SOURCES
There are various funding sources:
• Long Term Insurances / Reverse-Life Insurance™
• Mortgages / Reverse Mortgages
• Veterans – Aids and Attendance Pension (A&A) Program
• Medicare
• Medicaid / Medi-cal
Long Term Insurance - Long-term-care insurance, like all insurance, requires you to pay a premium on a regular basis so that you don't have to pay a huge amount later on in the event of a catastrophic illness or condition. Long-term-care insurance covers services for people who are unable to care for themselves. The most common reasons that people need long-term-care insurance are: a.) prolonged illness (i.e. cancer); b.) degenerative condition (i.e. Parkinson's or a stroke); c.) a disability; d.) cognitive disorder (i.e. Alzheimer's disease)
The above is an excerpt from www.helpguide.org. To find out more about Long Term Insurance, visit http://www.helpguide.org/elder/long_term_care_insurance.htm
Overview of Reverse-Life Insurance™
What is Reverse-Life Insurance™? Reverse-Life Insurance™ is the sale of a life insurance policy that is owned by a senior citizen, age 65+, or a person with a life expectancy of 15 years or less, for a lump-sum of cash today that is greater than the cash surrender value of the policy, but less than the death benefit of the policy.
Who buys the policy? Christian Stanley makes markets, both domestically and internationally, with over 20 institutional funders that provide seniors with lump-sum cash payments in exchange for life insurance policies that are no longer needed or wanted. The funding institution is the final purchaser of the senior citizen ’ s life insurance policy.
How does Christian Stanley maximize value? By creating a competitive auction market, we are able to consistently earn seniors, on average, 4-times the cash surrender value offered by the insurance carrier. Why are purchasers willing to offer more than the cash value of a life insurance policy? The cash surrender value of a life policy does not reflect the true economic value of the asset in a competitive market environment because it is simply the lowest value, or floor value, of the life insurance policy. Allowing parties external to the origination of the policy to submit a bid is necessary if one is to earn the fair market value of the life insurance policy.
Do I own my policy? The Reverse-Life Insurance™ market is referred to as the secondary market for life insurance policies. Life insurance is private property. Like cars, homes, stocks, and bonds, it can be sold in accordance with applicable laws. Our industry has exploded from only $50 million (US) in 1990 to over $4 billion (US) in annual transactional volume in 2002. The Wharton School of Business projects that our industry will reach $20 billion in annual transactions by 2009.
Mortgages / Reverse Mortgages - For seniors who are homeowners, a reverse mortgage, or home-equity conversion, is one way to pay for housing-with-services. It is a means of borrowing money from the amount your home is worth beyond any mortgage debt. There are a variety of lending institutions that provide this, regulated by the federal government. To qualify for this type of financing, the borrower must be age 62 or older and there must be adequate equity built up. Sometimes the requirement is that you own your home free and clear. There may be restrictions on how you can use the funds, but they may pay for:
- eliminating an existing mortgage
- long-term care insurance
- hired caregivers to help with housekeeping or provide custodial care services
- nursing home care for a spouse while their partner remains in the home
The conditions of a reverse mortgage require you to repay the loan if you cease to live in the home or, after your death, your heirs must pay back the loan, either through the sale of the house, or with other funds. Since this way of paying for housing has an effect on your heirs, it can be a complex decision requiring much thought and discussion.
The above is an excerpt from www.helpguide.org. To find out more about mortgage/reverse mortgage, visit http://www.helpguide.org/elder/paying_for_senior_housing_residential_care.htm
Veterans Aids and Attendance (A&A) Pension Program - Offered by Department of Veterans Affairs, Aid and attendance provides benefits for veterans and surviving spouses who require the regular attendance of another person to assist in eating, bathing, dressing and undressing or taking care of the needs of nature. It also includes individuals who are blind or a patient in a nursing home because of mental or physical incapacity. Assisted care in an assisting living facility also qualifies.
To find out more about Veterans Aids and Attendance Pension Program, visit
http://www.veteranaid.org/program.php or
http://www1.va.gov/opa/pressrel/docs/aid-and-attendance.doc
Medicare - Medicare, which is administered by the Health Care Financing Administration, covers short- term, acute care during a hospital stay, but not long-term care services.
Medicare is a federal insurance program that provides insurance to millions of Americans who are: 1.) People who are 65 years of age; 2.) People who are disabled; and 3.) People with permanent kidney failure.
Medicare (Part A) may help to pay for nursing care only if a person meets all of the following conditions: 4.) A person requires daily skilled nursing or skilled rehabilitation services that can only be received in a Skilled Nursing Facility (SNF). This need must be certified by a doctor; 5.) A person has been hospitalized for at least three days in a row (not including the day of discharge) prior to entering a SNF; 6.) A person enters the SNF within a short time (usually 30 days) after leaving the hospital; 7.) A person's care is for an illness that was treated in the hospital or arose when he or she was in a SNF for an illness treated in a hospital.
Medicare (Part A) can help pay up to 100 days of skilled care in a SNF during a benefit period. It pays for all covered services for the first 20 days. For days 21-100, a daily co-insurance amount can be charged to a Medicare recipient. If a person requires more than a 100 days in a benefit period, he or she is responsible for all charges beginning with the 101st day of continued residence at a SNF.
Medicaid(" MediCal " in California ) - Medicaid is offered to people of all ages who have very limited assets and income. This coverage acts as health insurance for costs of hospitalization, rehab and medicine. Under certain qualifying conditions, Medicaid will pay for care in Skilled Nursing Facilities (SNFs) and also Intermediate Care Facilities (ICFs).
