Pennsylvania Tells Boomers To Own Their Future
When it comes to sales pitches, I qualify as a mild cynic. My explanation to others is that, while I’m not “from Missouri,” the “show me” state, my grandfather on my mother’s side was.
With this as background, I recently opened an imposing looking envelope addressed to me from the Commonwealth of Pennsylvania Office of the Governor and wondered what it contained. The letter enclosed from Governor Ed Rendell began “Dear Fellow Pennsylvanian: I am writing you about one of the most important issues we all need to consider: planning ahead for our long term living needs.”
The enclosed brochure urged “Send or call for your FREE Own Your Future Planning Kit.”
My guess is that Governor Rendell probably does not need to worry much about his long term living needs since my understanding is that elected officials have provided for their own long term care insurance so this was likely a rhetorical “we all need to consider.” Also, I reflected that I might be a bit young to be receiving the warning, though from what I can tell, it seems the letter was
focused largely on the so-called baby boomers and not the senior population. The State would like us to invest in long term care insurance and other financial products to deal with long term care. Along with this, it would like us to take a hard look at how we plan to handle the later senior years. This is understandable and comes as a backdrop to the “Own Your Future” campaign which is a collaborative effort of the federal Centers for Medicare & Medicaid Services (CMS), the Office of the Assistant Secretary for Planning & Evaluation (ASPE), and the U.S. Administration on Aging (AoA) supported by the National Governors Association.
According to the Pennsylvania Department of Public Welfare, overall Medicaid spending not limited to spending on the elderly is projected to increase 22.8% costing the Commonwealth $1.1 billion by the end of fiscal 2009 and the federal government has consistently backed away from the program wherever possible, leaving the States with remaining liabilities.
This was not the first I had heard of the “Own Your Future” campaign. It had been described in attorney Neil Hendershot’s blog, www.paelderestatefiduciary.blogspot.com, discussed on at least two of the attorney listservs on which I participate, and was referenced favorably in the report of the Pennsylvania Department of Aging in connection with its recently held Town Meetings.
Planning for the future is, of course, critical. The cost of long-term care is very high and Medicare generally does not pay for it which is why a spend down is necessary before Medicaid will pick up the cost of long term nursing home care. Care at home under Medicaid except for low income persons is practically non-existent and one of the major selling points of long term care insurance is the potential for an at-home benefit. As the letter stated, “If we do not plan ahead, covering the cost of these services can be a major burden to us and to our families.”
“Own Your Future” carries with it shades of “personal responsibility,” which, depending on how you view it could be described either as requiring citizens to look out for themselves or the government baling on the weakest members of society at a time when they need help the most.
Regardless how the philosophy is viewed, one of the scariest statements that can be made by a senior is “we will <avoid facing the long term care issue now and> face that when it comes.” Is long term care insurance the answer? With this as with many other questions, the answer depends on individual circumstances. The product has been described as complex and expensive. Applicants need to consider whether they can afford it now, whether their income into their senior years will continue to handle the premiums, whether the company is reliable, the benefit amount, the specific policy terms, and even whether, because of health reasons, they might be denied coverage even if it is desired. Insurance companies have followed the government mailing with marketing campaigns of their own.
The “Own Your Future” Planning Kit is a 27 page booklet that can be downloaded from the Internet at www.longtermcare.gov. Click on the left side of the screen at “Awareness Campaign.” In addition to discussion of long term care insurance the booklet covers the need for legal documents, discussions with family members, and government programs for home modifications for repairs and accessibility.
About the Author Janet Colliton
Esquire, Colliton Law Associates, P.C. Janet Colliton has practiced law for over 38 years, 37 of them in Chester County, Pennsylvania, a suburb of Philadelphia. Her practice, Colliton Law Associates, PC, is limited to elder law, Medicaid, including advice, applications and appeals, and other benefits planning including Veterans benefits, life care and special needs planning, guardianships, retirement, and estate planning and administration.