Tuesday, May 1, 2018

7 Ways to Judge a Retirement Community’s Financial Health



Retiring
By PETER FINCH MARCH 9, 2018

Here are seven key items to focus on when considering a community’s finances.


1.    Occupancy. If 90 percent or more of a homes rooms are full  and have been that way for the past few years  that suggests its doing something right. This is especially important at C.C.R.C.s promising refunds, because you (or your heirs) often don’t get the money back until someone has moved into your old unit.

2.    Rate increases. Lately, most C.C.R.C.s have been increasing their monthly fees by about 3 to 3.5 percent a year, said Justine Vogel, president of RiverWoods, a New Hampshire retirement community. If you see anything above that, ask for an explanation. Similarly, if you find a home where monthly fees have remained unchanged for several years, it may be struggling to maintain its occupancy rate.

3.    Debt rating. Many communities issue bonds to fund expansions or other capital improvements, and Fitch Ratings evaluates them. Ratings of AAA to BBB are considered “investment grade” and should bring a measure of comfort to potential residents.

4.    Profitability. You want a community that usually brings in more cash than it spends. When looking at a retirement home’s financial statements, pay special attention to cash operating expenses as a percentage of cash operating revenue, suggested Amy Castleberry, a director at the investment bank Ziegler and a member of the Financial Advisory Panel of the Commission on Accreditation of Rehabilitation Facilities. A number below 100 means the home is generating enough cash to cover expenses. Communities whose debt gets an investment-grade rating from Fitch have a median score of 96.1 percent.

5.    Capital improvements. Is your community spending enough on its upkeep? One way to gauge this: Find the line for capital spending on its annual financial statement and compare this with the line showing depreciation. Ms. Vogel said she generally liked to see spending equal to at least 50 percent of depreciation, though she conceded that could be way too low if the community hadn’t spent anything in previous years. “You need to combine that info with a visit to the campus,” she said. “How does it look? Does it look like they haven’t replaced the carpet in a while? Is the dining venue outdated?”

6.    Reserves. Find out if the C.C.R.C. performs a regular actuarial valuation, which is a scientific study of its future risks and liabilities. The actuary’s report will give you a sense of whether the community has the reserves, income and cash flow to meet its promise of housing and health care for the rest of your life. You don’t have to read the whole report, said A. V. Powell, an actuary in Atlanta who specializes in retirement communities. “You want to know: Does the study say this community is in satisfactory actuarial balance?” Note that the report’s summary will reveal what kind of fee increases you can expect in the coming years.

7.    Residents’ role. How involved are residents in making major financial decisions? Do they have a couple of seats on the board or at least an active advisory council that works closely with management? “So many residents have extensive backgrounds in finance,” said Brad Breeding, a founder of the MyLifeSite service. “Is it being utilized?”


Sunday, April 15, 2018

One State’s Quest to Introduce Long-Term Care Benefits



Your Money
By RON LIEBER MARCH 9, 2018

OLYMPIA, Wash. — For a few weeks this year, the rarest of things seemed like it was about to occur. A state, in this case Washington, was working to pass a bill that would institute a new payroll tax to help cover the cost of a much-needed service: long-term care in a nursing home, in a personal residence or elsewhere in the local community.
Rarer still: At least a couple of Republicans, including one of the bill’s primary sponsors, supported the tax proposal.

Eligible adults were to receive $100 a day from the revenue raised by the tax, for up to 365 days — not typically enough to pay the full cost of nursing home care but potentially helpful in keeping less affluent older people from obliterating their savings and ending up on Medicaid.
Alas, it was not meant to be. As the need to finalize the legislation approached, AARP, citing various unanswered questions, came out against it. Many of the questions involved who would qualify as a caregiver and could receive the $100 per day. Which just goes to show that no matter how great the desire to help America’s aging population, figuring out exactly who should get what and under what circumstances is an enormously complicated issue.

We have a big problem paying for long-term care in this country, although most people don’t wake up to the challenge until it affects their family directly. One in three people who live until at least 65 will reside in a nursing home at some point, according to the Kaiser Family Foundation. Once they settle in, most will be short on money. Medicaid covers at least part of the bill for 62 percent of people who live in a nursing home.

