For

With Medicare

and Social

Security

reaching the

breaking point,

many are

looking at

long-term care

insurance

policies.

ERIC BAUM

LU

SPECIAL TO THE JEWISH NEWS

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CD

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58

Eric Baum is a registered
representative for John
Hancock Distributors.

PHO TO BY DANIEL LI P PITT

ilt ,

Aging

- \

im and Sheryl Bloom, ages 45 and suggest a mounting finan-
44, have better reasons than a cial epidemic and few im-
morbid fascination with their de- mediate solutions.
Mike Conners, senior
pendency years to buy long-term
care insurance policies while in program director for south-
their 40s.
east Michigan for Citizens
The Farmington Hills based For Better Care, is con-
husband-and-wife attorney team of Bloom cerned Michigan's Medic-
& Bloom P.C. recently added a new facet to aid fund will be bankrupted
their retirement plans which pays antici- by the Blooms' generation
pated nursing home or home health care unless changes are adopt-
costs.
ed soon.
"We want our money and our lives to end
`The system at present is
at the same time. We wouldn't want one per- ill-equipped to handle the Sheryl and Jim Bloom: A long-term plan.
son to bankrupt the other if we get sick," tremendous future growth
said Mr. Bloom.
of people who will need some form of as- pend on Medicaid for their long term care
needs. Medicaid kicks in only after all re-
Seeing personal injury clients' costs of sisted-living benefit," said Mr. Conners.
care on an almost daily basis prompted the
Medicare covers the first 20 days in a maining assets are spent down to $75,000
Blooms to ponder how well their own nursing home after a mandatory three-day per spouse, a sparsely furnished home, one
nestegg would weather a lengthy illness af- hospital stay. Patients who spend the re- car, two prepaid graves and a modest
ter retirement.
maining 80 days of Medicare benefit must amount of life insurance.
Giving away assets to appear poor enough
Mr. and Mrs. Bloom know they are rid- require therapy or need supervised medical
ing the crest of the largest and most costly attention. These patients, called skilled or to qualify for Medicaid benefits is called di-
emerging age group. Figures from the U.S. intermediate who qualify for full Medicare vestment. Under the Health Insurance
Bureau of the Census project the number of benefits, account for roughly five percent of Portability and Accountability Act of 1996,
the government can impose fines and jail
Americans living beyond the age of 85 will the total long-term care population.
double in the next 25 years and multiply
More than 40 percent of Americans de- time for those found guilty of hiding assets
to qualify for Medicaid benefits.
fivefold by the year 2050.
"Most people begin pay-
The New England Journal of
ing for long-term care out
Medicine said in 1991 that
of their pockets and turn to
roughly 43 percent of all Amer-
Medicaid when their assets
icans over the age of 65 may
have been used up and the
need some form of assisted liv-
system is still not ready to
ing. When push comes to shove,
....
meet the needs of an aging
odds suggest one of the Blooms
population," said Mr. Con-
will eventually live in a nursing
ners.
home, and it will be expensive.
Kenneth E. Konop, an
"We know what it costs," said
attorney specializing in es-
Mrs. Bloom. "We have friends
tate planning at Miller,
who work at nursing homes and
Canfield, Paddock and
friends who own them. What we
Stone, PLC, refers to parts
bought today will not only be
of the new legislation as
good for when we're 70-85, but
"throw an old person in
something could happen at any
jail" provisions. Divest-
time."
ment was formerly used to
Considering nursing home
shelter personal assets
rates already range between
from nursing homes' col-
CNA-
John
The
$35,000-$80,000 per year, Mr.
UNUM Life
Continental Casualty
Hancock
Travlors
Insurance
lection departments.
and Mrs. Bloom's early atten-
Company
Mutual
Insurance
"Persons who have sub-
tion to long-term care planning
stantial reserves will have
is prudent.
Based on $100 per day nursing home benefit and $50 per day home health benefit.
to deplete those assets if
Demographics and inflation,
Data compiled by Michigan Medicare/Medicaid Assistance Program and the
•
they have not purchased
two juggernauts presently at
Michigan Office of Services to the Aging.
long-term care insurance.
loggerheads with one another,

41

Annual Premiums