Spokane7
62°
April 13, 2010 in City
The high cost of living
Federal law will kick in too late to help Pearl Harbor survivor
Jim Sinnott, a Pearl Harbor survivor and WWII veteran, laughs with his daughter, Dianne McNeal, at the Spokane Veterans Home, where he’s been living since the symptoms of his Parkinson’s disease made it too difficult for his wife, Millie, to care for him at home.
(Full-size photo)
Jim Sinnott survived Pearl Harbor, joined his nation in picking up the pieces of that shattered day and helped his generation forge a more secure world for the next.
Japanese dive bombers couldn’t stop the Navy radioman in 1941, but Parkinson’s disease is catching up with him nearly 69 years later.
But while the degenerative disorder threatens his life, the cost of long-term care threatens to unravel the realization of his dream – shared by many aging Americans – of financial security.
The 87-year-old veteran and his wife, Millie, have lived frugally and managed to put away some savings, which are now being drained by the $7,000-a-month cost of his stay at the Spokane Veterans Home.
Sinnott, confined to a wheelchair, went to live at the nursing home about three weeks ago, his son Larry said. Millie could no longer help him into his wheelchair or lift him after a fall.
Sinnott’s daughter, Dianne McNeal, says the care her father is receiving at the state-run facility is exceptional, but the country could do a better job of providing for its veterans.
“It’s not fair to him and a lot of American veterans,” McNeal said. “He was promised he would be taken care of for life.”
Because Sinnott’s medical condition is not connected to his military service, he is not entitled to long-term medical care benefits from the U.S. Department of Veterans Affairs.
Like the vast majority of Americans, he does not have long-term care insurance that would pay a portion of his care in a nursing facility.
Legislation championed by the late Sen. Edward Kennedy and recently signed by President Barack Obama could provide relief for families like the Sinnotts in the future.
The Community Living Assistance Services and Supports Act will provide an opportunity for Americans 18 and older to pay into a long-term government insurance program.
“It will be a big help in terms of changing the experiences of older Americans,” said Susan Reinhard, senior vice president for the AARP Public Policy Institute.
But the CLASS Act has come too late for Millie Sinnott.
The act does not become effective until 2011 and experts say it is unlikely to be made available before 2013. Participants then must pay into the voluntary program for five years before they are eligible to receive benefits, so it will be 2018 before anybody can make use of the CLASS Act for long-term care.
A study by the U.S. Department of Health and Human Services found that people who reach age 65 have a 40 percent chance of entering a nursing home. Yet fewer than 9 million Americans have long-term care insurance, according to the American Association for Long-Term Care Insurance.
Medicare, the federal insurance for the aged or disabled, pays only for medically necessary skilled nursing care and only under certain conditions. It does not pay for custodial care to assist with daily activities such as dressing or bathing.
Medicaid, the state and federal insurance for the poor, does pay when the state determines a patient qualifies for assistance. Sinnott is currently paying about $231 a day for care at the Spokane Veterans Home. Medicaid would pay about $174 a day.
Eventually Sinnott will qualify for Medicaid, but only after he and his wife “spend down” their savings.
Federal law allows for spousal impoverishment protections intended to ensure that the spouses of those residing in nursing facilities can live out their lives “with independence and dignity,” according to the Centers for Medicare and Medicaid Services.
When a couple applies for Medicaid, the couple’s resources are combined to determine eligibility. Their home, household goods, car and burial funds are not included in this assessment.
One half of the combined total is the “spousal share,” which is used to determine whether the spouse residing in a nursing facility meets the resource standard for Medicaid determined by each state.
A “protected resource amount” is subtracted from the couple’s combined resources for the spouse who is living at home. So the government cannot take all of Millie Sinnott’s assets. It has to leave her a monthly allowance.
What the Sinnotts are experiencing is very common, said Reinhard, of the AARP Public Policy Institute.
Once you’ve reached age 85, there is a high probability of needing long-term care, and it’s expensive, Reinhard said.
“Most people spend down within five or six months,” she said. “These are middle-class people who have worked hard, raised children and contributed to the country.”
Rights panel poorly understood 
Another_Perspective on April 13 at 1:13 a.m.
my mom was “spent down” to near nothing.
this is unfair for those whom have worked all their life to save a little money.
mikeln on April 13 at 6:58 a.m.
There was never any plans to take care of veterns. We were used to make the wealthy more and more wealth. Sure, a lot of lip service, but not a lot of real help. The facts show this. Before you conservitives tear me a new one remember I am a veteren and know what kind of help I was worth.
johnclarke on April 13 at 7:30 a.m.
This fine gentleman deserves to be taken care of !
Scoutster on April 13 at 7:37 a.m.
So, Tea Partiers, how would you suggest we meet the needs of this family without raising taxes?
leekinny on April 13 at 7:42 a.m.
