Veterans Benefits:
The over-65 and now disabled wartime veteran may qualify for much-needed money to pay for medical bills. Althea West, Gerontologist is a graduate of the Veterans Benefit Institute, Chicago, IL and is qualified to provide advice to the over-65 disabled wartime veteran so that he or she may obtain up to $1,842 per month in medical assistance. Homebound veterans needing in-home health care may qualify for up to $1,427 per month. Even the surviving spouse of a wartime veteran may qualify for long-term care cost dollars. The VA can pay a surviving spouse who needs regular "aid and attendance" up to $998 per month.
Elder law (provided by the Reuter Law Firm) is legal advocacy devoted to the issues of aging and long-term care. VA benefits, estate planning, tax planning, Medicare/Medicaid, and disability law are within the elder law focus.
VA Aid & Attendance and the Medicaid Bomb:
Dan Reuter (Elder Law Attorney) warns there might be a firestorm of litigation caused by the current "annuity seller-assisted living facility joint promotions." The 2006 changes in the Medicaid Act create huge Medicaid penalties when a senior citizen tries to avoid paying long-term care expenses by gifting their assets to other family members. Nonetheless, many seniors are being sold on giving their assets away to qualify for VA benefits.
The growing popularity of the VA Aid & Attendance program has been fueled by annuity sellers promoting their products with the enthusiastic cooperation of assisted living facilities. The annuity seller looks at the frail veteran as an annuity prospect. The assisted living facility provides access to the senior citizen resident to stretch the resident's ability to pay the costs of facility care.
Tragically, the senior citizen and family are often not aware of the "Medicaid penalty trap" that is caused by certain asset transfers. The annuity seller emphasizes that the resident can transfer assets with no Veterans Administration penalty - but the Medicaid penalty is either ignored or misrepresented. Medicaid penalizes any gifts within five years of an application for assistance.
The assisted living facility and the annuity sales organization present the annuity seller as offering a "free service" for wartime veterans. The truth is that the annuity seller may be compensated by a commission of up to 12% for their "free services."
According to national assisted living statistics, 90% of their senior residents who apply for a VA benefit will need full skilled nursing home care in less than three years. The Medicaid penalty rules will deny payment to anyone who has given away assets during the prior five years. Mr. Reuter predicts that thousands of families will face huge fees due to early termination of VA benefit-related annuities and/or denial of Medicaid benefits due to this "Medicaid Bomb."
"Who are the families going to sue when Mom or Dad cannot get Medicaid?" asks Attorney Reuter. He envisions that families will feel deceived by both the assisted living facilities and the annuity sellers. Ominously, Reuter forecasts, "The assisted living facility will be the easiest target. The facilities are experts in Medicare, Medicaid, and long-term care issues. They have a duty to warn their residents about the Medicaid penalty. The assisted living facilities are burying their heads in the sand regarding their joint promotions with the annuity sellers. When the Medicaid Time Bomb goes off, they will have nowhere to hide."
Elder law attorneys know the legal issues of long-term care. They counsel clients with Alzheimer's, Parkinson's, etc. to obtain the benefits of Social Security, Medicare, Medicaid, and veterans benefits. Attorneys need to work with the assisted living facilities to stop this Medicaid Bomb from exploding and to protect them from the approaching legal firestorm.
