THE TERRIBLE TRUTH ABOUT THE COST OF ALZHEIMER’S DISEASE!I was diagnosed as having Alzheimer’s Disease (AD) on June 30th 2006. At the time I was a retired lawyer aged 69. My wife and I had accumulated an estate for retirement sufficient to take care of us comfortable for the rest of our life.
This retirement fund was all in funds we saved, invested, sheltered in part in deferred income tax funds, other of it in funds on which we paid taxes. We did not have public or private pensions available to us. We had done it the American Way, saved for our retirement and funded that ourselves.
One of the first things we did upon learning of my diagnosis (dx) was to contact the financial professionals through whom we invested and my old law partner who had done my estate planning to determine whether or not any changes were in order with our new circumstances. What we learned was beyond RUDE!
The Cost of CareCurrently I am in what is called Early Stage AD. This is loovking on AD occurring in three stages.
The first, Early Stage, is when we remain fairly functional, we need little or no help functioning and don’t need someone to take care of us. The greatest change is the cost of being on medication and being unable to remain working.
This is where the giant whirlpool starts sucking our finances down the angry eddy of Cost of Care.
The second state, Mid Stage, is when more help and care is needed. We need someone keeping an eye on us, need things to be done for us, are often unable to be left alone. It is during this time that we start needing an attendant, day care, assisted living if unavailable at home and a variety of other forms of maintenance to simply see our days through.
The giant whirlpool gets worse!
Late stage is usually when we need to be institutionalized or need constant care. This is the pretty bleak zone where all of us, and more so our loved ones would rather not see us going. Having no choice Euthanasia currently legally and morally unacceptable we have to tough it through.
Here the giant whirlpool becomes a wide open drain!
Long Term Health Care InsuranceUnless you have long term health care, which is limited by amount and time based on premium, you are on your own when it comes to funding the cost. Without it Medicare, Health Coverage, Public Aid are no help at all. You can get financial assistance from the Government when your spouse and you have spent down your entire estate excepting your homestead to a little more that $100,000.
Sheltering Estate to Qualify for Public AssistanceYou can shelter your estate to qualify for government assistance. There are rules that need to be followed that need to be understood. Nonetheless, there are greater risks if not complications in any of the sheltering schemes.
I of course looked at sheltering and concluded it made sense to do nothing and hope for the best.
Because you have your own funds accumulated for retirement that exceed the threshold (minimum) levels you cannot depend on Public Aid. This may be as it ought to be. Considering the practice in the past, when mom & pop signed the farm over the to the kids then entered the Nursing Home in town, it was changed
You pay your own way now. You pay it yourself. You pay it down until there is no more left than the threshold amount at which time you can then apply for aid. No problem here. We are blessed to have what we have. We can stand some of this risk.
This is true! However $100,000 can slip away pretty fast at 6,000 or 7,000 a month. Currently a nursing home in the Midwest runs about $7.000 a month; assisted living about $6,000 for the same month. Some are cheaper but I am advised this is average. When the survivor of two who are married outlives the person cared for, will there be anything left for that survivor to live on? $100,000 will not go very far.
Paying down an estate at $72,000 to $84,000 for care a year will drain the funds of a husband and wife pretty quickly. Consider not only the pay out for care, add: living expense (for the one not being cared for) insurance coverage, medical and drug costs, housing, clothes, food, etc., everything pays out quickly. Those living expenses continue after the death of one of them.
If you have funded your own retirement as many people not having the benefit of pensions have done things can get pretty bleak pretty quickly. The IRAs the other profit sharing or deferred income accounts to which we have all contributed are usually considered part of your estate when considering entitlement for Public Assistance for any care. They must be spent down before application for help.
WE NEED TO FIND NEW STRATEGIES FOR ECONOMY OF CARE!We need to find alternative ways of care for Alzheimer and other folks eventually needing home or institutional care services. AD gives a best case illustration. AD has the capacity of reaching epidemic level when the Boomer Generation reaches the doorstep of aging as they are now starting to do. By number there are so many. They are living longer.
The risk that accompanies the quantity to become afflicted when measured in anticipation of the escalation in their number is scary. Neither Social Security nor private health care entities are going to be able to fund it. Nor will Government fare better. AD alone has the capacity of breaking our economy far more than anything else now or in the predictable horizon does.
CARE NEEDS TO BE PROVIDED AT REDUCED COSTWhat are sorely needed are lower level care facilities and assistance programs. Whether these be in the form of boarding and care homes, co-ops, foster homes as they are sometimes called or people simply buying a group home and hiring their own care persons. In support of this is the need for programs which will help organize, facilitate and maintain these kinds of programs.
One possibility of accomplishing this is through charitable, benevolent or local groups. Some entity at a lower level than the Federal Government. This is seen being done in some areas; so much more is needed.
Tax Breaks and Public IncentivesAdditionally tax breaks are needed. This is where the Federal Government can help the most. Right now so much effort has gone into removing any opportunity for anyone to game the system on the receiving level. This may be as it ought.
Nonetheless it seems irrational when it drains the funds needed survive and leads to eventual penury. The epidemic proportions of the issue and the economic devastation it will wrought need our attention.
We need tax breaks providing deductions, credits or incentives for in home cost of care, day care, respite care, any care in other forms less costly because they are provided at home or in a local economy facility.
Personal tax breaks are needed for the cost of care facilities. There needs to be a scheme to reward economy of costs in providing services. Other tax benefits are needed for programs to supplant the need of public funding for care.
These need to be explored and the best of them provided.
We Need To Find A More Economical Way Of Providing Care And Respite. The problems today with cost of living, health care and insurance costs, medical and hospital costs, the inability of our politicians to get it together in any meaningful way clearly demonstrate our future. The prospect of what we will face is inversely magnified by the inability of our culture, institutions and governmental processes to care for the current insurmountable costs we have caring for ourselves.
How then are we to meet this coming crises bearing down on us at breakneck speed?
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