My wife and I are vets with MS who had long term care insurance, but, were dropped. Once you fall far enough to the bottom Medicaid works fine. It would be good if there were some bill to make insurance companies live up to their commitments rather than force them onto the taxpayer. Oh! there is–- now.
MrNatural on April 13 at 8:14 a.m.
Good Question Scoutster…damn good question…maybe we can ask Butch Otter when he comes to town…
ScottAOlsonLTC on April 13 at 8:23 a.m.
The CLASS Act will not be an option for those who are already disabled (and unable to work) or those who are retired and do not want to work. The law requires that in order to qualify for benefits, one must pay premiums for 5 years AND must be working for at least 3 of those 5 years.
The CLASS Act’s $50 per day “average benefit” will only cover a small portion of the $75,000+ per year most Americans pay for in-home care. Most people who want to protect their savings will still need to purchase long-term care insurance to supplement the CLASS Act benefit.
One of the biggest problems we face is that most Americans still think that Medicare or their medical insurance covers the cost of long term care.
The CLASS Act addresses this problem by making a very clear statement: You have to pay for your own long term care. You either have to pay for your own long term care by using your savings, the $50 per day CLASS Act benefit, long term care insurance, or a combination of these.
Most of the ten million Americans who own long term care insurance, own it because they’ve seen friends or family have to spend down their assets before qualifying for Medicaid. The CLASS Act will help alert the rest of the country to the fact that they need to financially plan for their future long term care needs.
Scott A. Olson
www.LTCInsuranceShopper.com
ScottAOlsonLTC on April 13 at 8:30 a.m.
Leekinny,
Long-term care insurance policies are “guaranteed renewable” which means that someone can only be “dropped” by the insurance company if the premiums are not paid on time.
If you were “dropped” from your long-term care insurance policy, even though you paid your premiums on time, you need to contact the Washington State Ins. Commissioner and have your policy re-instated.
Here’s the link:
http://www.insurance.wa.gov/consumers/Complaints.shtml
Scott A. Olson
www.LTCInsuranceShopper.com
leekinny on April 13 at 8:58 a.m.
Thanks for the link, ScottAOlsonLTC.
That’s where we’re at. Even our doctor couldn’t convince them of our situation. ‘MS improves with time—it’s not ever disabling.
A former executive for the company we had was making the talk show circuit explaining how it was company policy to remove those who are expensive.
We were terrified we would end up on the street, with the three kids we had at home. We took the SS route that would leave us in our home and with health care.
We were actually embarrassed by the whole thing, thinking it was just us this was happening to. After hearing of the thousands of others who went through this, during the health care debate, it became obvious that this was a human rights issue.
We’re doing fine, after adjusting to our income level after a few years.
Thanks again.
lewis8457 on April 13 at 9:06 a.m.
another name for Obama long term care facilities. is gas chambers.
leekinny on April 13 at 9:12 a.m.
That’s why I haven’t thrown away the term ‘teabagger’. It’s appropriate for those who stifle political discourse with far out lies and silly conspiracy theories.
BigE on April 13 at 9:19 a.m.
As an American/Veteran, we all agree the current system of healthcare does not work for everyone. It has worked for me, at 50 I take care of myself and with some help from above, I am still here, feeling good. I also know from my experience through losing family and friends from sickness, it will drain all of your savings and you will die, making someone money in the process.
Find comfort in something, I am taking the approach that everyone else has, I will not look past the end of my own nose, this world is filled with despare, saddness, cruelity, lies and all the other things Grandpa hated.
Albert on April 13 at 9:30 a.m.
Good morning Mr. Olson, with complete respect, your statements are a pipe dream. The “LTC”, i.e. Long Term Care that appears in your blog title, obviously designates you as a salesman of this type of contract.
I had disability income with an A+ company who went broke when I became disabled - they of course paid zero. This was a major, well known and respected company that I personally choose to protect my personal risks. AT the time of my permanent disability, I owned a large insurance marketing company. I still have a brokers license and thus have an extensive knowledge base about insurance companies, their ratings, and the products they sell.
When the LTC product line was introduced in the late 80’s I attended an advanced marketing program. The participants clearly saw that this program was nothing less than a legalized Ponzi scheme. Companies simply cannot acquire the ongoing premiums in sufficient amounts to possibly address the ever-increasing cost of medical care today - as evidenced by this article @ $7,000. per month. Think about it, if this same person were to have acquired a LTC program at $1200. per year when they reached 55, - not age 65 where the premiums would be “about” $2800.+++ per year. Add up the premiums paid, invested at 6% per year, and you will clearly see that the company would far exceed their received premiums within 12 months of payouts. The insurance company has a very simple solution: file bankruptcy, open another qualified “subsidiary”, and begin to sell LTC’s all over again.
