Employment for individuals with disabilities is receiving a much needed boost from an unlikely source; DEMOGRAPHIC REALITY. With the huge group of Baby Boomers just now beginning their slide into the "Golden Years", companies of all sizes will start to notice the ever growing number of empty positions within their walls. Many have already begun to feel the pinch and are looking at the huge, untapped supply of individuals with intellectual, cognitive and physical disabilities as a possible replacement source.
This demographic event has arrived just as many in the advocacy world are developing new and successful methods for preparing those same individuals for employability and, ultimately, self sufficiency. With a little luck and a lot more work from educators', service providers', benefit administrators' and employers', we could be on the brink of a new paradigm that screams "disabled doesn't mean unable".
Two great sites to catch much of the new information, go to DisabilityInfo.Gov and ODEP
Wednesday, November 26, 2008
Tuesday, July 29, 2008
Medicare issues new Durable Medical Equipment rules
MEDICARE LAUNCHES OUTREACH EFFORT TO HELP BENEFICIARIES WITH NEW PROGRAM THAT LOWERS COSTS FOR DURABLE MEDICAL EQUIPMENT PROGRAM THAT LOWERS COSTS FOR DURABLE MEDICAL EQUIPMENT, PROSTHETICS, ORTHOTICS, AND SUPPLIES
Nearly four million people with Medicare living in ten communities across the nation will receive information about a new program that will lower their costs for certain medical equipment and supplies by changing how Medicare pays for these items. The Centers for Medicare & Medicaid Services (CMS) will begin mailing letters on the new program, which begins July 1, to beneficiaries later this month
“Beginning July 1, Medicare beneficiaries will see lower costs for some of their durable medical equipment and supplies – as much as a 43 percent savings for certain items – and the assurance they will have accredited and financially sound suppliers providing them with equipment and supplies,” said CMS Acting Administrator Kerry Weems. “It is important that people with Medicare who use certain medical equipment and supplies know they can call
1-800-MEDICARE or go to www.medicare.gov to see if their current supplier is a Medicare-contract supplier or what they may need to do to find a new supplier approved by Medicare.”
The resources being mailed to beneficiaries will include a brochure about the new program and a list of Medicare contract suppliers in their area. CMS is also sending similar information about the new program and the list of Medicare contract suppliers to local partner groups and durable medical equipment (DME) referral agents, such as hospital discharge planners, physicians’ office staff and home health agency social workers. The ten Round One communities include certain ZIP codes in the areas of Charlotte, N.C.; Cincinnati and Cleveland, Ohio; Dallas/Fort Worth, TX; Kansas City KS-MO; Miami and Orlando, Fla.; Pittsburgh, Pa.; Riverside, Calif. and San Juan, Puerto Rico.
The new program, required by the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (MMA), uses the competitive marketplace to establish prices for certain durable medical equipment, prosthetics, orthotics, and supplies. Under the new program, bids submitted by suppliers were evaluated and the bids within the winning range established the competitive prices that beneficiaries – and Medicare – will pay. Suppliers who were accredited, met financial and quality standards and bid within the winning range were offered contracts under the competitive bidding program. By using these selected contract suppliers, Medicare beneficiaries should receive high quality items at an average saving of 26 percent from approved suppliers.
“Beginning July 1, Medicare beneficiaries will see lower costs for some of their durable medical equipment and supplies – as much as a 43 percent savings for certain items – and the assurance they will have accredited and financially sound suppliers providing them with equipment and supplies,” said CMS Acting Administrator Kerry Weems. “It is important that people with Medicare who use certain medical equipment and supplies know they can call
1-800-MEDICARE or go to www.medicare.gov to see if their current supplier is a Medicare-contract supplier or what they may need to do to find a new supplier approved by Medicare.”
The resources being mailed to beneficiaries will include a brochure about the new program and a list of Medicare contract suppliers in their area. CMS is also sending similar information about the new program and the list of Medicare contract suppliers to local partner groups and durable medical equipment (DME) referral agents, such as hospital discharge planners, physicians’ office staff and home health agency social workers. The ten Round One communities include certain ZIP codes in the areas of Charlotte, N.C.; Cincinnati and Cleveland, Ohio; Dallas/Fort Worth, TX; Kansas City KS-MO; Miami and Orlando, Fla.; Pittsburgh, Pa.; Riverside, Calif. and San Juan, Puerto Rico.
