What Can Happen, and What Can You Do?

If you lose Medicaid coverage, you may be responsible for paying the full cost of your long-term care services. This situation can be financially challenging, as long-term care expenses can be significant. Finding an alternative payment source is an immediate concern, even if you plan to reenroll for Medicaid coverage. The application process takes some time to complete.

Tap Into Existing Resources

For the short term, you may need to seek family help. If you previously did Medicaid planning, you may tap into personal savings or sell assets. If you qualify, you may need to explore other government programs providing financial assistance for long-term care, such as veterans benefits. Medicare policies traditionally don’t cover long-term care, but they do cover some skilled nursing home care in specific situations for a limited time.

Negotiate with the Care Facility

If you can’t cover the full cost of your long-term care, you may need to negotiate with the care facility, nursing home, or in-home services to find a solution. Some facilities may be willing to work out payment plans to avoid resident churn or make other arrangements to help you continue care. It’s in your best interest to seek the counsel of a disability or elder law attorney specializing in long-term care to negotiate a solution.

Care Facility Discharge

When a short-term fix isn’t available, or negotiations to alter payment obligations fail, the loss of Medicaid coverage may result in discharge from the facility or denied in-home or community-based care services. However, a facility is legally obligated to provide notice before discharging a resident. During this time, the facility and your elder law attorney can work with you or your family to arrange a safe and suitable transition to another living arrangement.

Disenrollment Numbers

The number of Medicaid cutoffs for previously existing beneficiaries has surpassed one million, with the expectation to increase between 14 to 18 million. So far, Medicaid-dependent facilities, nursing homes, and at-home and community-based services are not widely affected. Still, the law of large numbers indicates disenrollment can significantly impact some beneficiaries requiring long-term care.

Many Medicaid beneficiaries who have been released due to procedural issues or technicalities anticipate being reenrolled. However, according to Medicaid, states have up to “twelve months to return to normal eligibility and enrollment operations.” The permitted time frame creates havoc for many Americans who rely on Medicaid benefits. However, it’s catastrophic for beneficiaries receiving Medicaid for long-term care as costs in a facility may range from about $4,000 – $8,000 per month, depending on the location.

If You or a Loved One Are in Long-Term Care

Understand that the unwinding of Medicaid continuous enrollment happens by state. Some long-term care beneficiaries may be unaware that continuous enrollment has stopped. Beneficiaries or their loved ones may neglect to return Medicaid paperwork or omit required documents consistent with current Medicaid qualifiers.

Some long-term care providers raise concerns that staff shortages in state agencies that handle reenrollment will create delays in processing required patient paperwork. The twelve-month grace period Medicaid provides to the states creates a slow reenrollment process that affects providers who continue to care for residents without reimbursement.

Consult a Disability or Elder Law Attorney

If you have been cut off from Medicaid and need to reenroll, an attorney can guide you through the general steps to ensure your benefits begin again as soon as possible. Your lawyer can help you confirm the reason for the discontinuation of benefits. It may be a failure to provide required documentation since the end of continuous enrollment or changes in eligibility requirements.

Once you understand why it has happened, your attorney can gather the necessary documentation for the reenrollment process. Documents may include:

• Proof of income
• Identification documents
• Proof of residency
• Social Security number
• Other documents your state’s Medicaid office requests

Your disability or elder law attorney can ensure all relevant financial documents and medical records are included to support your application. They may contact the state’s Medicaid office and advise them that you have been receiving long-term care benefits in an effort to flag your application for expedited processing.

Because short-term loss of benefits can make maintaining residency in a long-term care facility difficult, your attorney can strategize a short-term solution that addresses your unique situation.

Appeals and Advocacy

If your Medicaid reenrollment application is denied or you face challenges during the reenrollment process, an elder law or disability attorney specializing in long-term care can help you through the appeals process. They can gather additional information, advocate on your behalf, and represent you in administrative hearings or appeals.

If you are in long-term care and lose Medicaid benefits, specific consequences will depend on individual circumstances and your state’s regulations. Pay close attention to your Medicaid status. Disenrollment may continue to affect long-term care beneficiaries for some time due to the end of the requirement in FFCRA legislation requiring continuous enrollment.

Consult with one of our experienced elder law or disability attorneys specializing in Medicaid and long-term care issues. They understand the laws and regulations and help you reenroll in Medicaid, securing the necessary coverage to continue your long-term care benefits.

