Posts Tagged ‘Medicare’

Communicating End-of-Life Wishes Pays Off Where Aggressive Treatment Is the Norm

Tuesday, October 11th, 2011 by Moore McLaughlin

A new study finds that when medical personnel know what kind of care a patient wants at the end of life, Medicare can be spared significant sums and the patient is more likely to die at home rather than in a hospital, at least in certain areas.

The study, published in the October 5, 2011, issue of the Journal of the American Medical Association, found that in regions of the U.S. that tend to spend the most on end-of-life care, patients who have “advance directives” cost Medicare about $5,600 less per person.  (Advance directives allow patients to communicate their end-of-life wishes if they are unable to do so themselves.)  These patients’ quality of life also appeared to be better; they were more likely to receive hospice care and to be at home when they died.

But the differences in spending and care did not hold up in regions of the country with low- to average end-of-life expenditures.  The researchers speculated that in these areas, less aggressive care at the end of life is already the norm and more in line with what many patients want.  In high-spending regions, by contrast, an advance directive may embolden caregivers to go against the local norm of aggressive treatment and prolonged hospital care.   In 2006, treatment during the last year of life accounted for more than one-quarter of Medicare expenditures.  

Advance directives typically include a “living will” that gives instructions regarding treatment if the individual becomes terminally ill or is in a persistent vegetative state.  It may contain directions to refuse or remove life support in the event the individual is in a coma or a vegetative state, or it may provide instructions to use all efforts to keep the person alive, no matter the circumstances.  Most participants in the study who had advance directives specified that they wanted to limit treatment.

“[The study] absolutely highlights some of the reasons why you should both talk to family, friends and physicians about the type of care you might want to receive, should you be unable to make your own decisions,” said Lauren Hersch Nicholas, the study’s lead author and a health economist at the University of Michigan.

Second Study: Aggressive Treatment Doesn’t Prolong Life

A related study just published in the medical journal The Lancet has found that nearly one of every three Medicare beneficiaries had an operation in their last year of life. 

Operations were more likely in regions with a greater availability of hospital beds and higher levels of Medicare spending.  But the higher rates of surgery didn’t necessarily pay off.  The regions where doctors were more likely to operate had higher patient death rates.

“This level of surgical intensity doesn’t seem to be having much in the way of benefit for the population,” Dr. Ashish Jha, the study’s author and an associate professor of health policy at the Harvard School of Public Health, told ABC News. “Our sense is that there are probably lots of unnecessary procedures that go on at end of life.”

Each state has its own laws on advance directives.  Caring Connections, a site run by the National Hospice and Palliative Care Organization, offers state-by-state information on advance directives

Advance medical directives are an integral part of the estate planning services provided by elder law attorneys.  To speak with a qualified elder law attorney  and for more on health care decision-making, contact elderlaw attorney Jill E. Sugarman at 401-421-5115 ext. 215 or by e-mail at JSugarman@McLaughlinQuinn.com.

What a Good Long-Term Care Policy Should Include

Wednesday, August 17th, 2011 by Moore McLaughlin

As nursing home and long-term care costs continue to rise, recent legislation has made it more difficult to qualify for Medicaid to pay for nursing home costs. Long-term care insurance can help cover expenses, but long term care insurance contracts are notoriously confusing. How do you figure out what is right for you? Elderlaw attorney Jill E. Sugarman provides the following tips to help you sort through all the different options.

Find a strong insurance company. The first step is to choose a solid insurance company. Because it is likely you won’t be using the policy for many years, you want to make sure the company will still be around when you need it. Make certain that the insurer is rated in the top two categories by one of the services that rates insurance companies.

What is covered. Policies may cover nursing home care, home health care, assisted living, hospice care, or adult day care, or some combination of these. The more comprehensive the policy, the better. A policy that covers multiple types of care will give you more flexibility in choosing the care that is right for you.

