Average Cost of a Private Nursing Home Room Tops $87,000 a Year

Posted on February 28, 2012 by admin

The cost of long-term care continues its upward climb, according to the 2011 MetLife Market Survey of Nursing Home, Assisted Living, Adult Day Services, and Home Care Costs. Private room nursing home rates rose 4.4 percent to $87,235 a year or $239 a day, while assisted-living facility costs jumped 5.6 percent on average to $41,724 a year or $3,477 a month.

After leveling off last year, the cost of adult daycare services went up by 4.5 percent to $70 per day. But the average
cost of home health aides and homemaker/companion service rates remained unchanged at $21 and $19 per hour, respectively.

The survey also reports on the cost of a semi-private room in a nursing home, which also increased 4.4 percent to $214 a day, or $78,110 a year. The cost of a semi-private room in an Alzheimer’s wing rose from an average of $75,190 to $81,030 annually.

Once again, the highest rates for a private nursing home room in 2011 were found in Alaska, where the average cost dropped slightly from $687 a day to $655 a day. The lowest rates were found in Louisiana (with the exception of Baton Rouge and the Shreveport area), at and average of $141 a day. New Jersey averaged $286 to $316 a day.

The cost of assisted living was the highest in the Washington, D.C., area, at $5,757 a month and the lowest in Arkansas (except for Little Rock) at $2,156 a month. In New Jersey, the rates came to $4,622. Average home health care aide services ranged from a high of $34 an hour in Rochester, Minnesota, to $14 and hour in the Shreveport area of Louisana. New Jersey was $21 an hour. Adult daycare services were highest in Vermont at an average of $148 a day and lowest in the Montgomery, Alabama, area, at $29 a day, a $2 drop from 2010. New Jersey fell near the middle at $84 a day.

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Prenuptial Agreements Can Be Estate Planning Tools

Posted on January 23, 2012 by admin

As more and more people marry more than once, prenuptial agreements have become important estate planning tools. Without a prenuptial agreement, your new spouse may be able to invalidate your existing estate plan. Such agreements are especially helpful if you have children from a previous marriage or important heirlooms that you want to keep on your side of the family.

A prenuptial agreement can be used in a second marriage when both parties have children. For example, suppose you get remarried and both you and your spouse have children from a prior marriage. You want your house to pass to your children, but without proper planning and an agreement in place, your spouse could inherit the house and then pass the house to her children when she dies.

It is important to make sure your prenuptial agreement is valid. Following are the major factors needed to ensure this:

  • In writing. To be valid, a prenuptial agreement must be in writing and signed by both spouses. A court will not enforce a verbal agreement.
  • No pressure. A prenuptial agreement will be invalid if one spouse is pressured into signing it by the other spouse.
  • Reading. Both spouses must read and understand the agreement. If a stack of papers is put in front of one spouse and he or she is asked to sign quickly without reading, the agreement can be invalidated. The spouse must be given time to read the document and consider it before signing it.
  • Truthful. Both spouses must fully disclose assets and liabilities. If either spouse lies or omits information about his or her finances, the agreement can be invalidated.
  • No invalid provisions. While the spouses can agree to most financial arrangements, a prenuptial agreement that modifies child support obligations is illegal. If an agreement contains an invalid provision, the court can either throw out the entire agreement or strike the invalid provision. Similarly, if the terms of the agreement are grossly unfair to one spouse, the agreement may be invalid.
  • Independent counsel. Some states require spouses to seek advice from separate attorneys before signing a prenuptial agreement. Regardless of whether it is required by state law, it is the best way to make sure each spouse’s interest is protected.

Though a prenuptial agreement is signed before marriage, similar agreements can sometimes be made after the wedding (called a post-nuptial agreement). To find out if a pre- or post-nuptial agreement is right for you, feel free to contact us.

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Make Sure Your Power of Attorney Complies with Federal Privacy Law

Posted on January 16, 2012 by admin

A power of attorney (POA) and a health care proxy are two of the most important estate planning documents you can have, but in some instances they may be useless if they don’t comply with the federal privacy law. 

A POA allows someone you designate (your “agent” or “attorney-in-fact”) to make decisions for you if you become incapacitated. A health care proxy specifies who will make medical decisions for you. For these documents to be effective, your agents may need to be able to access your medical information.  

However, medical information is private. The Health Insurance Portability and Accountability Act (HIPAA) protects health care privacy and prevents disclosure of health care information to unauthorized people. HIPAA authorizes the release of medical information only to a patient’s “personal representative.” 

HIPAA can be a problem especially if you have a “springing” power of attorney. A springing POA doesn’t go into effect until you become incapacitated. This means your agent doesn’t have any authority until you are declared incompetent, but under HIPAA, the agent won’t be able to get the medical information necessary to determine incompetence until the agent has authority.  

To make sure your agent doesn’t get caught in this “Catch-22,” your POA and health care proxy should contain a HIPAA clause that explains that the agent is also the personal representative for the purposes of health care disclosures under HIPAA. You should also sign separate HIPAA release forms that explain what medical information can be disclosed, who can make the disclosure, and to whom the disclosure can be made.

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Medicare Fraud Costs Billions: Here’s How You Can Help

Posted on January 9, 2012 by admin

Medicare fraud is often in the news, but what is it, exactly? Fraud costs Medicare an estimated $60 billion a year and contributes to the rising cost of health care for all Americans. Once you understand what is involved, you can help prevent fraud. 

Medicare fraud occurs when providers mislead Medicare into paying for services it shouldn’t be paying for. Examples of fraud include: a health care provider—such as a doctor or hospital—billing Medicare for services you never received; a supplier charging Medicare for equipment you never got; or someone using your Medicare card to get medical care or supplies.

You can take steps to prevent fraud. 

Ø  Never let anyone use your Medicare number. Be very careful before giving your number out to anyone. Be suspicious of anyone who offers you free medical equipment in exchange for your Medicare number.

Ø  Always check your medical bills, Medicare summary notices, and explanation of benefits for any inaccuracies.

Ø  Understand what Medicare does and does not cover, so you can question a provider who says you can get coverage for something that is not normally covered.

Ø  Only accept services that you need.

Ø  Be suspicious of a provider that advertises free consultations to people with Medicare, uses pressure or scare tactics to sell expensive tests or services, or doesn’t charge copayments without first checking on your ability to pay. 

If you suspect fraud, you should call the Health and Human Services Office of Inspector General’s hotline at 800-HHS-TIPS (1-800-447-8477), or e-mail the Inspector General’s office at HHSTips@oig.hhs.gov.

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