Given that states help pay for Medicaid, legislators are increasingly worried about the growing number of older residents, many of whom don’t even have enough money saved for a comfortable retirement, let alone nursing home bills that can sometimes top $100,000 per year.
A coalition of groups in Washington State saw the generational tidal wave crashing, and they got the ear of two state representatives in particular. The mother-in-law of one, Laurie Jinkins, a Democrat, is 92, has dementia and just qualified for Medicaid.

The father of the other, Norm Johnson, a Republican, used up much of his savings paying for in-home aides for Mr. Johnson’s mother. The elder Mr. Johnson spent so much on care for his wife that by the time he required care of his own, he, too, wound up on Medicaid.
So Ms. Jinkins and Mr. Johnson sponsored a bill calling for a payroll tax on state residents of 0.49 percent, or $22.30 a month on average. (Washington has no state income tax but does have a statewide sales tax.) People who paid into the system over a certain number of years would ultimately become eligible to access the $100-per-day benefit if they could not complete three or more activities of daily living, like dressing or bathing.

They could then take that $100 and put it toward in-home care, adult day care, nursing home fees or similar expenses. After 365 days, they would exhaust the benefit. At that point, Medicaid would still be an option.

Why would a member of the typically tax-averse Republican Party support such a measure? After all, people are supposed to save for their old age, and they can buy long-term care insurance to protect themselves, too.

Mr. Johnson, a former teacher, school counselor and principal, drew on his own life to answer the question.

“We had five sons in my family,” he said. “There is no way we could afford long-term care insurance and raising five kids and paying for a house and school.”

He knows that younger adults might resent the idea of elected officials reaching deeper into citizens’ pockets to pay for benefits that are probably decades away for them. But he said that his experience hd afforded him some perspective.

“You never think you’re going to get old,” he said. “But guess what? I didn’t think that either when I had kids at home, and now I will be 80 in July.”

The way Ms. Jinkins and Mr. Johnson tell it, AARP was supportive until suddenly it was not. “The two people who represent AARP here, neither one had darkened my door,” Mr. Johnson said. “And then the last day, they threw a wrench into things.”

When I contacted AARP, I was told that the group had a number of concerns with the bill and had been expressing them all along. Perhaps the thorniest one involved the question of who qualified as a caregiver and how he or she would become eligible to collect to benefit.
Eligibility is not in dispute in licensed adult day care centers or nursing homes. But many people prefer to stay in their own homes as long as they can, and in some parts of Washington there are not enough licensed in-home caregivers. That means family members pitch in, often sacrificing their own wages to do so.

Everyone in the coalition that supported the bill wanted the people who need care to be able to use the $100-a-day benefit to pay relatives. But not everyone is qualified to provide care, especially if doing so requires lifting a person or treating certain conditions.

Would a spouse have to take a 75-hour class at a cost of hundreds of dollars to qualify as a caregiver? If so, was that too much to ask? How best to train a novice? Could family members train for, say, only 15 hours just to learn the specific skills they needed to help a relative? And if in-person training was required, who would care for an ailing spouse in the meantime?

“The bill needed too much work, and we had too many questions and not enough answers,” said Cathy MacCaul, AARP’s advocacy director in Washington.

Without those answers, AARP would not support the bill as written. And without its support, and with emails arriving from AARP members encouraging “no” votes, lawmakers chose not to move the bill to a full vote.

The State Legislature met in a short session this year. Next year, its session will be longer, allowing more time for negotiation. All sides vow to redouble their efforts in the meantime. But the episode is a reminder of just how slowly new financial benefits creep across the country, hopping from state to state as new legislation is passed.

Hawaii offers some help to certain caregivers, but the Washington bill would establish the first payroll tax where the proceeds go to long-term care more broadly. It could be the difference between some families spending nearly all of their money and ending up on Medicaid or having something left after an older person’s death.

But precisely because it would affect so many people, it’s not going to happen very quickly. “Could we all have dropped everything in our lives and answered all these questions sooner?” asked Doug Shadel, AARP’s state director in Washington. “Maybe. But we’re inventing a new social system to fix a difficult social problem.”

He also offered an olive branch of sorts.

“These two legislators, I know they are frustrated, but I think they showed a lot of courage putting this forward as a bipartisan effort,” he said. “I think they’re going to be seen as pioneers going forward.”