We hope you found this article helpful. Contact our office at (740) 947-7277 and schedule a free consultation to discuss your legal matters. We look forward to the opportunity to work with you.

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About half of US adults have gone without or delayed medical care in the last year due to a lack of affordability. Even with insurance benefits, many are still unable to afford the high cost. Approximately one-third of insured US adults are worried about being able to afford their monthly premiums. Additionally, 44% worry that they can’t afford their deductible. Health care costs are rising globally, but the US accounts for more than 40% of total global spending.

The Cost of Avoiding Treatment

Delaying or avoiding annual checkups or treatment for a seemingly minor illness may seem like an easy way to cut expenses. However, it may result in significant physical and financial costs later. For example, minor problems can become chronic illnesses as we age and eventually lead to the need for long-term care. This financial burden can carry over to other family members or result in losing a home or a lifetime of savings.

Complications from minor illnesses can easily be avoided with basic treatment. Otherwise, infections can worsen, potentially leading to hospitalization or other serious conditions.

Annual checkups and preventative care are the first line of defense against disease and provide early detection for better health-related outcomes. Routine cardiovascular exams and various cancer screenings save thousands of lives every year.

Preparing for Health Care Costs with Employee Savings Plans

It’s hard to predict the cost of doctor’s visits if you’re uninsured or have a high-deductible health insurance plan without copays. Health care bills are usually higher than anticipated, which creates financial strain and debt. Many people turn to family and friends to borrow money or deplete retirement accounts or home equity to pay medical bills. Unexpected accidents or illnesses can cause lasting financial damage.

One way to prevent medical debt is by contributing to a health savings account (HAS) or flexible spending account (FSA). A payroll deduction puts tax-free funds directly into your account to use for out-of-pocket medical expenses, including vision and dental needs. HSAs have annual contribution limits and are usually only available to those with high-deductible health insurance plans. FSAs may have a slightly lower annual contribution limit and a requirement to use the funds within that calendar year.

Creating Your Own Savings Plan

You can create your own savings account to use for medical and financial emergencies. Research different financial institutions to find the best interest rate. Then stretch your savings by comparing treatment prices on your insurance provider’s website or checking with customer service. You can also look at third-party sites like Clear Health Costs, FAIR Health, and Healthcare Bluebook for average costs.

Also, let your doctor know if you are having trouble affording your medications. They won’t offer low-cost options unless you tell them it’s a concern.

Many Americans avoid treatment regardless of income level and access to health insurance. Our elder law and estate planning attorneys help families plan ahead to avoid the financial devastation that can result from high health care costs in medical emergencies and the need for long-term care as they age. We hope you found this article helpful. Contact our office at (740) 947-7277 and schedule a free consultation to discuss your legal matters. We look forward to the opportunity to work with you.

The post The Cost of a Doctor’s Visit Is Out of Reach for Many Americans appeared first on Seif & McNamee.

Early January of 2023, the Department of Health and Human Services (HHS) released a Medicaid federal policy guide covering key dates for the end of the continuous enrollment provision no longer linked to the end of the public health emergency. In fact, the expiration has already occurred. As of April 2023, states may terminate Medicaid coverage and request a beneficiary redetermination.

Previous Spike in Medicaid Enrollment

Medicaid enrollment increased substantially during the pandemic. Now that continuous enrollment is ending, millions of Americans are at risk of losing their existing Medicaid coverage. Medicaid disenrollments happen at the state level, but states must comply with the federal rules to conduct renewals. Each state’s process may vary slightly.

The Kaiser Family Foundation (KFF), a non-profit focusing on national health issues, estimates between 5.3 to 14.2 million people will lose Medicaid coverage. HHS estimates as many as 15 million people may be disenrolled, including 6.8 million who may remain eligible but need to re-enroll.

Those who temporarily lose Medicaid coverage and re-enroll quickly are called “churn.” Churn may account for those individuals who experience short-term changes in circumstances or income that temporarily render them ineligible or face barriers in maintaining coverage because of the redetermination process that the end of the continuous enrollment provision brings.

Eligibility Checks

The federal government required states to develop plans to resume routine operations during the unwinding of the continuous enrollment process. Each state has renewal priorities and estimates for the time needed to complete the redetermination process and apply updated standards to reduce inappropriate coverage loss.

