helping aging parents

[Mimi]

PDQ

I'm currently trying to figure out how much they need to retire.  The big question mark is healthcare cost.  How do I figure out how much they need for healthcare?

Their income after they stop working will only be from SS.  They estimate it to be $1k total per month.  I assume this will qualify them for medicaid? and food stamps?  They do have some savings (5-figure), would this disqualify them from these?

I'm not really sure what to tell them.  Sorry but you need to work until you die?  Ugh!

[cajunmom]

My mom's savings haven't affected her SS income or Medicaid eligibility and she has greater than $100k from my dad's life insurance. She does have to pay for a supplemental insurance plan, so you may want to help them research that. My mom had one plan that was around $230 a month, she just switched to one that's around $100 a month but it's not as good of a plan. Are you sure they'll need food stamps? I'm not sure about the qualifications for that.

[Mimi]

Mar 26, 2015 16:36:45 GMT -5 @rennido said:

What's the housing situation? Was your dad a vet?

They are currently renting. But they are considering using their savings to buy a house, which may be a good idea since primary home is exempt for medicaid (I think).

No, he's not a vet.

[Mimi]

Mar 26, 2015 16:39:27 GMT -5 cajunmom said:

My mom's savings haven't affected her SS income or Medicaid eligibility and she has greater than $100k from my dad's life insurance. She does have to pay for a supplemental insurance plan, so you may want to help them research that. My mom had one plan that was around $230 a month, she just switched to one that's around $100 a month but it's not as good of a plan. Are you sure they'll need food stamps? I'm not sure about the qualifications for that.

Huh. I read something like $3k max in assets to qualify. With their expected income in retirement of $1k per month, they will probably need foodstamps. Rent/housing expenses is almost $1k.

[Pom]

Every state will vary for cost of supplemental insurance plans. We had just signed FIL up before he passed away for his supplementals..$144/mo for Medigap Legacy Medicare supplement through BCBS. $34/mo for Wellcare RX Plan Classic. $400 deductible for his medications.

My suggestion is to contact the Council/Commission on Aging in the county where they live and they can assist you with enrollment and estimated costs.

[MixedBerryJam]

I'm just going to ditto Pom, who I know has tons of experience with navigating the elder health care system, too. Definitely contact of the Council on Aging for their town. They'll have a ton of resources you won't even know you needed. That's in addition to a lot of social programs to get them out of the house, if they are so inclined. If they're anything like my mom's Senior Center (I think they're generally locally administered, so of course there's a great deal of variation) you'll find out about eligibility for Meals on Wheels, assistance getting to appointments, an inspection of their home to find out about ways to make it safer and easier to keep up with ... the list goes on and on. Good luck to them and you.

[Deleted]

You can check what SS will be if you go to SSA.gov. You will need SSN and a few other items.
If it is as low as $1k - which doesn't seem right at all but I digress - they should qualify for low-income senior housing, extra help for Medicare Part D, possible income subsidy for Medicare, and access to state programs for prescription help (in my state it's called Senior Gold and PAAD) that limit OOP expenses for Rx and provide for lower or no premiums.
You can not have a Medicare supplement and Medicaid, as Medicare has to be primary in order to get a supplement, and Medicaid is primary for those who have both. Also, check utility providers. In my state if you qualify for PAAD/SG you may also qualify for heating assistance.

[Deleted]

Now that I'm at work I can provide links

For estimating benefits:
secure.ssa.gov/acu/ACU_KBA/main.jsp?URL=/apps8z/ARPI/main.jsp?locale=en&LVL=4

Extra help for Medicare:
www.medicare.gov/your-medicare-costs/help-paying-costs/get-help-paying-costs.html

www.medicare.gov/your-medicare-costs/help-paying-costs/extra-help/level-of-extra-help.html

www.medicare.gov/your-medicare-costs/help-paying-costs/medicare-savings-program/medicare-savings-programs.html

Pharmaceutical Assistance:
www.medicare.gov/pharmaceutical-assistance-program/state-programs.aspx

www.medicareinteractive.org/uploadedDocuments/mi_extra/SPAP-Chart.pdf

LIHEAP (utility assistance)
www.acf.hhs.gov/programs/ocs/programs/liheap

Low Income Senior Housing
portal.hud.gov/hudportal/HUD?src=/topics/information_for_senior_citizens

