ways to incorporate them into your meals and snacks.  For instance, sprinkle blueberries and oranges over your morning cereal or yogurt. Enjoy dark chocolate squares in moderation as a delightful treat. Turmeric can be added to soups, stews, or even teas for a subtle flavor boost. Roasted pumpkin seeds are a delicious and healthy snack, and broccoli can be enjoyed in a variety of dishes, from salads to stir-fries. Remember, a balanced diet rich in these power foods nourishes your body, mind, and emotional well-being.Senior Helpers Offers Nutrition Assistance and SupportNutrition is crucial in maintaining our overall health, particularly brain health and emotional stability. By making conscious dietary choices, we can manage our stress levels, enhance cognitive health, and regulate our emotions. Whether you are a senior aiming to boost brain function or a caregiver looking for stress management strategies, incorporating these brain-healthy and stress-relieving foods into your diet can be a game-changer.For those in Overland Park, Olathe, Johnson County, and Prairie Village needing assistance with senior care, a healthy diet, or stress management, contact us at Senior Helpers Overland Park. We proudly provide premium senior care services!