The new program, required by the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (MMA), uses the competitive marketplace to establish prices for certain durable medical equipment, prosthetics, orthotics, and supplies. Under the new program, bids submitted by suppliers were evaluated and the bids within the winning range established the competitive prices that beneficiaries – and Medicare – will pay. Suppliers who were accredited, met financial and quality standards and bid within the winning range were offered contracts under the competitive bidding program. By using these selected contract suppliers, Medicare beneficiaries should receive high quality items at an average saving of 26 percent from approved suppliers.
Sunday, July 27, 2008
Financial Security Accounts for Individuals with Disabilities Act of 2007
The Financial Security Accounts for Individuals with Disabilities Act of 2007
H.R. 2370
Fact Sheet
General Purpose
The federal government gives American families a helping hand in saving for the future. Accounts with special tax advantages help people save for college, retirement, and other normal life events. But people with disabilities don’t have the same expectations for the future. They need a new savings instrument.
A typical tax-deferred savings plan, such as a “529” college tuition plan, can’t help a family with a child who may not go to college or become financially independent. On the other hand, the need for savings is even greater for a child with a disability because he or she will likely be less able to earn an income, and may require additional spending on medical treatment or adaptive equipment. Without a clear vision of the future, parents of children with disabilities must choose between turning down the advantages of savings plans or risking a penalty if their child cannot use the funds according to the account restrictions.
The Financial Security Accounts for Individuals with Disabilities Act of 2007 was first introduced n the 109th Congress. The legislation amends the Internal Revenue Code of 1986 to provide for the establishment of Financial Security Accounts for Individuals with Disabilities (FSAID) for the care of family members with disabilities.
Legislative Highlights
FSAID’s are exempt from taxation during the period of contribution;
Anyone can contribute to the financial security of a loved one;
Proceeds from the account, when used in accordance with this legislation, are not includible in the gross income of the beneficiary;
Accounts are for the exclusive purpose of paying qualified expenses of an individual who is disabled and who is designated the beneficiary of the trust;
Accounts are used for qualified expenses, not compensated for by insurance or otherwise, as detailed in the legislation. Such expenses include:
Educational expenses,
Medical and dental care,
Community based support services,
Employment training and support,
Moving,
Assistive technology, and
After the age of 18, housing and transportation expenses.
1. Flexibility
FSAID accounts are easy to establish, unlike some other savings instruments.
Anyone – other family members, friends, employers – can contribute to an account on behalf of a beneficiary;
Since they are as easy as a savings account to establish, the costs associated in administering the account are low;
The Beneficiary can serve as the Trustee of the account;
A family who saves money in a traditional account for a child who becomes disabled later in life can roll over the funds into a disability savings account without penalty;
The beneficiary can be changed to other qualified family members.
2. Portability
Unlike some savings instruments, such as “529” college accounts, the FSAID would be created and regulated only on the federal level, so they would operate under the same rules in every state.
3. Financial Security
The Financial Security Accounts for Individuals with Disabilities Act of 2007 would give families of people with disabilities the ability to save for their child’s future just like every other American family, and help people with disabilities live full, productive lives in their communities
Under the proposal, an “individual with a disability” is defined as anyone currently receiving supplemental security income benefits under title XVI of the Social Security Act or an individual otherwise eligible to receive such benefits notwithstanding the income and assets tests required for eligibility for such benefits;
Rollovers from other accounts are allowed without penalty into a FSAID;
Prohibits amounts held by, or paid or distributed from, FSAIDs from being treated as income or assets when determining eligibility for benefits provided by any Federal benefits program;
Any distributions that exceed qualifying expenses are subject to an income tax on the non-qualifying portion of the disbursement;
Contributions to a FSAID are capped at $500,000.00.
Steve Rhatigan goes to Washington DC, Part Two
May 8, 2008
Steven C. Rhatigan from The Woodlands, Texas was named as Chair for the President's Committee for People with Intellectual Disabilities (PCPID).