Streamlining renewal processes can help the continuity of coverage under the Affordable Care Act (ACA). Medicaid agency services can check eligibility through available data sources like the state wage databases before sending renewal forms or document requests to an enrollee. These electronic data checks can verify ongoing eligibility. However, of the 42 participating states, only 11 report completing 50 percent or more redeterminations using this process. The renewal process will be lengthy and cumbersome for most beneficiaries.

Medicaid Redetermination Process

Individuals who don’t renew automatically must go through the Medicaid redetermination process to continue receiving coverage. Absent the FFCRA provision for ongoing enrollment, the process will return to its annual renewal basis to ensure individuals receiving Medicaid benefits are still eligible.

The Medicaid agency will request that beneficiaries provide updated income, assets, and household information. They may also require the beneficiary to provide documentation such as pay stubs, tax returns, and bank statements to verify eligibility.

If the agency determines a beneficiary is no longer eligible for Medicaid, they may send a notice of termination and allow the individual to appeal the decision. If the beneficiary disagrees with the appeal decision, they can request a fair hearing to have their case reviewed by an impartial hearing officer.

Medicaid beneficiaries must respond promptly to any request for information from the Medicaid agency and keep their contact information current to receive important notices about their eligibility for benefits.

An Elder Law Attorney Helps with Redetermination Approval

An elder law attorney with disability experience can help during the Medicaid redetermination process in several ways, including:

• Assisting a beneficiary in preparing and submitting the necessary documentation and information to the Medicaid agency to support their continued eligibility for benefits. Preparation may include obtaining medical records, documenting changes in income or household composition, and responding to additional requests for information from the Medicaid agency.
• Helping a beneficiary understand their rights and options if their Medicaid benefits are terminated or reduced due to the redetermination process. Options may include appealing the decision, requesting a fair hearing, and advocating for the beneficiary’s rights and interests throughout the process. The attorney may represent and speak for them at an agency hearing.
• Assisting a beneficiary in navigating the complex rules and regulations of the Medicaid program, including any changes in eligibility criteria or program requirements. These changes may impact their ability to receive benefits, particularly since the end of the ongoing provision prompted requirements to change. Keeping current with program rules and regulations and any changes is particularly important for individuals with disabilities or chronic health conditions who may require ongoing medical care and support.

The prediction for millions of individuals to lose their Medicaid coverage, some temporarily and others more permanently, as the system returns to pre-pandemic annual eligibility reviews may be a costly disruption for some. For others, losing Medicaid coverage may be catastrophic to their health.

Medicaid is a joint federal and state program, and while the federal government has general rules which all state Medicaid programs must follow, each state runs its program. All states can now terminate Medicaid coverage and request a beneficiary redetermination process putting many at risk.

Contact one of our elder law attorneys at (740) 947-7277 to represent you if you are a Medicaid beneficiary facing the redetermination process. We protect your rights and access to vital healthcare services needed to maintain health and wellbeing.

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Reason Seniors May Continue Working

Many US adults plan to continue working in retirement. Some will work out of necessity to earn more money because of increased longevity, health care costs, and reduced Social Security payouts, while others will leave their career and strike out in a different direction, often pursuing a lifelong dream or spending time and energy in volunteer work or philanthropy. Whatever the senior individual’s pursuit, it’s clear that new patterns have emerged in the past 10 years, and it has a profound budgetary effect on individual US states.

Seniors Prefer to Age in Place

Baby boomers want to age in place and are committed to staying vital, fit, and independent for as long as possible. They want to die in their own homes, not in a hospital or long-term care facility. An  AARP survey of 2,826 US adults found that about 75% of people over 50 want to stay in their homes or communities for as long as possible.

The Impact on State Health Care Budgets

So why does this demographic and economic shift put a strain on so many state budgets? The answer is twofold; there is an increase in healthcare burdens while tax revenues decline since Americans tend to pay fewer taxes as they get older. This is due partially to senior retirement but also because seniors tend to spend less money than younger generations. This means more health services are needed, and fewer tax dollars are available to fund the programs.

Even the states that are best rated for aging, ranked by overall health, senior unemployment, life expectancy, and nursing home quality, are challenged because of health care costs. Rising healthcare costs have been taking a large portion of each state’s government budget and will most likely continue to do so.

