Remember that Medicare is the major health insurance program for the elderly.  Recipients of Medicare are typically one of the following: 1) people 65 years of age or older; 2) those who qualify for disability income; or 3) those who suffer from end-stage renal disorders.  The Medicare program covers many expenses for hospital and institutional care, doctor payments, home health care and rehabilitative services, ambulance service, hospice for dying patients, equipment, limited medication, operations, some drug costs, etc.

Since Medicare doesn’t cover completely the costs listed above, private insurance carriers (e.g. AARP) offer supplemental policies for costs not covered by Medicare.  These supplemental policies are often referred to as “Medigap” policies because they are designed to bridge the gap between the actual cost of care and the amount paid by Medicare.

Some seniors believe they receive better coverage by not using traditional Medicare and/or a supplemental policy.  Instead, they elect a Medicare Advantage Plan (often referred to as a “Medicare Replacement Plan”) for their health care coverage.  With these plans, Heath Maintenance Organizations (HMOs) offer health coverage options that are Medicare approved but administered by private companies.

The decision for our elderly to use traditional Medicare and a supplemental policy versus the Medicare Advantage Plan (HMO) services is a complex topic that I will address in a later article.  For now, realize that there is a difference between the combination of traditional Medicare/supplemental insurance and the coverage typically provided by HMOs, and that the decision on which to use is unique for each individual.   For example, sometimes HMOs are better at covering an individual’s prescriptions; however, traditional Medicare along with a supplemental policy may provide better nursing home rehabilitative coverage.

Each year, there is an open enrollment period during which Medicare recipients may choose a different Medicare option.  For 2012 Medicare coverage, the open enrollment period runs from October 15 to December 7th, which differs from last year’s enrollment period.  While exceptions exist, know that it may be impossible and/or come with a financial penalty to switch your Medicare if you do not do so during this period.

Choosing the right plan is not easy.  One helpful resource is an organization called S.H.I.N.E. (Serving Health Insurance Needs of Elders). SHINE is a volunteer group that serves the Department of Elder Affairs for the state of Florida.  SHINE volunteers are available to help seniors wade through the many Medicare options. SHINE’s website is:  http://www.floridashine.org/ or you may call 1-800-96-ELDER (1-800-963-5337). Another great resource to explore is Medicare’s website:  http://www.medicare.gov/.  Other helpful resources available to assist the elderly sift through the Medicare options include elder law attorneys, geriatric care managers, and social workers.

Don’t be afraid to think outside the box on how to jog a loved one’s memory. I hope this post helps those of you that are encountering similar situations.

By: Jason Penrod

What is Life Care Planning?  Well, how many of you have ever had unanswered questions about the health care system, health insurance, long-term care, the various government benefit programs, and relatively new initiatives like Medicare Advantage Plans?  Have any of you ever had thoughts about outliving your money or being able to pay for the needs of a spouse, child, parent, or grandparent?  These questions are the “What Ifs of Aging.”

If you have ever considered these “What Ifs of Aging,” you are not alone.  There is a lot of confusing and conflicting information floating around accompanied, at times, by misinformation.  Consider the many sources through which information may be sought and/or received. I would venture to say that many of us receive information from family, friends, politicians and government employees, health care professionals, sales people of every sort, financial planners, and every kind of media imaginable.  While these sources are often very knowledgeable, some information sources may harbor bias and some may have a narrow scope.

Of course, valid concerns abound about whether a doctor could give an opinion on one’s potential to outlive one’s money or if the banker will be able to advise one on the purchase of the proper health insurance policy.  As an Elder Law attorney, I would be disingenuous if I thought that I alone could recommend the perfect investments, the exact health insurance, the cure to a disease, etc., for all clients and their families.

However, I am positive that I know who does provide solid consultation regarding investments, health insurance, and medical needs.  Since the professionals I associate with reflect directly upon me, I must be cognizant of such and truly trust those whom I incorporate into my practice.  Like the hub of a wheel, a Life Care Planning attorney must have the best experts in each required field at his fingertips and be able to work side by side with them.  I call this the “Dream Team Concept.” 

The beauty of being the hub, and not being the one who receives a commission for selling a particular type of insurance, for example, is that the Life Care Planning attorney is outside these types of motivations.  The Life Care Planning attorney’s perspective is truly a holistic approach that has as its goal the comfort of the client and the client’s family. Through a clear lens and a symbiotic relationship with trusted professionals, there can be an assurance that the client’s well-being is truly at heart.

If you are interested in learning more about Life Care Planning, I strongly recommend that you speak with an Elder Law attorney who practices in that specific area.

Warner sponsors this conference annually to educate the public on various estate planning issues.  Obviously, it is also desirable to remind people that institutions of higher learning thrive when people remember such institutions, like Warner, in their charitable giving. 

I’m always astonished and appreciative of people that donate monies to educational institutions.  While I used student loans to help finance my undergraduate education at Niagara University, and later my law school education at Vanderbilt University, I was blessed to be the recipient of a few scholarships.  I can only imagine the price of my investment were it not for donors that made those scholarships available.

Once a month, I receive an alumni magazine from each of my two alma maters.  It seems like each school is always making innovations and requesting donors to contribute to make these advancements happen.  At this point in my life, where I am an expert in student loan repayment, I simply don’t have the resources to substantially donate to my alma maters.

However, I expect to be able to contribute more in the future and feel obligated to “pay it forward” for future students.  After all, were it not for the considerate donors that made my educational experience more affordable, I may not be writing this article.

