newjerseynewsroom.com

BY WARREN BOROSON

NEWJERSEYNEWSROOM.COM

BOROSON ON MONEY

Question: What’s the fastest-growing age group?

Answer: People over 100.

In fact, there’s a TV program where the host regularly interviews people over 100. The program is now backed up – way, way up – with people over 100 waiting to be interviewed.

An eldercare lawyer, Peggy Sheahan Knee, mentioned this in a recent talk to make a point about the drastic aging of the population and the need for us to be concerned about paying for health care as we live longer and longer.

“Well, when I’m very sick and very poor,” some people say, “I’ll just shoot myself.” Trouble is, if you’re as forgetful as I’m getting to be, you may not remember where your damn gun is. Besides, it’s normal for people to want to live on and on.

Medicare, the government program, isn’t a panacea, said Knee. It’s mainly for medical care, not for long-term custodial care. And that’s what many older people need if they can’t do various ordinary activities.

Health-care costs can be staggering, Knee warned. A home health aide may cost $20-$22 an hour in New Jersey. If a home isn’t appropriate for disabled people (lots of stairs, for instance), there are assisted-living facilities, which even provide meals. These may cost $5,000-$6,000 a month – or even $10,000 a month.

Beyond that is skilled nursing facility, Knee went on. Here, it’s $13,000 a month. If a couple are both in such facilities, it’s $25,000-$26,000 a month.

“Some people are worried about paying estate taxes,” said Knee, who runs The Knee Law Firm in Hackensack. “But they could use up all their assets just taking care of their health.”

All About Medicaid

Medicaid is one shield against your becoming destitute because of medical treatment.

Medicaid, Knee continued, is run by the states and funded by both the federal and state governments. In New Jersey, Medicaid is administered by the county welfare boards.

Recipients must be U.S. citizens or resident aliens -- and live in New Jersey. They must also be 65 or older, unless blind or disabled.

New Jersey has two Medicaid programs: the “medically needy” program and the Medicaid Only program.

In medically needy, someone may keep $4,000 a month of assets, but has no in-patient hospital care under Medicaid.

Under Medicaid Only, someone may keep only $2,022 a month, but receives in-patient hospital care.

“And it can’t be a penny over,” Knee warned.

But someone who is over the limit for Medicaid Only may qualify for Medicaid needy.

“Income” includes wages, Social Security, pensions and annuities, alimony, interest and dividends.

Excluded resources – what you can keep -- include the principal residence, if occupied by (a) the institutionalized person, (b) the community spouse, (c) a sibling with an equity interest in the home who has resided there for at least one year prior to institutionalization, (d) or by an unmarried child under 21 or a blind or disabled child, or by a child who has resided in the home of the parent for at least two years and provided a level of care sufficient to keep the parent out of a nursing home for two years.

Also excluded: automobile, personal effects and household effects, wedding and engagement rings, medical equipment, burial fund, term life insurance, whole life insurance (cash value less than $1,500), and inaccessible resources. Example of the last: a house co-owned by a sibling, who refuses to sell.