Healthcare costs are also hitting baby boomers hard. There is a trend in people aged 50 to 65 having more incidence of disability, obesity, and diabetes, increasing their need for medical care and services. The average 65-year-old couple retiring in 2022 needs $315,000 to cover health care costs alone over the remainder of their lives. That is a 5% increase from the previous year, and with no substantive healthcare pricing reform on the policy horizon, that amount will continue to increase.

Have an Elder Law Attorney Speak with Your Financial Advisor

Now is the time to work with a legal and financial professional to work on a personal retirement plan that considers your future care needs. Our estate planning and elder law attorneys would be honored to work with you on this important planning step.

We hope you found this article helpful. Contact our office at (740) 947-7277 and schedule a free consultation to discuss your legal matters. We look forward to the opportunity to work with you.

The post States Prepare for Baby Boomer Retirement Challenges appeared first on Seif & McNamee.

How can AI Technologies in LTC be Addressed Responsibly?

AI technologies use a set of defined objectives to make predictions, recommendations, or decisions to perform tasks such as image, speech and pattern recognition, and natural language processing. They can use pre-programmed or self-learning algorithms to execute activities.

In LTC, AI is designed to improve remote monitoring systems, support decision-making software, automated communications, and virtual assistants interacting with older adults and their caregivers. Monitoring systems can be programmed to evaluate actions such as lying, sitting, standing, and walking to predict potential risks that suggest declining mental or physical health.

More Safety, Less Privacy

Automated alerts sent to the older person or their caregiver may ensure timely care to prevent further problems and delay or avoid the need for a nursing home facility. This should inspire a greater sense of safety and well-being. However, it also affects privacy, dignity, autonomy, and trust concerning care.

The adoption of AI in LTC has sparked an ethical debate. While the use of AI can lead to more effective and efficient decisions, it can also lead to harmful consequences when finding the proper solution for specific problems, defining the need for medical treatment, and stigmatizing old age, not to mention the danger of depersonalizing and dehumanizing care. Innovators, users, and stakeholders must look at the social and ethical consequences of AI technologies for older people, their environment, and society. Would we feel comfortable using AI technology for LTC for ourselves, parents, and grandparents? If a skilled nursing facility replaced a portion of its staff with AI-powered monitoring systems, would we feel secure about the quality of our loved one’s healthcare experience?

Frameworks, Principles, and Guidelines for Responsible AI Innovation

Studies highlight the importance of high-level principles, such as transparency, justice, fairness, and quality of care. Problems arise when there is too much room for interpretation to determine proper and ethical LTC uses. It’s unclear how AI design in LTC will continue to unfold. We still need more studies evaluating the potential risks and impact of AI technologies used by older adults and their caregivers. Technology is advancing rapidly, but we must take the time to weigh the advantages and disadvantages. Adopting it too quickly and relying on it too heavily initially could have severe consequences.

If you have any questions regarding what you have read, please contact our office to speak with an elder law attorney. We are happy to help you evaluate in-home, assisted living, and skilled nursing facilities in your area to ensure you or a loved one are getting the care you need and deserve.

We hope you found this article helpful. Contact our office at (740) 947-7277 and schedule a free consultation to discuss your legal matters. We look forward to the opportunity to work with you.

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According to a 2021 Gallup poll, only 46% of US adults have a will. This is a slight increase from 2016 when 44% had a will. Still, less than half of US adults have taken the time to create this important document. The poll also showed that older adults are more likely to have a will than younger adults. Of those polled who were over the age of 65, 76% said they have a will.

Dying Without a Will

If you were to die without creating a will, a state probate court would choose an administrator to manage the probate process for your estate and choose a guardian for any minor children you have, provided the children’s other biological parent is deceased or unable to care for them. The downside to this process is that the decisions the probate court and the administrator would make may not align with what you would want.

Dying without a will is known as dying intestate, and it can create problems beyond state laws dictating what happens to your assets and children. When your intentions aren’t known before you die, you set the stage for potential conflict among your family members and heirs. Without the will to use as a guide, the administrator has to guess what you would want and have the probate court approve it. This places an undue burden on the administrator, who is often a family member.

