“One LTCI Producer’s Take on Nursing Home Closures,” by Romeo Raabe

Quote:

“Over 550 nursing closed in the US in the past 4 years, 328 in just the past 20 months.  More than half the closures were in just 9 states, Wisconsin among them.   Brown County, WI has lost 4 in the past 4 years with the last one closing next month at the corner of Webster Ave and Mason St in Green Bay.  This hits even harder in rural areas with few (if any) alternatives.

“Nursing homes make their money two ways – most call themselves rehab centers and their cash cow is (very) short term recovery care following a hospital stay and is paid for by Medicare.  The other part of their business is people living in nursing homes, and at $11,000 a month most residents go broke and end up on a welfare program called Medicaid.

“Their rehab care is getting shorter and shorter (the cash cow is near death) and Medicaid pays way less than the cost to keep a resident causing homes to go broke and close.

“Most LTC is done at home or in the assisted living facilities – but each year less and less of them accept Medicaid.  If you can’t afford home or assisted living facility care, it’s the welfare nursing home for you.  And now there are less and less of them.  Do you see the problem?  Where do you go when you cannot afford LTC?  When there is no room at the inn push comes to shove and perhaps your children have a spare bedroom, a hospital bed in the living room, or one of them retires early (they can surely afford to do that) and care for you.

“What does this mean to your clients who are planning on Medicaid paying for their LTC?  The No Vacancy signs are lighting up, its late at night, and you are tired of driving.  If you (or your clients) cannot pay for the care they will need when their health changes there will be wailing and gnashing of teeth.

“If you call yourself a financial planner, and a fiduciary, are you addressing this need that many of your clients will face?  Will they be prepared?  Do you have the best advice and products to cover LTC at the lowest out of pocket cost?  If this is not your cup of tea, why not work with an expert with over 26 years of LTC planning under his belt.  Someone who can make you look good with your clients.

“Unless you can be all things to all clients, consider using TheLongTermCareGuy.com to help out.  Please bring up LTC planning with your clients, even the wealthy buy LTCi so they can leave their wealth to whom they wish.  Clients with little nest egg need advice too.  A client at age 50, in poor health, with little money, can buy a 1 year policy for LTC of $9000 a month for $214 annually – that is $17.83 a month.  Most anyone can afford that.  I have solutions for nearly every health or financial situation.  Let me help you help your clients.”

 

LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform):

This brief essay by Romeo Raabe, The Long-Term Care Guy in Green Bay, Wisconsin, elicited the following response from a local elder law attorney:

“This was just excellent! May I make this into a Whitepaper for distribution to my prospective clients? I would put your picture and contact information on that, and I would send you a draft for your approval first. Thank you!”
Medicaid planning in retreat? Proof lawyers and LTCI producers can work together.