Depending on the situation, if a person is eligible for both Medicare and Medicaid, Medicare will pay for its allowable benefits period if all requirements are met, after which, Medicaid will take over the financial assistance.
For complete information on Medicare and Medicaid, visit www.cms.hhs.gov
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HELPFUL LINKS
American Association of Homes and Services for the Aging (AAHSA)
http://www.aahsa.org
They are committed to advancing the vision of healthy, affordable, ethical aging services for America . The association represents 5,600 mission-driven, not-for-profit nursing homes, continuing care retirement communities, assisted living and senior housing facilities, and home and community-based service providers. Every day, AAHSA's members serve one million older persons across the country. AAHSA has state association partners that represent AAHSA members in most states.
Centers for Medicare and Medicaid Services
http://www.cms.hhs.gov
Complete information on Medicare and Medicaid services provided by the government.
Medicare
http://www.medicare.gov
The official U.S. Government Site for Medicare Information that have answers for frequently asked questions, such as, what type of services are covered under Medicare.
Social Security Online
http://www.ssa.gov
Official website of Social Security Administration.
The National Aging Information Center
http://www.aoa.gov/naic
The Center for Communication and Consumer Services serves as a central source for a wide variety of information on aging for older people, their families, and those who work for or on behalf of older persons. Includes information for government programs and services for older adults.
Prescription Drug Assistance Programs
http://www.medicare.gov/pdphome.asp
This section provides information on public and private programs that offer discounted or free medication, as well as Medicare health plans that include prescription coverage.
Veteran Aid
http://www.veteranaid.org
VeteranAid.org was created to provide information, free of charge, to veterans, their spouses and families. VeteranAid.org is not associated with any government agency.
The Alzheimer's Association
http://www.alz.org
The world leader in Alzheimer research and support is the first and largest voluntary health organization dedicated to finding prevention methods, treatments and an eventual cure for Alzheimer's.
National Association of Professional Geriatric Care Managers (NAPGCM)
http://www.caremanager.org
National Association of Professional Geriatric Care Managers GCM is a non-profit, professional organization of practitioners whose goal is the advancement of dignified care for the elderly and their families.
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GLOSSARY
Active Adult Living : Age restricted communities that cater to a more active lifestyle.
Alzheimer's Care: Alzheimer's is a degenerative brain disorder that causes dementia, including problems with memory, thinking, and resultant behavior. Although many theories to its cause have been advanced, its origins still remain unknown, as does its cure. Unfortunately, it is the most prevalent form of dementia in seniors, and impacts not only the victim, but family and friends. In its advanced stages, it requires constant care and supervision to ensure the patient's safety and well being.
Adult Day Care : Daily structured programs in a community setting with activities and health-related and rehabilitation services for seniors who are physically or emotionally disabled and need a protective environment. This care is provided during the day, and the senior receiving the care returns home in the evening.
Assisted Living : Assisted living bridges the gap between independent living and nursing care by serving those who need daily assistance, but not constant care. This level of living supports and enhances independent living, often delaying the need for more intensive nursing care. Daily assistance is provided with activities such as bathing, dressing, medications and meals in a home-like setting.
Assisted living may also be referred to as “Personal Care”, “Board and Care”, “Residential Care”, “Boarding Home”, etc., although some states differentiate between their definition of "Assisted Living" and these other terms. ALFs (Assisted Living Facilities) range in size from small homes housing 6-12 people to large full service facilities. The range of services varies from facility to facility. Services typically include assistance with meals, bathing, dressing, continence care and other routine daily needs. Medical services vary by facility.
Congregate Housing : Similar to independent living, but usually includes meal service, housekeeping and transportation.
Continuing Care Retirement Community (CCRC) : A community that provides housing and services, including healthcare if needed, to people of retirement age. The accommodations and services include independent living, congregate housing, assisted living, and skilled nursing. Most CCRC residents choose to move in when they are still healthy. Some research suggests that CCRC residents stay healthier because of the close relationships they develop and maintain with their peers and caregivers.
Home Health Care : Medical and nursing services are provided in a person's home by a licensed provider.
Hospice Care : Care and comfort provided to those with a terminal illness and their families. It may include medical, counseling, and social services. Most hospice care is furnished in-home, while specialized hospices and some hospitals also provide such care.
Life Care Community : A Continuing Care Retirement Community (CCRC), which offers an insurance type of contract and provides all levels of care. It often includes payment for acute care and physician's visits. Little or no change is made in the monthly fee, regardless of the level of medical care required by the resident, except for cost-of-living increases.
Independent Living : Generally a campus-style setting of apartments. Residents have their own private apartments and share common areas such as the dining room and activity areas.
Nursing Home : Nursing homes provide help and services to those who can no longer live independently and need 24-hour nursing care and supervision. Nursing care is for those who may be chronically ill and is also used when short term/respite care is needed or for those who need help with most daily activities such as getting out of bed, eating, bathing and dressing.
Resort Living : Age restricted communities that offer resort style amenities and can either be owned or leased. Similar to active adult living.
Respite Care : Temporary relief from caregiver's duties. Care can be provided in-home or in an assisted living facility or nursing home. Stays can last for hours or days.
Senior Apartment : Age-restricted multiunit housing for people who can live independently. Usually no additional services are provided. Comparable to independent living.
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