The administrator’s duties include the following:

• Locating all your living heirs and notifying them of your death
• Publishing a notice of your death so that any creditors you may have can submit their claims
• Compiling a list of your assets
• Paying off any debts and taxes that are owed
• Collecting any money owed to your estate
• Distributing any remaining assets to beneficiaries deemed valid by the probate judge

To avoid creating conflict that could cause rifts in your family, draft and execute a valid will spelling out how you want your estate distributed, who should become the guardian for any minor children, address funeral arrangements, and what should be done with your remains.

Dying With a Will

When you have a valid will, it makes life for your survivors much easier. In a will, you can appoint a person you trust to manage your estate after your death. The person you appoint is known as the executor or personal representative for your estate. A will acts as their guide.

Even if you have a will, your estate still has to go through the probate process. The first step in the process is for the named executor to file your will with the probate court. The court then determines the authenticity of your will. Upon confirming that your will is valid, the probate court officially appoints the executor, most likely the person named in your will, to carry out the administrator duties.

Avoiding Probate

Regardless of whether a person dies with a will or not, the probate process exists to help ensure the decedent’s bills and taxes are paid and that their assets are distributed fairly. Though this sounds good in principle, the probate process can be a long and expensive process. And since the process takes place in the court system, it’s open to the public and the will can be contested. For these reasons, some people create trusts for their assets before they die. Their estates can settle outside of probate court and there is less of a chance that family members can successfully contest the will.

Consult with an estate planning attorney about your options. You may be able to keep your estate out of probate and leave a better legacy for your heirs.

This article offers a summary of aspects of estate planning law. It is not legal advice, and it does not create an attorney-client relationship. For legal advice you should contact an attorney.

We hope you found this article helpful. Contact our office at (740) 947-7277 and schedule a free consultation to discuss your legal matters. We look forward to the opportunity to work with you.

The post Comparing Having a Will Versus Not Having One appeared first on Seif & McNamee.

The Benefits of Hybrid Long-Term Care Policies

“Hybrid” policies essentially combine life insurance or an annuity with LTC coverage. The unique benefits are also known as:

·       Accelerated death benefits

·       Living benefits

·       Life/long-term care

·       Linked benefits

·       Combo policy

Flexible Coverage

This type of policy will pay if you need nursing care, but if you never need that, then the policy functions like standard whole-life coverage. It’s a win-win. Say, for example, you buy a hybrid policy with a $100,000 death benefit. You eventually need $50,000 of that coverage to pay for LTC. Then, when you pass, your beneficiary would receive a $50,000 payout from what’s left of the original $100,000 coverage.

Tax-Free Benefits, Return of Premium, and Locked in Rates

Some plans offer tax-free death benefits to your heirs if your LTC benefits are not fully used or needed. They may return your premiums if you change your mind down the road. Premiums can be locked in from the initial purchase date, with a guarantee that they will never increase. Those who already hold a legacy policy with a large cash value may be able to roll that value over, tax-free, into a new hybrid policy.

Lump Sum Premiums

For those who can afford to pay premiums in a lump sum in advance, LTC coverage could amount to as much as twice the face value of the policy. Compare that with simply setting money aside for LTC expenses at a rate of five percent interest. It could take as long as thirty years to save for the payout the policy offers.

A Variety of Options

There is a wide range of coverage, depending on the policies. They may cover different services, delivered at home, in a facility, or both. The monthly or daily benefits can vary. Some policies require an elimination period (a delay between the time a doctor qualifies you for coverage and actual payment); some do not. Some provide inflation protection. Some provide adjustable rates, weighing how much the insured might need LTC  against the death benefit.

When choosing an insurance carrier, always remember that the company must have long-term financial stability to pay claims and remain in business for decades to come. You can check the company’s financial strength at four major agencies:

• M. Best Company
• Demotech
• Moody’s Investor Service
• Standard and Poor’s Corporation

To sort through all these intricacies, the National Association of Insurance Commissioners has issued a free and comprehensive Shopper’s Guide to LTC Insurance.

Estate planning and elder law attorneys can create a long-term care plan that incorporates a hybrid LTC plan in an irrevocable trust that will protect all of your bank accounts and real property (like your home) in the event you need long-term care services. If you are interested in protecting your savings and home, please contact our office at (740) 947-7277 and schedule a free consultation. We look forward to the opportunity to work with you.