Our illustrious Insurance Commissioner is an absolute and complete joke. I recently contacted his office - on a professional level - for a complete misrepresentation of an auto insurance company doing business in Washington. Mr. Caldwell of the SR also was informed of this event. Both parties of course did absolutely ZERO to protect the public. Please do not, for one single minute, believe that our illustrious elected Insurance Commissioner will do anything to protect us against even blatant practices.
Long Term Care policies are NOT the solution to anyone’s extended medical needs. People cannot pay enough, insurance companies cannot invest enough, and when the claims hit, then the victims cannot collect enough. “Enough is Enough” . Needless to say, it is best NOT to own anything, but hold your asset in an Irrevocable Trust - not a “Living Trust”, but a full blown, duly executed Irrevocable Trust. I published a book on Asset Protection that continues to enjoy a healthy sales volume and it contains the benefits of holding assets within this vehicle. LTC? is not the answer. Find a qualified attorney who KNOWS the benefits of this Trust, then allow them to assist you in a restructure before you need to “qualify” for “benefits”. It makes a huge difference.
leekinny on April 13 at 10:13 a.m.
The Insurance Commissioner wasn’t any help to us.
chump on April 13 at 1:15 p.m.
Personally, I can’t think of any federal law that helped a single citizen at all… in time or not!
Almost every time one of those federal “laws” passes, it means that the goon squad will run amok in the neighborhood plundering more resource from the tables of my neighbors. I just can’t see that as good, no matter who they’re allowing into the public trough.
leekinny on April 13 at 2:44 p.m.
Just a couple sets of laws among many….
laws controlling the meat packing industry….
or how about……
mine safety……
By golly! There’s a lot more I betcha.
chump on April 13 at 3:16 p.m.
Well… I don’t know if you’re aware lee, but there are 50 sovereign countries part of this here union… each, I’m certain, already has laws about such.
Thing is- the United Way has about a 17% administrative overhead. That’s 17 cents on the dollar that is donated goes to paper, lights, speakers, training aids and such. Want to take a guess at the admin costs of the feds? Just a ballpark, I’ll throw out… um… 30&. In order to “control” (and well put btw) the meat packing industry, or mines, you’re going to get a new department, a czar, a press secretary, clerks and IT folks, agents, lawyers, councils and cars.
In order to make the “controlled meat” any safer, its going to be costing your neighbors and kinfolk resources, plundered at gun point and threat of imprisonment.
Are you really willing to send an armed thug into your neighbor’s house to steal the money so inept bureaucrats can keep you from eating sour meat? Really?
johnclarke on April 13 at 3:24 p.m.
Lewis, what in the heck does your comment mean? Did you just really say that?
Flagged. Mods, are you out there ?
chump on April 13 at 3:41 p.m.
(sorry John, I thought it was a bit of humor amidst an emotive topic. I thought it funny)
johnclarke on April 13 at 3:56 p.m.
“Lewis on April 13 at 9:06 a.m.
another name for Obama long term care facilities. is gas chambers”
I am refering to this comment above, not anything you posted chump.
liarsinnews on April 13 at 4:13 p.m.
All Americans should feel blessed to have a gentleman like Jim who served with distinction. Thanks, Jim. All of this country’s veterans deserve a tip of the fedora as well.
jofas on April 13 at 5:54 p.m.
$7000 monthly merely to live in a home for this man. That’s not even providing healthcare.
Jump on the bandwagon to rob the dying! Ain’t it a shame how this man is getting robbed? For $7000 a month he could have a city block in the Philipines caring for him and his own reserved room in the local hospital when he needs it. But not here in America.
Is the State Attorney General going after people robbing the poor old folk? No?
It’s happening all across America. There are people getting robbed.
We don’t need any more programs with the Government involved. Their track record is stealing our money, not helping Americans.
mikemcdonnell on January 02 at 12:27 p.m.
“Long term care is the largest unsecured risk facing Americans today” – Money Magazine.
Some 75 million boomers are ill prepared to cover the costs of long term care especially since Medicare and health insurance does not cover the bulk of long term care and Medicaid only does once someone has spent their live savings to the poverty level.
According to http://www.guidetolongtermcare.com 70% of Americans 65+ will need long term care. Bye bye retirement income stream, life savings, inheritances. Financial Advisor Jonathan Pond says that 90% of estates are spent in this order: 1) nursing home 2) IRS 3) children 4) grandchildren 5) charity.
With only about 10% of those buying long term care insurance (http://www.nationalltc.com) the rest will spend their estates on paying for care and some will end up on welfare health care (Medicaid) after spending all their money.
Long term care costs will impoverish more boomers than any other expense. The Federal Deficit Reduction Act provided for every state to have a Partnership program to provide asset protection for those who buy qualified long term care insurance policies. http://www.partnershipforlongtermcare.com/