Teamwork Required. Long Term Care.

Wendy Boglioli

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Imagine this. Your client, who has weathered the financial markets and has managed to build a modest retirement nest egg with your help, takes a seat in your office and proclaims, “I’d like to rent a room for $8,000 a month.”

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You can feel your mouth gape open as your pulse quickens. “Is this a room with a view on a private island somewhere in the South Pacific?” you ask with a hesitant chuckle.

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“No, no. I know I don’t have that kind of money,” she responds with a smile. “It’s just a modest room down the road. I’ll share a bathroom to cut costs and I’ll get three meals a day. I can’t buy the room, but I can rent it for months or years on end if need be.”

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Believe it or not, this scenario plays out every day in offices just like yours when a client or their loved one faces the prospect of paying for long term care (that $8,400 figure is my own mother’s monthly nursing home bill in the Midwest and that was 6 years ago; check Genworth’s Cost of Care Survey for averages by state). If you haven’t yet experienced this with a client, you inevitably won’t have long to wait. Someone aged 65 today will require three years of long term care on average during their lifetime (National Clearinghouse for LTC). Of those, women are particularly vulnerable and require longer care on average than their male counterparts.

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Rather than stare like deer in the headlights when the need for long term care hits, let’s see how you can help those clients like the one above. Even if they don’t have an enviably large savings to cover their long term care needs or have not invested in an long term care insurance policy, you can be a tremendous resource to them. ?So put on your team jersey and follow this advice.

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Get Familiar with Government Programs- Let’s start where most people do… with Medicare. Generally, many Americans incorrectly assume that the government program pays for long term care needs. While Medicare can provide very limited in-home services for short term durations based on a variety of factors, long term care is not covered. From homemaker services and transportation to adult day care and round-the-clock nursing care, we all have four main payment options for these high expense services: our own savings, our family’s pocketbooks and savings, long term care insurance and Medicaid (for those who qualify).

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Ensure that your client understands their short term Medicare benefits before deciphering how to tackle LTC. Medicaid.gov is a good place to start. Medicaid is a need-based program for low-income individuals and families, but some of your clients may qualify or have loved ones (ie. parents) who do. PACE is a joint Medicare/Medicaid program that provides all-inclusive in-home care to those over 55 meeting certain qualifications. It’s an important resource but is not available in all locations to everyone. Check the PACE website to see if this is available to your clients and their loved ones.

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Lastly, VA Benefits continue to serve as a backbone for veterans and their families. It’s important that your clients who have served our country understand the extent to which the Dept. of Veterans Affairs (VA) covers long term care and what they may have to cover themselves based on their needs. Visit the VA website to connect with your local VA programs and learn more.

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Bring in the Team- The best advisors I’ve worked with through the years have taken the team approach to helping clients navigate the long term care maze. Hosting an evening event at your office or elsewhere for your clients is a great way to introduce them to fellow community members who possess insight and knowledge they need. For vulnerable clients without a long term care insurance policy, piece together a plan of attack beforehand by utilizing a team. Here are a few helpful people that you should reach out to in your community:

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A Long Term Care Insurance Specialist- An LTCI specialist understands the complex and changing long term care benefits and services (seek advisors with CLTC or LTCP certifications). While not all of your clients may qualify for insurance policies due to their health, many will if they act early before health concerns arise. For those that are uninsurable, a specialist can still offer guidance so that you and they better understand the current landscape and costs of services in your area.

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Geriatric Nurse or Licensed Healthcare Practitioner- Few among us want to envision ourselves in a future state of requiring care, but most of us would like to be prepared if not for ourselves than for the sake of our loved ones. After all, long term care impacts them just as much (sometimes more so) than the recipient of care. Gain a better understanding of the many forms of long term care from a geriatric nurse in your area. They can help your clients decide which tasks a family member may be able to perform, what community services are offered locally and more.

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ElderCare Attorney & CPA- By finding a trusted attorney in your area who specializes in Elder Law ( ElderLawAnswers.com is an example of one online resource) along with a seasoned CPA, you can help your clients understand the nuances of government programs, withdrawing from retirement investments to pay for long term care, estate taxes and more. A team meeting in your office can help clients who are dealing with these issues determine the best route for their potential needs- now and in the future.

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WLB, Inc.?2021

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