Sunday, April 1, 2018

New Medicare Cards Are Coming Soon

The Centers for Medicare & Medicaid Services (CMS) is in the process of issuing new Medicare Beneficiary Identifiers and Medicare cards to help protect the identities of Medicare beneficiaries. The Medicare Access and CHIP Reauthorization Act (MACRA) of 2015 requires CMS to remove beneficiaries’ Social Security Numbers (SSNs) from Medicare cards by April 2019. CMS will be mailing new Medicare cards to current beneficiaries starting in April 2018. All beneficiaries should receive a new card by April 2019. The National Center on Law and Elder Rights (NCLER) has prepared a summary of what advocates need to know about the new Medicare cards to help beneficiaries prepare.

Thursday, March 15, 2018

Dementia & Driving Resource Center (Part 2)


Reprinted from: https://www.alz.org/care/alzheimers-dementia-and-driving.asp?WT.mc_id=enews2018_02_27&utm_source=enews-aff-28&utm_medium=email&utm_campaign=enews-2018-02-27


Planning ahead
For people in the early stages of Alzheimer's, it is never too soon to plan ahead for how you will get around when you can no longer drive. Putting a plan in place can be an empowering way to make your voice heard.

Tips for planning ahead
Remember that each situation is unique. What works for one person may be different from what works for another. You can get the information and support you need from the Alzheimer's Association at 800.272.3900.
  • Involve family and close friends in the plan.
  • Confront resistance. Empathize with those who are uncomfortable having the conversation and stress the importance of preparing for the future.
  • Develop an agreement for all to share that includes practical safety steps, such as a periodic driving assessment, a GPS monitoring system for the car, and alternate transportation options.

Transportation options
Driving is not the only transportation option available. There are many options people can explore that will allow them to continue to travel independently and remain in control of their mobility.
  • Transition driving responsibilities to others. Arrange for family members and friends to provide transportation.
  • Arrange a taxi service.
  • Use special transportation services for older adults. Access local resources using the Eldercare Locator at www.eldercare.gov or use our Community Resource Finder to search for transportation services.
  • Reduce the need to drive by having prescription medicines, groceries or meals delivered.

Driving evaluation
At the earliest stages, a person with Alzheimer's disease may begin to have difficulty with complex tasks such as driving. Although family and caregivers can watch for signs of unsafe driving, a proactive strategy would be to get a comprehensive driving evaluation by an occupational therapy driving rehabilitation specialist. The evaluation provides a more objective understanding of the current impact of the disease on driving capacity and results in a plan of options. The goal is always to retain the highest level of independence and mobility in the community. Initial recommendations may include strategies to reduce driving risk during the early part of the disease. The occupational therapist can offer strategies specific to the individual's goals and needs. The American Occupational Therapy Association website includes a national database of driving specialists as well as a wealth of resources for both persons with Alzheimer's disease and their families.  

Thursday, March 1, 2018

Dementia & Driving Resource Center (Part 1)


Reprinted from: https://www.alz.org/care/alzheimers-dementia-and-driving.asp?WT.mc_id=enews2018_02_27&utm_source=enews-aff-28&utm_medium=email&utm_campaign=enews-2018-02-27

Signs of unsafe driving
Determining when someone can no longer safely drive requires careful observation by family and caregivers.
The following list provides warning signs that it's time to stop driving:
  • Forgetting how to locate familiar places
  • Failing to observe traffic signs
  • Making slow or poor decisions in traffic
  • Driving at an inappropriate speed
  • Becoming angry or confused while driving
  • Hitting curbs
  • Using poor lane control
  • Making errors at intersections
  • Confusing the brake and gas pedals
  • Returning from a routine drive later than usual
  • Forgetting the destination you are driving to during the trip
Driving demands quick reaction time and fast decision making — because of this, a person with Alzheimer's will eventually become unable to drive. Dealing with the issue early on can help ease the transition.

Having the conversation
Losing the independence driving provides can be upsetting. It is important to acknowledge a person's feelings and preserve his or her independence, while ensuring the person's safety and the safety of others.