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States Follow Federal Guidelines But Have Some Autonomy

Although Medicaid funding is a federal-state partnership, states administer the programs and have some flexibility in determining who to cover, delivery models, and payment methods for physicians and hospitals. States may apply for a Section 1115 waiver to experiment with different implementation approaches as federal statutes require; however, the Secretary of the US Department of Health & Human Services (HHS) determines advanced program objectives.

Medicaid entitlement has two basic guarantees. First, all Americans who meet Medicaid eligibility requirements are guaranteed healthcare coverage. Second, states receive guarantees for federally matched funds without a cap for enrollees’ qualified services. Under current law, nearly all Medicaid federal funding is open-ended, but this may change for cost containment.

According to the Congressional Budget Office (CBO), the federal government pays anywhere from 54 percent to 79 percent of each state’s annual Medicaid outlays, with the states’ picking up the remainder. Beyond enrollment expansion due to COVID-19 for the fiscal year 2022, nearly one-third of states saw upward pressure on spending due to increasing costs for managed care and provider rate increases.

Medicaid Coverage Continues to Evolve

Medicaid began in 1965 and was a cash assistance program for qualifying individuals or families. In the following years, Congress expanded federal minimum requirements to provide more new coverage types, particularly for children, pregnant women, and people with disabilities. The broader health care coverage of the Affordable Care Act (ACA) in 2010 expanded Medicaid to non-elderly adults with qualifying low incomes and continues to meet changing needs.

A Broad Range of Health and Long-Term Care Services

In addition to the Medicaid federal law service requirements, many states provide optional services. These services include physical therapy, prescription drugs, eyeglasses, and dental care. Medicaid expansion for adults is part of the ACA’s ten “essential health benefits,” which include the following:

• Ambulatory patient services
• Emergency services
• Hospitalization
• Pregnancy, maternity, and newborn care
• Mental health and substance abuse disorders
• Prescription drugs
• Rehabilitative and habilitative services and devices
• Laboratory services
• Preventative and wellness services
• Pediatric services

Medicaid covers the cost of long-term care, including nursing homes and many community-based long-term services. Over half of all Medicaid long-term care spending is for home and community-based services (HCBS), enabling seniors and those with disabilities to live more independently. Emphasis is shifting away from institutional settings, although intermediate care facilities for adults with intellectual disabilities remain a priority.

Privately Managed Care Plans for Enrollees

More than two-thirds of Medicaid beneficiaries account for privately managed care plan enrollments contracting with states to provide comprehensive services. Other enrollees receive their care in a fee-for-service system.

Most states cover long-term services through risk-based managed care arrangements to contain costs. These managed care organizations (MCOs) are comprised of various entities, as some involve physicians while others combine physicians, hospitals, and other providers.

The blended approach of public and private partnerships to provide Medicaid care allows each participating group to function at their highest level, integrating efforts instead of trying to solve issues outside their expertise.

Medicaid beneficiaries have far better access to healthcare than the uninsured and seek medical care before health problems become severe and more costly. The satisfaction ratings of Medicaid recipients are comparable to those rates for individuals with private health insurance.

Conclusions

Despite experiencing low income, the rate of Medicaid enrollment is similar to those with private coverage. Medicaid covers preventative, rehabilitative, and acute health care in addition to costly long-term care for millions of Americans.

Medicaid services account for one-fifth of healthcare spending and receive a lot of attention regarding:

• Capacity expansion to address addictions, in particular, opioids
• Refining payment and delivery systems
• Lowering prescription drug costs
• Refining eligibility requirements
• Increasing community-based long-term care services

Medicaid funding is a major financial support for hospitals, doctors, nursing homes, and many other jobs in the healthcare sector. Federal matching funds guarantee an open-ended basis to provide flexibility in supporting each state’s population’s healthcare needs.

Medicaid is an extensive program and varies by state, making it difficult to know what is available to beneficiaries or potential enrollees. Attorneys specializing in Medicaid and disability can help you understand how to benefit from your state’s programs. They can guide your application process, ensuring you receive the necessary benefits. Reach out to speak to our office and speak with an elder law attorney about Medicaid planning.

We hope you found this article helpful. Contact our office at (740) 947-7277 and schedule a free consultation to discuss your legal matters. We look forward to the opportunity to work with you.