Thirteen new members of PCPID, appointed by President George W. Bush, were sworn in by U.S. Department of Health and Human Services’ (HHS) Deputy Secretary Tevi D. Troy, Ph.D. The President’s Committee for People with Intellectual Disabilities provides advice to the President and to the Secretary of HHS pertaining to matters relating to programs and services for people with intellectual disabilities.
“Persons with disabilities are a unique group and they deserve the same quality of life as all other individuals,” said Daniel C. Schneider, HHS acting assistant secretary for children and families. “The new members will assist in upholding the rights of children and adults with intellectual disabilities and guarantee their capacity to participate in all aspects of community life.”
“This is a diverse and remarkable group of leaders at the local, state and national level, coming together to finish out the president’s New Freedom Initiative, which is to remove barriers to community living for people with disabilities,” said Steve Rhatigan, new chairman for PCPID, appointed by President George W. Bush.
Since its inception in 1965, the President’s Committee has led the charge to improve the lives of people with intellectual disabilities, most recently adopting the goals outlined in President George W. Bush’s New Freedom Initiative to recognize and uphold the right of all people with intellectual disabilities to enjoy a quality of life that promotes independence, self-determination, and full participation as productive members of society. These goals include the assurance of full citizenship rights, the reduction of the occurrence and severity of intellectual disabilities and the promotion of forward thinking programs and services and cutting edge assistive technologies to improve the lives of people with intellectual disabilities.
Steven C. Rhatigan from The Woodlands, Texas was named as Chair for the President's Committee for People with Intellectual Disabilities (PCPID).
Thirteen new members of PCPID, appointed by President George W. Bush, were sworn in by U.S. Department of Health and Human Services’ (HHS) Deputy Secretary Tevi D. Troy, Ph.D. The President’s Committee for People with Intellectual Disabilities provides advice to the President and to the Secretary of HHS pertaining to matters relating to programs and services for people with intellectual disabilities.
“Persons with disabilities are a unique group and they deserve the same quality of life as all other individuals,” said Daniel C. Schneider, HHS acting assistant secretary for children and families. “The new members will assist in upholding the rights of children and adults with intellectual disabilities and guarantee their capacity to participate in all aspects of community life.”
“This is a diverse and remarkable group of leaders at the local, state and national level, coming together to finish out the president’s New Freedom Initiative, which is to remove barriers to community living for people with disabilities,” said Steve Rhatigan, new chairman for PCPID, appointed by President George W. Bush.
Since its inception in 1965, the President’s Committee has led the charge to improve the lives of people with intellectual disabilities, most recently adopting the goals outlined in President George W. Bush’s New Freedom Initiative to recognize and uphold the right of all people with intellectual disabilities to enjoy a quality of life that promotes independence, self-determination, and full participation as productive members of society. These goals include the assurance of full citizenship rights, the reduction of the occurrence and severity of intellectual disabilities and the promotion of forward thinking programs and services and cutting edge assistive technologies to improve the lives of people with intellectual disabilities.
Monday, February 26, 2007
Social Security and Medicaid come under fire.
The issues surrounding the support of an individual with lifetime special needs are complex and varied. There is no “one size fits all” model that can be used as a template as each person, regardless of the disabling condition, has unique needs and abilities. There is also the question of what “natural” supports already exist in the form of family, friends and resources.
The programs that federal and state benefits provide are valuable to all qualified individuals and form the financial and security foundation of most long term plans. The nature and structure of these benefits make it difficult to match the need with the supports available, creating a situation not always conducive to actually achieving the stated mission of providing help to those in need with dignity and a sense of self worth.
And, many of the programs actively eschew the natural supports and quite often penalize a beneficiary for their caregiver’s actions and support.
The outcome of such a confusing maze of services is that many qualified individuals, and their caregivers, are not receiving the support that might make positive and profound improvements in their lives. And, even after they are on benefits, the constant flood of communications from the varied sources make it very difficult to maintain equilibrium as to their current status. Even experienced advocates find it a task to keep up with the published regulation changes, and this doesn’t include accounting for the regional interpretations and application of those changes.
Where can individuals get help? There is a cottage industry of attorneys’ who advertise their experience; however, they are usually partial to those cases with large back payment potential. That leaves the single mother with a special needs child largely at the mercy of the “voice” on the other end of the telephone line. And even the most educated person will find it hard to cut through the clutter.
