Around Town : There’s no better time to keep what you’ve earned
Posted on Wednesday, July 9, 2008
URL: http://www.nwanews.com/rhtn/Editorial/4100/
Families in Arkansas are struggling with the financial realities of making choices about longterm care in their senior years or in cases of medical emergencies. As of July 1, we’ll provide a new option to preserve the dignity and the hard-earned savings of middle-income Arkansans willing to plan ahead for their own care or that of a family member.
Many families today must watch as elder loved ones, faced with the need for long-term care in a nursing home or assisted-living facility, exhaust every dime they’ve worked so hard to save over the years in order to get the care they need. Often, even that isn’t enough to keep up with the bills. And when these seniors turn to Medicaid for financial help, they encounter another dilemma. Seniors who’ve worked all their lives to save a nest egg to pass on to the next generation or who have built a small family business with a vision of the next generation taking it over are losing those assets and the dignity they deserve to keep. Under Medicaid requirements, they must not have assets exceeding $ 2, 000 to qualify for assistance. That means “ spending down” that nest egg saved to pay for a grandchild’s education. It means selling the family restaurant a mother had hoped to see her children take over. It means a father losing the farm he’d planned for his son and grandchildren to one day tend.
The same family members trying to help their elders deal with it today may one day face this same situation.
The United States Department of Health and Human Services reports that 60 percent of individuals over 65 will require some form of long-term care and more than 40 percent will spend time in a nursing home. Prices for these services continue to soar higher and higher. As Baby-Boomers age, filing for financial assistance for long-term-care bills will only increase.
And, it’s not just a problem of the elder years.
Catastrophic illness can strike anyone, at any age. It can leave middle-income Arkansans in need of Medicaid assistance with too many assets to qualify, but not enough assets to pay the bills that are mounting up.
Some individuals are fortunate enough to have the financial support of family and friends. But for others, this is not an option. They need more intensive in-home or out-of-home care, and they need further financial assistance to receive that.
I promised, that as Governor, I would address the complicated long-term-care issues our aging population faces. Starting July 1, a new option will be on the table for middle-income families planning ahead. Arkansans will be able to purchase long-term-care insurance policies that will help them receive the care they need and protect the assets they worked so hard to save. The Long-Term Care Partnership is a joint effort among Arkansas Medicaid, the Arkansas Insurance Department, and private insurance companies.
This partnership will provide our people with the option to purchase private long-term-care insurance that will “ spend down ” the amount of the policy, allowing individuals to qualify for Medicaid help while retaining what they’ve earned. For example, if a person takes an insurance policy worth $ 50, 000 in benefits, that policy holder will be entitled to secure $ 50, 000 of personal assets and still qualify for Medicaid. The amount of the policy, great or small, is left to each individual who decides to plan ahead with this new insurance.
With this partnership, Arkansans facing their senior years or a tragic emergency will have peace of mind knowing that personal assets or a family-owned business they had saved for and built for years may still be passed on to the next generation. The pursuit of affordable, adequate, long-term care should not prevent Arkansans from attaining the American Dream of resting assured that their children will reach even higher than those who came before them. And all of us, young and old, deserve to live our lives with dignity.
You can find out more about the Long-Term Care Partnership and view a list of insurance companies currently licensed to sell partnership policies by visiting ltcp. arkansas. gov.
There is no better time than now to start planning for the care you may need in the future. By acting early, you can make this time of essential decision making a little easier, and alleviate the burden for those who love you. Be prepared, be covered and continue the coverage of future generations by securing more of what you’ve earned over a lifetime of hard work.
Arkansas Gov. Mike Beebe can be reached at State Capitol, Little Rock, AR 72201 or telephone (501 ) 682-2345.