Waiting period. Most long-term care insurance policies have a waiting period before benefits begin to kick in. This waiting period can be between 0 and 90 days, or even longer. You will have to cover all expenses during the waiting period, so choose a time period that you think you can afford to cover. A longer waiting period can mean lower premiums, but you need to be careful if you are getting home care. Look for a policy that bases the waiting period on calendar days. For some insurance companies, the waiting period is not based on calendar days, but on days of reimbursable service, which can be very complicated. Some policies may have different waiting periods for home health care and nursing home care, and some companies waive the waiting period for home health care altogether.

Daily benefit. The daily benefit is the amount the insurance pays per day toward long-term care expenses. If your daily benefit doesn’t cover your expenses, you will have to cover any additional costs. Purchasing the maximum daily benefit will assure you have the most coverage available. If you want to lower your premiums, you may consider covering a portion of the care yourself. You can then insure for the maximum daily benefit minus the amount you are covering. The lower daily benefit will mean a lower premium.

It is important to determine how the daily benefit is calculated. It can be each day’s actual charges (called daily reimbursement) or the daily average, calculated each month (called monthly reimbursement). The latter is better for home health care because a home care worker might come for a full day, one day, and then only part of the day, the next day.

Benefit period. When you purchase a policy, you need to choose how long you want your coverage to last. In general, you do not need to purchase a lifetime policy three to five years worth of coverage should be enough. In fact a new study from the American Association of Long-term Care Insurance shows that a three-year benefit policy is sufficient for most people. According to the study of in-force long-term care policies, only 8 percent of people needed coverage for more than three years. So, unless you have a family history of a chronic illness, you aren’t likely to need more coverage. If you are buying insurance as part of a Medicaid planning strategy, however, you will need to purchase at least enough insurance to cover the five-year lookback period. That way you can transfer assets to your children or grandchildren before you enter the nursing home, use the long-term care coverage to wait out Medicaid’s new five-year look-back period, and after those five years have passed apply for Medicaid to pay your nursing home costs (provided the assets remaining in your name do not exceed Medicaid’s limits).

If you do have a history of a chronic disease in your family, you may want to purchase more coverage. Coverage for 10 years may be enough and would still be less expensive than purchasing a lifetime policy.

Inflation protection. As nursing home costs continue to rise, your daily benefit will cover less and less of your expenses. Most insurance policies offer inflation protection of 5 percent a year, which is designed to increase your daily benefit along with the long-term care inflation rate of 5.6 percent a year. Although inflation protection can significantly increase your premium, it is strongly recommended. There are two main types of inflation protection: compound interest increases or simple interest increases. If you are purchasing a long-term care policy and are younger than age 62 or 63, you will need to purchase compound inflation protection. This can, however, more than double your premium. If you purchase a policy after age 62 or 63, some experts believe that simple inflation increases should be enough, and you will save on premium costs.

For more information on long-term care insurance, contact Jill E. Sugarman, Esq. at 401-421-5115 ext 215 or by e-mail at JSugarman@McLaughlinQuinn.com.

Resources for seniors and their caregivers

Monday, August 10th, 2009 by Moore McLaughlin

ResourcesThe attorneys at McLaughlin & Quinn, LLC’s Law For Life constantly strive to provide the greatest amount of relevant information to Rhode Island’s seniors and their caregivers.  The following are several links to various governmental websites that can be accessed to learn more about issues affecting seniors.  Bookmark this post as a reference tool.  Also, look at the Resources section of the McLaughlin & Quinn, LLC website for even more links.  As always, feel free to contact Attorney Jill E. Sugarman, Managing Attorney of McLaughlin & Quinn, LLC’s Law For Life with any questions you may have.

Department of Health and Human Serivces Adminstration on Aging

Administration on Aging Elder Rights Protection

Consumer Protection for Seniors

Financial Crimes Against the Elderly

National Long-Term Care Ombudsman Resource Center

Rhode Island Department of Human Services – Services for Elderly Rhode Islanders

Rhode Island Department of Human Services – Division of Veterans Affairs

 You may reach Jill E. Sugarman, Esq. at 401-421-5115 or by e-mail at jsugarman@mclaughlinquinn.com.