Reflect on the institutions of higher learning that have influenced your life.  Please know that there are ways of donating monies that can provide substantial tax benefits.  In addition, some people choose to include these institutions as part of their estate plan by naming them as heirs of their estate. 

Perhaps you do not feel comfortable today making a sizeable donation and would be more comfortable contributing a percentage of your estate.  Please know that there are tax advisors and knowledgeable estate planning attorneys that can assist you in charitable giving.

P.S.  Thank you for the positive feedback on my last article; not to mention the many congratulations I received regarding the birth of my niece.  Your warmth continues to remind me why I am blessed to call Lake Wales home.

After many hours of helping my sister through labor, I saw life come in to this world firsthand and literally heard her first cries. Moments later, I was asked by my sister and her husband to cut the umbilical cord (By the way I had not expected this assignment). A few hours later, I felt like the most privileged man in the world as little Adrianna buried her head in my chest as she slept.

A couple of days later, I found myself giving her a bottle and learning why it’s a good idea to have a towel draped on your shoulder while burping a baby. Meanwhile, I’m afraid to stop supporting her little head because I don’t want it to fall off. Next thing I know, I’m assisting in the smelly ritual of the diaper change. What a whirlwind!

Now don’t worry. I have not traded my legal column for a child rearing column. So please don’t write any questions pertaining to day care. Please also refrain from dropping off your children at our law office for babysitting services.

Rather, I write this article to show how a newborn changes one’s life. This isn’t even my own child and I’m catching myself making baby sounds and already playing the role of the overprotective uncle. I can only imagine how my sister feels with this overwhelming sense of responsibility.

My sister was already a worrier. Now she worries about an innocent and fragile being that depends on her and her father for everything.

While we pray the future goes smoothly, Christina and her husband need to execute some estate planning in order to protect Adrianna. They need to sign documents that will clearly state who would raise Adrianna if something horrible happened. They also need to predetermine who will handle the finances to make sure Adrianna is provided for and protected. Through proper planning, they can alleviate some of their worries.

Yes, there are so many things to consider. But for now, we just want Adrianna to sleep through the night so that her parents can get some rest. If you are similarly suffering from sleepless nights due to your family’s new addition, you may want to meet with an estate planning attorney to make sure your affairs are properly in order.

P.S. Adrianna, thanks for being the absolute best Christmas gift a family could ever receive.

Many attorneys will complain about the frustrating clients they have.  While I am not immune from complaining, I am fortunate to admit that I help some very special and caring people.  In fact, I often learn a tremendous amount from them. 

Some time these lessons are about sacrifice, how to honor a spouse or parents, or how to care unconditionally.  Recently, I called a client to give my condolences on the passing of his mother.  We talked for a bit and he was genuinely concerned how I was doing.  I believe I shared with him that I am chasing that elusive goal of having a healthy balance in life.

A week later, I received an inspiring book from this client that hopefully will help me in my quest.  This event really showed me what a special person he is.  Here, he had just lost his mother and he takes the time to try and give me some support.

Thanks for being you David and for further demonstrating how privileged I feel to do what I do.

By: Jason A. Penrod

I have a dozen or so clients in Sebring currently. I’m fortunate that they make the long drive to Lake Wales to come utilize my services. 

However, I know it’s often difficult for the elderly to make that drive.  For some time, I’ve been thinking that I could help more people if I made myself available in Sebring more often.  

So beginning in the New Year, I plan on being available on a more frequent basis in Sebring.  I’m hoping to have more details soon.  If you have any helpful ideas or thoughts, I’d like to hear them.

By: Jason A. Penrod

Tomorrow is Labor Day and it’s a time to take a little break from our busy days and reflect.  As such, I would just urge each of us to think about our legal documents and ask whether they are up to date.

In other words, has anyone passed away or become ill .  Are they mentioned in your documents?  Do you still want to have people making decisions that you have listed in important documents…or have your circumstances changed somewhat?

Just take some time and reevaluate. 

Have a blessed Labor Day Weekend!

By: Jason A. Penrod

When evaluting long term care insurance policies, I would suggest that one reviews the clause that discusses who may provide care at an insured’s home under the policy.

The issue that I have run in to often with my clients, especially those families that are caring for a loved one with dementia, is whether payments to anyone not associated wth a health care company will be covered.  For instance, many policies state that they will only pay claims if theto a certified home health care company. 

But what if you have a neighbor or someone at church, that has a nursing background and can handle the care needs, but is not employed per se with a home health care company?  Some policies will provide that you can use money for the person’s care in any way you see fit, while many stipulate that they will only pay a certified home health care company.

For liability purposes, it’s understandable why some policies stipulate such.  However, for economic and practical purposes, you may know that a potential caregiver will do a fine job but also realize that the policy may not cover that expense.  Especially when one has dementia, perhaps one only needs someone to sit with the loved one and make sure some relatively basic needs are met.  Do you need to pay a licensed nurs $17/hour for that care or can you pay someone a lesser amount to provide the same care?

As always, it pays to review those details in the fine print.

By: Jason A. Penrod

We’ve all been there.  Choices and alternatives can sometimes exhaust us to the point where we suffer paralysis and just decide not to take any action at all. 

For instance, think about the person that needs a car, has trouble making decisions, and is dropped off in the middle of a huge car dealership.  Are you sweatting for that person yet?

In the elder law context, this often happens.  But it’s important to not let decision paralysis prevail.  If you don’t take any action, then no action will occur.  Often, it’s important to try and give simple examples and try to explain things in different ways.  Patience needs to prevail to make a sound decision…but do take the time and make that sound decision.

By: Jason A. Penrod