Starting the conversation
  • Initiate a dialogue to express your concerns. Stress the positive and offer alternatives.
  • Address resistance while reaffirming your unconditional love and support.
  • Appeal to the person's sense of responsibility.
  • Reinforce medical diagnoses and directives. Ask the physician to write a letter stating that the person must not drive. Or ask the physician to write a prescription that says, "No driving." You can then use the letter or prescription to reinforce the conversation.
  • Consider an evaluation by an objective third party.
  • Understand that this may be the first of many conversations about driving

When the conversation does not go well
Some people give up driving easily, but for others this transition can be very difficult. Be prepared for the person to become angry with you, due to the memory and insight issues that are part of Alzheimer's.

  • Be patient and firm. Demonstrate understanding and empathy.
  • Acknowledge the pain of this change and appeal to the person's desire to act responsibly.
  • Ask a respected family authority figure or your attorney to reinforce the message about not driving.
  • If the conversation does not go well, do not blame yourself. The disease can impair insight and judgment, making it difficult for people to understand that their driving is no longer safe. Also the disease can cause mood and personality changes that make reactions more pronounced.
  • As a last resort, take away the car keys, disable the car or remove the car completely. When you do any of these things, be sure to provide safe, reliable alternative transportation.


Thursday, February 15, 2018

One Day Your Mind May Fade. At Least You’ll Have a Plan.


Reprinted from: https://www.nytimes.com/2018/01/19/health/dementia-advance-directive.html
By Paula Span
THE NEW OLD AGE JAN. 19, 2018

When Ann Vandervelde visited her primary care doctor in August, he had something new to show her.

Dr. Barak Gaster, an internist at the University of Washington School of Medicine, had spent three years working with specialists in geriatrics, neurology, palliative care and psychiatry to come up with a five-page document that he calls a dementia-specific advance directive.

In simple language, it maps out the effects of mild, moderate and severe dementia, and asks patients to specify which medical interventions they would want — and not want — at each phase of the illness.

“Patients stumble into the advanced stage of dementia before anyone identifies it and talks to them about what’s happening,” Dr. Gaster told me. “At what point, if ever, would they not want medical interventions to keep them alive longer? A lot of people have strong opinions about this, but it’s hard to figure out how to let them express them as the disease progresses.”

One of those with strong opinions, it happens, was Ms. Vandervelde, 71, an abstract painter in Seattle. Her father had died of dementia years before, in a nursing home after her mother could no longer care for him at home. Ms. Vandervelde had also spent time with dementia patients as a hospice volunteer.
Further, caring for her mother in her final year, Ms. Vandervelde had seen how family conflicts could flare over medical decisions. “I was not going to leave that choice to my children if I could spare them that,” she said.

So when Dr. Gaster explained his directive, “it just made so much sense,” Ms. Vandervelde said. “While I could make these decisions, why not make them? I filled it out right there.”

Like a growing number of Americans over age 60, she already had a standard advance directive, designating a decision-maker (her husband) to direct her medical care if she became incapacitated.

Not all experts are convinced another directive is needed. But as Dr. Gaster and his co-authors recently argued in the journal JAMA, the usual forms don’t provide much help with dementia.

“The standard advance directives tend to focus on things like a ‘permanent coma’ or a ‘persistent vegetative state,’” Dr. Gaster said. “Most of the time, they apply to a person with less than six months to live.”

Although it’s a terminal disease, dementia often intensifies slowly, over many years. The point at which dementia patients can no longer direct their own care isn’t predictable or obvious.

Moreover, patients’ goals and preferences might well change over time. In the early stage, life may remain enjoyable and rewarding despite memory problems or difficulties with daily tasks.

“They have potentially many years in which they wouldn’t want a directive that says ‘do not resuscitate,’” Dr. Gaster said. But if severe dementia leaves them bedridden, unresponsive and dependent, they might feel differently — yet no longer be able to say so.

Whereas a persistent vegetative state occurs rarely, Dr. Gaster tells his patients, dementia strikes far more commonly.

How commonly? That’s not a simple question to answer.

Researchers often cite the long-term Framingham study, which in 1997 estimated the lifetime risk at age 65 as 10.9 percent for men and 12 percent for women.

But the participants in that study were overwhelmingly white. Among the populations facing higher dementia rates are African-Americans, Dr. Murali Doraiswamy, a neuroscientist at Duke University, pointed out.

