Monday, February 16, 2015

Baby Boomer's Long-Term Care Expenses, A Personal Responsibility

When the CLASS Act was repealed, medicaid spending is expected to increase dramatically. A lot of baby boomers were looking forward to the said program, however, legislators and executive body think that the program may not be feasible and will be facing enormous budget funding. Medicaid is the single largest payer of long-term care expenses, and with millions of boomers not having any plan on how to cover this expense, they resort to relying on the program and go beyond the point of engaging in an activity called medicaid planning just to be eligible for the program.
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Medicaid is a mean tested program and is aimed to provide assistance and support to Americans who are in the so-called poverty level, therefore you have to pass the poverty criteria before you can be eligible. Then why does middle income and even wealthy Americans be allowed to engage in medicaid planning to have their long-term care expenses be shouldered by the tax payers?

Kyle Krull, a lawyer from Kansan discussed his points of view regarding such act. He personally believe that medicaid is a social welfare program and was never intended to fund the needs of those who have enough assets, and believes that funding long-term care expenses is a personal responsibility. 

Kelly, a baby boomer himself, considered getting long-term care insurance to protect them from the medicaid spend down policy and allows them to leave inheritance to their loved ones.  This is the same advocacy that the government wants from each individuals, to be responsible for their own future and create a plan that will help them cover future long-term care cost. Based on longtermcareprimer, long-term care expenditure is financially devastating and everyone should saved adequately and prepare for a devastating event such as this to protect you and your family's financial and emotional security.

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