At this particular time it is not unusual for an initial applicant to wait six to nine months to process their file trough 3 levels of evaluation. If they are still not approved, it can take another year to get through levels four and five.
If you consider that many individuals must make application through several agencies to receive their full measure of benefits, most with different terminology and requirements, it is no wonder that 30% of eligible individuals never re apply after their first failed attempt.
Some recent statements from reputable sources about the state of our benefit programs are direct and damning:
The Eligibility Definition used by SSA needs to be changed.
David C. Stapleton Dir, Cornell University Institute for Policy Research
“Further, I have concluded that we have to make fundamental, conceptual changes to both how we define eligibility for economic security benefits, and how we provide those benefits, if we are ever to fulfill the promise of the ADA.”
A User’s Perspective on Federal Disability Data
by Martin Gould, Ed.D. Director of Research and Technology
National Council on Disability
"There are dozens of individual federal funding streams with varying and different eligibility criteria for program access. There is a patchwork quilt of policy and program initiatives that change when Administrations turn over, or that are outmoded – some dating to the 1960s and 1970s -- and uncoordinated. There are no specific or concrete national goals for people with disabilities in a host of critical areas of life.”
A Disability System for the 21st Century
The Social Security Advisory Board
September 2006 Report
The programs that federal and state benefits provide are valuable to all qualified individuals and form the financial and security foundation of most long term plans. The nature and structure of these benefits make it difficult to match the need with the supports available, creating a situation not always conducive to actually achieving the stated mission of providing help to those in need with dignity and a sense of self worth.
And, many of the programs actively eschew the natural supports and quite often penalize a beneficiary for their caregiver’s actions and support.
The outcome of such a confusing maze of services is that many qualified individuals, and their caregivers, are not receiving the support that might make positive and profound improvements in their lives. And, even after they are on benefits, the constant flood of communications from the varied sources make it very difficult to maintain equilibrium as to their current status. Even experienced advocates find it a task to keep up with the published regulation changes, and this doesn’t include accounting for the regional interpretations and application of those changes.
Where can individuals get help? There is a cottage industry of attorneys’ who advertise their experience; however, they are usually partial to those cases with large back payment potential. That leaves the single mother with a special needs child largely at the mercy of the “voice” on the other end of the telephone line. And even the most educated person will find it hard to cut through the clutter.
At this particular time it is not unusual for an initial applicant to wait six to nine months to process their file trough 3 levels of evaluation. If they are still not approved, it can take another year to get through levels four and five.
If you consider that many individuals must make application through several agencies to receive their full measure of benefits, most with different terminology and requirements, it is no wonder that 30% of eligible individuals never re apply after their first failed attempt.
Some recent statements from reputable sources about the state of our benefit programs are direct and damning:
The Eligibility Definition used by SSA needs to be changed.
David C. Stapleton Dir, Cornell University Institute for Policy Research
“Further, I have concluded that we have to make fundamental, conceptual changes to both how we define eligibility for economic security benefits, and how we provide those benefits, if we are ever to fulfill the promise of the ADA.”
A User’s Perspective on Federal Disability Data
by Martin Gould, Ed.D. Director of Research and Technology
National Council on Disability
"There are dozens of individual federal funding streams with varying and different eligibility criteria for program access. There is a patchwork quilt of policy and program initiatives that change when Administrations turn over, or that are outmoded – some dating to the 1960s and 1970s -- and uncoordinated. There are no specific or concrete national goals for people with disabilities in a host of critical areas of life.”
Issues in Medicaid Policy and System Transformation:
Recommendations from the President’s Commission on the Freedom Initiative
Stephen L. Day, M.S.W.
“For the longer term an opportunity exists to review the current patchwork of
Medicaid optional services and state-level variations and to consider a more
consistent national Medicaid benefit plan”
A Disability System for the 21st Century
The Social Security Advisory Board
September 2006 Report
“Our Nation’s policymakers need to acknowledge that the current disability programs, though well intentioned, are badly fractured and disjointed. A unifying point of vision, oversight, and management is desperately needed.”
GAO
June 2005
FEDERAL
DISABILITY
ASSISTANCE
“GAO’s research has found that these programs are neither well aligned with 21st century realities nor are they well-positioned to provide meaningful and timely support for Americans with disabilities. Solutions to these problems are likely to require fundamental changes, including regulatory and legislative action.”