Last year, the journal Demography published a more representative model, estimating that for the cohort born in 1940, the lifetime risk at age 70 was 30.8 percent for men and 37.4 percent for women.
Dr. Gaster tells patients that “somewhere between 20 and 30 percent of us will at some point develop dementia.” Over the past year, as patients turn 65 and qualify for Medicare — which covers a visit to discuss advance care planning — he has offered them his dementia-specific directive, intended to supplement their other directives.

For each stage of dementia, the patient can choose among four options. “Full efforts to prolong my life” and “comfort-oriented care only, focused on relieving suffering” represent two ends of the spectrum.

Patients can also opt for lifesaving treatments — except when their hearts stop or they can’t breathe on their own, precluding resuscitation or ventilators.

Or they can opt to receive care where they live but avoid hospitalization. “For someone who doesn’t understand what’s happening, going to an E.R. or being hospitalized can be really traumatic,” Dr. Gaster said. The experience can lead to delirium and other setbacks.

So far, 50 to 60 patients have filled out the form. A few have declined his offer to discuss dementia; others “nod and thank me and take it home and never mail it back.”

But most appreciate the overture, Dr. Gaster said, especially if family members have experienced dementia. “It’s something they think and worry about, and they welcome the idea because they do have clear wishes.” In that case, he adds the completed form to their medical records.

We could debate whether a separate dementia form, on top of the general advance directive everyone should have, makes sense. Already, nurses and doctors lament that paperwork often winds up forgotten in a drawer, a safe deposit box or a lawyer’s office, unavailable in a crisis.

If patients haven’t updated the directive in years, their designated proxies may have moved or died. Proxies may never have learned their loved ones’ preferences in the first place. Will adding another directive clarify this process?

Other leaders in the campaign to persuade Americans to document their end-of-life wishes had questions, too.

Ellen Goodman, founder of The Conversation Project (whose dementia-related kit similarly presents choices at different stages), pointed out that the new form represents a patient-doctor agreement.

“We need to have families involved,” she said. “No checklist on earth is going to cover everything you encounter. Most important is the conversation with the decision-maker. That person has to understand what you value and what’s important to you.”

Dr. Rebecca Sudore, a geriatrician and palliative care specialist at the University of California, San Francisco, agreed. Her effort — Prepare for Your Care, an online guide — encourages users to incorporate their reasons for various decisions. “At the bedside, the ‘why’ is very important,” she said.

Both The Conversation Project and Prepare for Your Care provide links to the advance directive/durable power-of-attorney forms legal in each state.

What’s not in dispute: It’s crucial to talk to family, friends and doctors about the quality of life we find acceptable and unacceptable, which interventions we agree to or don’t — and then to document those decisions and circulate the document to designated decision-makers and everyone else who might be involved.

And yes, we should incorporate decisions about dementia into that process, whether in a separate form or not.

When Ann Vandervelde completed her dementia-specific directive, “I felt great relief,” she said. It gave her a sense of control, “and that’s really important to me, to be in the driver’s seat all the way to the end.”

Thursday, February 1, 2018

Home Care Agencies Often Wrongly Deny Medicare Help To The Chronically Ill

Republished from: https://www.npr.org/sections/health-shots/2018/01/17/578423012/home-care-agencies-often-wrongly-deny-medicare-help-to-the-chronically-ill?utm_source=npr_newsletter&utm_medium=email&utm_content=20180118&utm_campaign=npr_email_a_friend&utm_term=storyshare

By SUSAN JAFFE
January 17, 2018

Colin Campbell needs help dressing, bathing and moving between his bed and his wheelchair. He has a feeding tube because his partially paralyzed tongue makes swallowing "almost impossible," he says.

Campbell, 58, spends $4,000 a month on home health care services so he can continue to live in his home just outside Los Angeles. Eight years ago, he was diagnosed with amyotrophic lateral sclerosis, or Lou Gehrig's disease, which relentlessly attacks the nerve cells in his brain and spinal cord and has no cure.

