Long term care insurance: If you’re a woman, be prepared to pay more!

Over ten million people have purchased long term care insurance, primarily to cover healthcare expenses that may occur in old age or during catastrophic illness.

Up until now, this insurance usually treated men and women equally.  Policy price depended on health status and age, not gender.

But this year, long term care insurance companies have indicated that they are going to start charging women more for their policies.  One of the first companies to introduce this new type of pricing is Genworth Financial Inc., purported to be the largest seller of insurance in the United States.  Their goal is to reflect statistical realities.  Women live longer than men and prepare more effectively for their futures by buying long term care policies.

According to Genworth, two thirds of its long term care payouts go to women, even though, in 2011, women only bought about 57% of its policies.  Women live longer than men and have higher rates of disability and chronic health problems.

So this spring, if their proposed plan is approved by regulatory agencies, Genworth will introduce gender specific policy pricing.  For women, that will boost the cost of a new policy by 20 to 40%, depending on age and benefit package selected.

A Genworth spokesperson said that the new pricing will only affect women applying on their own.  Lower rates will still be offered to married couples who purchase joint coverage and the changes won’t affect current policy holders.

For more information about long term care, go to www.diesmart.com.

 

Nursing Home: If your parent needs one, will you have to pay the bill?

This is a true and shocking story.  John Pittas was ordered by a Pennsylvania court to pay his mother’s $92,943.41 nursing home bill under a filial support law.  The filial support law states that certain family members are liable for the care, maintenance and financial support of some other indigent members of that family.  It’s a law that’s been around since colonial times in one form or another.  Several states have abolished it but 29 have not.

John’s mother entered the Liberty Nursing Rehabilitation Center in Allentown, PA and spent about six months there after breaking two legs in an auto accident in September 2007. 

In March 2008, his mother, who was born in the United States, relocated to Greece where two other children live.

As the only family member still living in this country, Pittas was sued for payment of the huge bill.  The owners of the nursing home sued him for the money and a 2011 court trial was decided in the nursing home’s favor.

If his mother’s Medicaid application had been approved prior to the accident, this never would have happened.  Medicaid would have paid.  Last year, Pittas appealed but the Superior Court of Pennsylvania once again ruled in favor of the nursing home.

If you have an aging parent who may one day need nursing home care, what can you do to avoid having the same problem as John Pittas?

1) Talk with your parent about his or her financial resources.  If your parent is reluctant to have this discussion, relate John Pittas’ story.  It’s better to have a plan prior to an accident or other health crisis.

2) If your parent has limited resources, find out whether that parent is eligible for Medicaid.   If so, get your parent to apply immediately so that it will be available when needed.

3) If your parent is not eligible, sit down with all the members of your immediate family and talk about which family members can provide care or financial aid in case it is needed.

Don’t delay.  Put a plan in place today so that you won’t suddenly receive an unexpected bill for $93,000 or more.

For more information about planning for long term care and Medicaid, go to www.diesmart.com.

Turn into a Tree after You Die!

By 2025, it is estimated that more than 50% of all the people who die in the United States will be cremated. Gerard Moline, a Catalan artist and product designer, has come up with a very creative solution for what to do with the ashes. He has patented the design for the Bios Urn.  It is a biodegradable urn made from coconut shell, compacted peat and cellulose and inside it contains the seed of a tree. Once the deceased’s ashes have been placed into the urn, it can be planted and then the seed germinates and begins to grow.

What do you think? Would you like to leave behind a tree as your legacy?
For more information about funeral planning, cremation and burial, go to www.diesmart.com.

Tax ID Theft – a massive problem, especially in Florida

Identity Theft

Identity theft of the deceased is a problem which we have written about before. It’s one that can be prevented by taking some simple steps. However, the U.S. Treasury Department recently announced a new, lucrative reason to steal and use the identity of a deceased person – tax identity fraud.

How does this work? Using stolen names and Social Security numbers, thieves are filing phony electronic tax forms to claim refunds. According the U.S. treasury department, this is a huge problem that could cost our country $21 billion over the next five years. The number of cases nationwide has skyrocketed from 48,000 in 2008 to more than 1.2 million in 2012.

It is a very troubling problem since, unlike Medicare fraud, it is associated with violent crime and armed gangs. All a gang needs is your name and tax ID number. They can make up the other details needed to complete a tax form.

To prevent this from happening, the IRS is trying to speed up the loading of data from W-2 payroll forms issued at the beginning of the tax season, a time lapse which gives thieves time to file using false data.

They are also looking for ways to authenticate the identity of tax files at the time of filing and are working with the Social Security Administration to limit access to a registry of Social Security data of deceased tax payers, the Death Master File. This File is often a target of fraud since Social Security numbers currently become public record 90 days after someone dies.

To learn more about identity theft of the deceased and find out how you can prevent the identify of a loved one from being stolen, go to https://diesmart.com.

End-of-life care: We must find ways to improve it

In the 1900’s, death often took place in someone’s home with loved ones nearby. Now, as more people are living longer and lifestyles have changed, death often occurs in a hospital overseen by trained staff. The resulting increase in the cost of dying has raised serious issues related to the current American health care system.

The National Institute of Medicine, the health branch of the National Academy of Sciences, recently announced that “given the rapidly changing environment for health care delivery, punctuated by the landmark passage of the Affordable Care Act in 2010, and the twin imperatives of improving the quality of health care while controlling costs, the time is ripe for a new examination of how individual values and preferences can be aligned while assuring compassionate care focused on the needs of individuals approaching death in an affordable and sustainable manner.” “…the matter of death and dying has become a political as well as an ethical, moral and societal one.”

The Institute said that it is pulling together a panel of experts to tackle this critical subject. “Given the importance of death and dying to our citizens and our nation, the IOM plans to examine the current state of end-of-life care with respect to delivery of medical care and social support; patient-family-provider communication of values and preferences; advance care planning; health care cost, financing and reimbursement; and education of health professionals, patients and their loved ones.

The study will also explore approaches to advance the issues surrounding the end of life from a wide variety of perspectives including clinical care and delivery, resources and workforce, economics, spirituality and compassion.”

On January 29th and 30th, the National Academy of Sciences also hosted the first National Summit on Advanced Illness as part of their effort to find ways for people to get good end-of-life care.

As our society ages, end-of-life care – how to afford and sustain it – becomes a critical subject. To read more, go to http://www.diesmart.com/.