The Biggest Misconception about ALFs and Medicaid – Part 1
I wrote about this 5 years ago, but it still is one of the most common misconceptions families have about the ability to qualify for Medicaid in an assisted living facility. Let’s look at the following very common scenario. Mom can no longer live at home alone. Her daughter, Carol, is exploring assisted living as an option. She tours an assisted living facility and has a conversation with the Admissions Director. Carol asks the following question, “Do you take Medicaid?” The director tells Carol that they are a New Jersey Medicaid approved facility and then explains that residents are required to private pay for 2 years before becoming eligible for one of their Medicaid “slots”. That time period for most facilities typically falls within the range of 2 to 3 years. Each facility sets its own policy and requirements. But what Carol is likely to hear is something very different. She tells me “the facility said if I pay for 2 years Mom will get Medicaid”. Now, although I wasn’t in the room when that conversation took place, if I was a betting man, I would say odds are that the director didn’t
New Medicare ID Cards
In an effort to prevent fraud, the Centers for Medicare and Medicaid Services (CMS) has redesigned Medicare cards. The cards are still red, white and blue but they will no longer contain a Social Security number, gender, signature and other personal information, all of which could compromise the Medicare beneficiary’s identity. The new cards have an 11 character, randomly assigned number that is not in any way connected to the beneficiary’s other personal data. All current beneficiaries are scheduled to get their new cards no later than December, 2019. In our area, Pennsylvania residents are scheduled to receive their cards between April and June, 2018. New Jersey and New York residents will receive their new cards beginning after June, 2018. Before the mailings start, beneficiaries should insure that the Social Security Administration has their correct address. Any address changes should be made by contacting the Social Security Administration at ssa.gov/myaccount or by calling 800-772-1213. Medicare beneficiaries should also be aware of scammers who are trying to take advantage of unsuspecting beneficiaries by contacting them directly about their replacement cards. CMS employees never call and ask for personal or private information about Medicare recipients. There also is no fee or
Unexpected Inheritance – Too Good to Be True? Part 2
In last week’s post I shared with you a letter my client, John Smith, received about an unexpected inheritance. There are several red flags that tell us it’s a scam. The letter contained the bank’s recognizable logo. It appeared to be “off”, although I was looking at a copy of the letter. It may have been even more apparent if John had given me the original. The account manager’s instruction to email him at his personal email was also a clear sign this was a scam. In fact, the letter only had listed his personal email address. Let’s take a look at the content of the letter. Donald Smith died in a car accident without a will. It is curious to me how the account manager would know this. Banks don’t have any reason to inquire or know whether their clients do or do not have wills. But let’s assume that Donald didn’t have a will. What happens in that case? Well, one thing that doesn’t happen is the bank taking it upon itself to go looking for heirs. Banks don’t check for heirs when their clients die. The account sits
Unexpected Inheritance – Too Good to Be True? (Part 1)
In this week’s post I will share with you a letter a client received that he forwarded to me. Our client – we’ll refer to him as John Smith (not his real name) – received a letter from the account manager at a foreign branch of an international bank. John lives in New Jersey. The letter explains that the branch manager is writing concerning one of his deceased customers who happens to have the same last name – we’ll call him Donald Smith. The account manager tells us that Donald Smith died in a horrific car accident and left an account with no beneficiary upon death. We are also told that Donald died intestate. He did not have a Last Will and Testament. Oh, yes and one more key fact – Donald Smith had $40 million in his account when he died. Our account manager continues to explain that he found John Smith’s contact information while searching for Donald Smith’s next of kin or someone with the same last name. For the past 3 years the bank has tried unsuccessfully to locate any next of kin. The letter continues to inform us
Searching for a Support System (Part 3)
In last week’s blog post I explained some options for our hypothetical client, Jane Doe, who has a limited family and friend support system. Neighbors, friends from different walks of life and professionals both on the health care and legal/financial side can be alternatives. I have found in my years of practice that there are many goodhearted people willing to help. There are, however, abuses that can occur. We read about them occasionally in the media. So what steps can Jane take to minimize that risk? Giving someone power of attorney over financial matters, by necessity, gives the agent access to your money, an unnerving thought for many. Choosing co-agents who must specifically act together can minimize the risk of abuse. Only providing access to certain accounts and not others can also be a workable option although Jane needs to make sure she gives the agent access to enough funds to meet her needs. If Jane has a professional such as an attorney, accountant or financial advisor that she is comfortable with, that person can monitor the agent’s actions. An easy way to do that is to receive monthly statements. Provision can also
Searching for a Support System (Part 2)
Last week I was talking about the hypothetical client, Jane Doe. Jane does not have a family and friend support system to turn to when she can no longer handle her own financial and medical affairs and decision making. What options does she have? Trusted professionals can sometimes be a good person to fill these roles. That could be Jane’s attorney, accountant or financial advisor. Many financial advisors, however, are bound by strict licensing rules which limit their ability to serve as agent under a power of attorney for their own family members. A care manager or social worker could also be a suitable option for health care representative. This type of professional will be very knowledgeable about care options and will be comfortable making medical decisions. In my practice, I have seen several different people serve as fiduciaries for aging seniors. In a handful of cases it has been a caring neighbor, who maybe lives next door to Jane. It often begins with the neighbor running errands for Jane, bringing her milk and bread when the neighbor goes to the grocery store or making sure she is OK when the neighborhood loses