[Deleted]

Also, Medicare Part B is $104.90/month if they don't qualify for any help to lower their Part B premium. Part A is free for nearly everyone (~10 years/40 quarters of work history makes it free), and you can't forgo Part B coverage - that's how you get doctor services and a whole bunch of other services. It is automatically deducted from SS, if you are collecting SS.
There are some states/areas where, if you enroll in certain Medicare Advantage plans, your Part B premium is lower. However, they're usually HMOs and you can't see just any doctor that accepts Medicare. The problem with Medicare Advantage is that once you're in a plan, and don't have extenuating circumstances like moving and leaving a service area, or the plan discontinuing service in a service area, you are stuck with Medicare Advantage forever if you are not healthy enough to qualify for a Medicare supplement. Then again, the Medicare supplements you want (F, G, N) are anywhere from ~$90-$200/month depending on where you live (NY and some areas of FL are higher) and increase as you age (in most states), so they are likely unaffordable for them.
Part D prescription plans start at ~$12/mo, and have annual deductibles anywhere from $0-$320. My state has ~30 plans though, so you can find one to fit just about anyone's needs.

[Mimi]

Mar 27, 2015 9:05:37 GMT -5 @mrsspunky said:

Also, Medicare Part B is $104.90/month if they don't qualify for any help to lower their Part B premium. Part A is free for nearly everyone (~10 years/40 quarters of work history makes it free), and you can't forgo Part B coverage - that's how you get doctor services and a whole bunch of other services. It is automatically deducted from SS, if you are collecting SS.
There are some states/areas where, if you enroll in certain Medicare Advantage plans, your Part B premium is lower. However, they're usually HMOs and you can't see just any doctor that accepts Medicare. The problem with Medicare Advantage is that once you're in a plan, and don't have extenuating circumstances like moving and leaving a service area, or the plan discontinuing service in a service area, you are stuck with Medicare Advantage forever if you are not healthy enough to qualify for a Medicare supplement. Then again, the Medicare supplements you want (F, G, N) are anywhere from ~$90-$200/month depending on where you live (NY and some areas of FL are higher) and increase as you age (in most states), so they are likely unaffordable for them.
Part D prescription plans start at ~$12/mo, and have annual deductibles anywhere from $0-$320. My state has ~30 plans though, so you can find one to fit just about anyone's needs.

Thanks for all the information.  If you ask me what you just said, I would say I don't know.  LOL.  This sounds so complicated.

[Deleted]

How old are your parents now? Are they over 65 or getting close?

[nomad100]

Mar 27, 2015 9:10:53 GMT -5 Catlawdy said:

It's worth a consult with a lawyer that does elder law to plan out what they need to do to access various benefits. They will know the ins and outs of the process and how to get things rolling.

I was going to suggest this too.

I work with some Elder Law attys and when I am reading their client alerts on all this stuff my eyes cross because it is complicated and so detail oriented.  

[Mimi]

Mar 27, 2015 9:24:04 GMT -5 @mrsspunky said:

How old are your parents now? Are they over 65 or getting close?

They are 65 and 61.  They want to work at least 5 more years.  Their SS benefits would only be ~$1k total because total years worked would only be ~20yrs (immigrants) and low-median income.

[Deleted]

Ok, so whomever is older should qualify for Medicare now.
Do you know if he/she is already on Medicare? Do they work for an employer of over 20 employees or under 20? Do they have insurance through their employer at all?

[Mimi]

Mar 27, 2015 9:36:47 GMT -5 @mrsspunky said:

Ok, so whomever is older should qualify for Medicare now.
Do you know if he/she is already on Medicare? Do they work for an employer of over 20 employees or under 20? Do they have insurance through their employer at all?

My dad (65) is not on medicare.  His employer has over 20 employees.  His health insurance is fully paid by the employer.  My mom was just recently added on my dad's insurance, but I'm not sure how much they pay for hers.

[Deleted]

Ok, so your dad doesn't need to take Medicare Part B until he is ready to retire.
www.medicare.gov/Pubs/pdf/02179.pdf

Just checking out medicare.gov will help you a lot, specifically medicare.gov/what-medicare-covers/index.html