Because of his disability, he has Medicare coverage, but he can't use it for home care — as the former computer systems manager has been told by 14 home health care providers.
That's an incorrect but common belief. Medicare does cover home care services for patients who qualify but, according to advocates for seniors and the home care industry, incentives intended to combat fraud and reward high quality care are driving some home health agencies to avoid taking on long-term patients, such as Campbell, who have debilitating conditions that won't get better. Rule changes that took effect this month could make the problem worse.

"We feel Medicare coverage laws are not being enforced and people are not getting the care that they need in order to stay in their homes," says Kathleen Holt, an attorney and associate director of the Center for Medicare Advocacy, a nonprofit, nonpartisan law firm. The group is considering legal action against the government.

Federal law requires Medicare to pay indefinitely for home care — with no copayments or deductibles — if a doctor ordered it and patients can leave home only with great difficulty. They must need intermittent nursing, physical therapy or other skilled care that only a trained professional can provide. They do not need to show improvement.

Those who qualify can also receive an aide's help with dressing, bathing and other daily activities. The combined services are limited to 35 hours a week.

Medicare affirmed this policy in 2013 when it settled a key lawsuit brought by the Center for Medicare Advocacy and Vermont Legal Aid. In that case, the government agreed that Medicare covers skilled nursing and therapy services — including those delivered at home — to maintain a patient's abilities or to prevent or slow decline. It also agreed to inform providers, those who audit bills, and others that a patient's improvement is not a condition for coverage.

Campbell says some home health care agencies told him Medicare would pay only for rehabilitation, "with the idea of getting you better and then leaving," he says. They told him that Medicare would not pay them if he didn't improve, he says. Other agencies told him Medicare simply did not cover home health care.

Medicaid, the federal-state program for low-income adults and families, also covers home health care and other home services, but Campbell doesn't qualify for Medicaid.
Securing Medicare coverage for home health services requires persistence, says John Gillespie, whose mother has gone through five home care agencies since she was diagnosed with ALS in 2014. He successfully appealed Medicare's decision denying coverage, and afterward Medicare paid for his mother's visiting nurse as well as speech and physical therapy.

"You have to have a good doctor and people who will help fight for you to get the right company," says Gillespie, of Orlando, Fla. "Do not take no for an answer."

Yet a Medicare official did not acknowledge any access problems. "A patient can continue to receive Medicare home health services as long as he/she remains eligible for the benefit," says spokesman Johnathan Monroe.

A leading industry group contends that Medicare's home health care policies are often misconstrued. "One of the myths in Medicare is that chronically ill individuals are not qualified for coverage," says William Dombi, president of the National Association for Home Care and Hospice, which represents nearly half of the nation's 12,000 home care providers.

Part of the problem is that some agencies fear they won't be paid if they take on patients who need their services for a long time, Dombi says. Such cases can attract the attention of Medicare auditors who can deny payments if they believe the patient is not eligible, or they suspect billing fraud. Rather than risk not getting paid, some home health agencies "stay under the radar" by taking on fewer Medicare patients who need long-term care, Dombi says.
And those companies may have a good reason to be concerned. Medicare officials have found that about a third of the agency's payments to home health firms in the fiscal year ending last September were improper.

Shortages of home health aides in some areas might also lead an overburdened agency to focus on those who need care for only a short time, Dombi says.

Another factor that may have a negative effect on chronically ill patients is Medicare's Home Health Compare ratings website. It includes grades on patient improvement, such as whether a client got better at walking with an agency's help. That effectively tells agencies who want top ratings "to go to patients who are susceptible to improvement," Dombi says.

This year, some home care agencies will earn more than just ratings. Under a Medicare pilot program, home health firms in nine states will start receiving payment bonuses for providing good care and those who don't will pay penalties. Some criteria used to measure performance depend on patient improvement, Holt says.

Another new rule, which took effect last Saturday, prohibits agencies from discontinuing services for Medicare and Medicaid patients without a doctor's order. But that, too, could backfire.
"This is good," Holt says. "But our concern is that some agencies might hesitate to take patients if they don't think they can easily discharge them."

This article was written with the support of a journalism fellowship from New America Media, the Gerontological Society of America and the Silver Century Foundation. Kaiser Health News (KHN) is a nonprofit news service. It's an editorially independent program of the Kaiser Family Foundation, and not affiliated with Kaiser Permanente. You can find Susan Jaffe on Twitter @susanjaffe.