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Rising prices may create a gap between your income plans and real bill-paying requirements. Withdrawing higher amounts from retirement savings can affect your retirement plan’s long-term sustainability. When planning bill pay strategies, remember prices typically don’t rise evenly across all sectors. Medical care costs have risen significantly in recent decades yet rose slower than overall inflation at 4 percent in the past year. However, fuel, food, and utility costs are up sharply for the same period.

Targeting a level of growth that exceeds an already accounted-for level of inflation is part of a good retirement strategy. Still, it can’t account for short-term excessive inflationary pressures. Taking distributions in the short term must remain in balance with maintaining long-term investment growth to preserve retirement income. There are steps you can take to achieve this balance.

Budget Review and Adjustment to Short-Term Spending

Finding ways to cut costs is the easiest way to avoid taking increased distributions or asset spending. Conserve energy use in your home and group errands that require car transportation to like locations to reduce gasoline use. In inflationary times, trimming discretionary expenses like dining out, vacations, or home renovation can help your budget. If you are already tightening your budget with these techniques, you may consider picking up some part-time work to close the income gap without upending your retirement planning.

Ensure Proper Wealth Allocations

Historically, stocks averaged annual returns to stay ahead of inflation. A balance of cash, bonds, ETFs, value stocks with dividends, and market sector investment rotations help maintain financial stability in uncertain times.

The S&P 500 is the lowest in a decade, decreasing over 17 percent. However, the Great Recession of 2007-9 saw the index down 38.4%. Historic market trends indicate that bullish investors will return to the stock market by mid-2023. Not assessing historical trends and re-adjusting your portfolio can make you miss a big chunk of the recovery and potential gains.

This graph of model asset allocations from T. Rowe Price’s investment strategy for retirees can help guide retirement investment strategy by general percentages.

T.Rowe Price

Maintain an Appropriate Stash of Cash

Managing short-term income with long-term growth makes a regular review of your plans necessary. Investing is never a set-and-forget process since personal needs change, corporations’ profitability fluctuates, and market realities change according to economic conditions. Particularly in the equities market, investing trends cycle by market sector. Even though inflation will reduce the spending power of cash on hand, cash availability is crucial for those unavoidable and unforeseen expenses.

Generally, a healthy cash position can cover one to two years of expenses in early retirement and keep you from withdrawing from your longer-term investments. This is particularly true when periods of inflation coincide with the declining market value of your investments.

Maximize Your Social Security Benefits

Work longer to obtain the maximum Social Security will pay based on your best thirty-five years of income. Earning more money to pay into the system will yield a larger payout (up to a point) when you claim your benefits. Delay your benefits up to age seventy, and you will receive a higher monthly payment.

During inflationary times, Social Security benefits automatically adjust to ensure purchasing power adjusts for inflation. If you have not yet claimed your benefits, remember the COLA maintains your benefits to adjust for inflation. When you are ready to claim your benefits, there are options depending on if you are married or divorced. Spouses and ex-spouses must carefully consider scenarios, particularly regarding survivor’s benefits, when one spouse predeceases the other. Divorced from a ten-year marriage for a minimum of two years and still single? You may be entitled to file for benefits based on an ex-spouse’s earnings. Bankrate reviews scenarios for Social Security spousal benefits.

Consider Inflation as You Update Broader Financial Plans

Effective retirement strategies rely on accurate estimates of household spending and adaptation to new norms. This number will change yearly, particularly in an inflationary environment. Your retirement strategy will require adjustments depending on personal circumstances, market conditions affecting your investments, and prevailing inflation rates.

As retirement planning links closely to your overall estate and legacy planning, it is crucial to coordinate the two. An estate planning attorney or an elder law attorney can help to ensure any trusts you create will have sustainable funding and make other recommendations about retirement plans and how they affect your estate planning goals.

Working with a financial professional or using financial planning tools while creating your estate plan can provide insights. As inflation continues to present economic challenges for household expenditures, it’s important to review your existing retirement plans regularly, as you do for your estate plan. Ultimately, an appropriate allocation in stocks that receive a regular review in combination with managed spending and flexibility provide the most important tools retirees can implement to fight against long-term inflation.

We hope you found this article helpful. Contact our office at (740) 947-7277 and schedule a free consultation to discuss your legal matters. We look forward to the opportunity to work with you.

The post Managing Retiree and Near-Retiree Benefits to Combat Inflation appeared first on Seif & McNamee.

