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Recipients of Entitlements Must Qualify for Benefits Offered

SENIOR SECURITY
By Richard Will and Bob Gay

As recent as 50 years ago, the late, great U. S. Senator Everett Dirksen saw the rise in government spending and unwittingly gave us the quote by which he will, perhaps, be best remembered: “A billion here, a billion there, and pretty soon you’re talking about real money.”

Well, regardless of the late senator’s quip on federal spending, the fact still remains – this is a government for, of, and by the people. Those billions of tax dollars were designed to benefit the taxpayers. The programs they support, when it comes to seniors, are called entitlements and yet the recipients must qualify for the benefits offered!

It’s sad when we realize that many seniors are shamed into paying their own way, out of their own pockets and hard-earned life savings when it comes to long-term care costs. Many senior advocates insist seniors should be helped to understand their state and federal long term care entitlement programs rather than censored.

One industry that takes advantage of struggling seniors is the long-term care insurance industry. With less than 10 percent of the American senior population taking advantage of their offers, we see an industry that is shrinking from the scene.

According to one leading source (Senior Insurance Training Services based in Sonoma), nine top carriers exited the market place in 2000 alone. In 2003, one of the largest carriers in the country, Conseco, also left the market. Thrivent’s Vice President Dave Christopher, admitted that, after 15 years in the business, Thrivent was leaving because of profitability problems.

Why aren’t the seasoned citizens of this great state willing to entertain the expensive long term care insurance offers with their continuing rate increases? Perhaps it’s because state and federal long-term care programs are available to those who will simply take the time to educate themselves and qualify for their entitlement benefits.

For some seniors the answer is not so simple. The day to day realities of aging and the confusing information glut has stymied many. For the confused it’s actually a two-part problem. First, it’s a lot easier to deny any need for long term care while they are relatively healthy. If denial doesn’t roadblock the aging from planning for the inevitable (body parts wearing out) then procrastination tries to halt common sense and tell them they can do their planning later.

But when “later” comes, these seniors are in a crisis. Catastrophic needs arise and even the long term-care insurers don’t want a senior with poor health. By this time, everyone is in a panic. Logic goes out the window and the worse decisions of a lifetime are made with the spouse and family on the losing end of the stick. Their wills and trusts end up empty because the nursing homes get all the assets and the remaining spouses are usually impoverished because the families paid out $5000 to $6000 a month in long-term care costs until their estates went broke.

The ironic end to these tragic stories is that it’s all so typical. When all their resources have been exhausted through the spend down process – the family now qualifies for their state and federal benefit programs – but it’s too late! If only they had known they could have kept their assets and qualified for their benefits with the proper planning.

How much more wisdom would there have been in taking a few preventive measures and educating themselves in the qualifying process. Why not learn how easy it is to let your tax dollars pay for your long-term care through your state and federal long-term care programs instead of paying twice and wasting your life savings? Time and the law are still on your side – you’ve worked hard all your life – is it worth the effort to learn your rights?

Richard Will, an elder law attorney, and Bob Gay, a Medi-Cal planner – both from Sacramento – co-host “Successful Retirement and Beyond,” a radio talk show which airs Sundays at 10 a.m. on KCTC (1320 AM). They can be reached on the Internet at www.seniorsecurityplan.com