Many law groups provide both elder law and estate planning services. This overlap of law practice specialties can create confusion, particularly because elder law attorneys also participate in estate planning (elder law estate planning). However, not all estate planning attorneys take part in aspects of elder law.

Elder Law Focuses on Seniors

The concern of elder law is to ensure older adults can live their most healthy, protected, and financially secure lifestyles as they age. Planning may include anticipating future medical needs such as long-term care, qualifying for Medicaid without depleting all assets, creating a living will, and legally naming individuals to guide your medical decision-making if you become incapacitated. In addition to aging seniors, elder law may also focus on the needs of war veterans and individuals with disabilities and assist with conservatorship or guardianship if needed.

Areas of elder law specialization include:

• Asset protection
• Long-term care planning
• Elder law trust administration
• Decision making for an incapacitated person
• Estate planning and settlement
• Disability and special needs planning
• Conservatorship or guardianship
• Elder abuse

Elder Law May Involve Many Family Members or Caretakers

When practicing elder law, your attorney will often involve your close family and friends to work most effectively. Protecting the aging process of a loved one is usually a multigenerational effort addressing medical, financial, long-term health care needs, emotional support, and day-to-day living needs like shopping, transportation, and going to doctor appointments. These aspects combine to create the most healthy and secure aging environment and lifestyle. Elder law can also address veteran benefits, family home protection, special needs loved ones, estate administration, probate, and long-term nursing home care claims.

Looking at Law from a Senior’s Perspective

Comprehensively, elder law focuses on legal issues, complex regulations, and laws that vary by state that impact seniors. An elder law attorney has a unique understanding of the personal impacts aging brings and how it can physically, socially, and financially affect your loved ones, making them vulnerable. They are familiar with the various circumstances and decisions confronting older loved ones. The approach is holistic. While living, they will assist in navigating legal matters and tap networks of care professionals like social workers, health groups, and psychologists. Designated family members are trusted to help seniors coordinate financial matters and the long-term care they may require.

In truth, elder law is essential to all seniors, not just those with complex life situations, and will require refinement of goals as you age. Whether you want to protect yourself and your assets, address your special needs, a second marriage, high-value estate, or adult children who are financially irresponsible, an elder law attorney can help you manage the processes within the confines of the laws in your state. Elder law in action can protect you from the vulnerabilities that present themselves in your later stage of life.

Estate Planning Basics

Conversely, estate planning concerns asset protection, retirement planning, business succession planning, and distribution of estate assets after your death. Estate planning also concerns minimizing taxes after your die, identifying a personal representative to carry out your estate plan, and navigating legal tasks. Your estate plan also seeks to simplify probate requirements, name guardians for minor children, and prepare long-term assistance for loved ones with special needs.

Essential aspects of a comprehensive estate plan include:

• Your will and perhaps a pour-over will
• A health care proxy
• A power of attorney
• Your living will
• A trust – revocable living trust or irrevocable
• Estate tax returns
• Documents for transfer of assets

Your estate planning attorney can help guide you as you name your representatives and trustees, identify the right choice of guardian for minor children, identify IRA, 401(k) and life insurance beneficiaries, create business succession plans, guide personal property distribution, and make charitable contributions.

Estate Planning Requires Periodic Review

Estate planning is not a one-time task. Life events may trigger a change in your estate plans, such as buying stocks, selling your current home, purchasing a rental home, getting a divorce or remarrying, losing a loved one, or gaining a new child or grandchild. Reviewing your estate plan frequently is critical.

If you do not develop a complete plan to manage your estate assets after your die, the probate court will take over the process of your property distribution. State intestacy laws will apply in the absence of a will to identify inheritors. If you skip estate planning, you will forgo your opportunity to provide for family and loved ones as intended. With estate planning, you can decide where you want your money to go, who will watch over your minor children, and even the care you prefer if incapacitated via a living will. Estate planning also enables your family to avoid the probate process, which can be lengthy and expensive.

Talk to your family about your needs as you age. Identify an estate planning lawyer who also understands elder care planning in your state. Be sure to find the right fit and establish a trusted and comfortable relationship with them to make plans that address your unique needs and desires for your remaining years. We hope you found this article helpful. Contact our office at (740) 947-7277 and schedule a free consultation to discuss your particular situation.

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