It's time for a new plan for those with lifetime special needs and their caregiver's.
Monday, April 03, 2006
"Steve Rhatigan goes to Washington"
The White House
For Immediate Release
Office of the Press SecretaryMarch 27, 2006
Personnel Announcement
President George W. Bush today announced his intention to nominate Steven C. Rhatigan of Texas to the President’s Committee for People with Intellectual Disabilities (PCPID), formerly The President's Committee on Mental Retardation (PCMR). PCPID is a federal advisory committee, established by presidential executive order to advise the President of the United States and the Secretary of The Department of Health and Human Services on issues concerning citizens with intellectual disabilities, coordinate activities between different federal agencies and assess the impact of their policies upon the lives of citizens with intellectual disabilities and their families.
It is estimated that between 7 and 8 million Americans of all ages, or three percent of the general population, experience intellectual disabilities. Nearly 30 million, or one in ten families in the United States, are directly affected by a person with intellectual disabilities at some point in their lifetime. Intellectual disabilities present a major challenge to the social, educational, health, and economic systems within the United States.
The President’s Committee for People with Intellectual Disabilities was first established in 1966 by Executive Order to focus on this critical subject of national concern. Since 1966, the Committee has fostered State planning, stimulated development of strategies, policies and programs and advanced the concept of community participation in the field of intellectual disabilities. To continue to best fulfill its purpose, the President has adopted several national goals in order to better recognize and uphold the right of all people with intellectual disabilities to enjoy a quality of life that promotes independence, self-determination, and participation as productive members of society. These goals include the assurance of full citizenship rights of people with intellectual disabilities, the provision of all necessary supports to individuals and families, the reduction of the occurrence and severity of intellectual disabilities and the promotion of the widest dissemination of information of models, programs, and services within the field of intellectual disabilities.
Steven C. Rhatigan of The Woodlands, Texas brings a unique perspective to PCPID based on 25 years of planning and advocacy experience across the spectrum of disabling conditions. In addition to his life planning practice, he is a frequent speaker on the issues facing this unique and diverse population. He has served on numerous boards and committees including the advisory board for The Texas Department of Mental Health and Mental Retardation; President of The Mental Health Association of Greater Houston and President of the Houston Association of Insurance and Financial Advisors. He currently maintains active membership in over 20 disability support groups.
Mr. Rhatigan has been married for 30 years to his wife Sharon and they have two grown children.
For additional information, contact:
The President’s Committee for People with Intellectual Disabilities
The Aerospace Center, Room 701
370 L'Enfant Promenade, S.W. Washington, DC 20447
Telephone (202) 619-0634
For Immediate Release
Office of the Press SecretaryMarch 27, 2006
Personnel Announcement
President George W. Bush today announced his intention to nominate Steven C. Rhatigan of Texas to the President’s Committee for People with Intellectual Disabilities (PCPID), formerly The President's Committee on Mental Retardation (PCMR). PCPID is a federal advisory committee, established by presidential executive order to advise the President of the United States and the Secretary of The Department of Health and Human Services on issues concerning citizens with intellectual disabilities, coordinate activities between different federal agencies and assess the impact of their policies upon the lives of citizens with intellectual disabilities and their families.
It is estimated that between 7 and 8 million Americans of all ages, or three percent of the general population, experience intellectual disabilities. Nearly 30 million, or one in ten families in the United States, are directly affected by a person with intellectual disabilities at some point in their lifetime. Intellectual disabilities present a major challenge to the social, educational, health, and economic systems within the United States.
The President’s Committee for People with Intellectual Disabilities was first established in 1966 by Executive Order to focus on this critical subject of national concern. Since 1966, the Committee has fostered State planning, stimulated development of strategies, policies and programs and advanced the concept of community participation in the field of intellectual disabilities. To continue to best fulfill its purpose, the President has adopted several national goals in order to better recognize and uphold the right of all people with intellectual disabilities to enjoy a quality of life that promotes independence, self-determination, and participation as productive members of society. These goals include the assurance of full citizenship rights of people with intellectual disabilities, the provision of all necessary supports to individuals and families, the reduction of the occurrence and severity of intellectual disabilities and the promotion of the widest dissemination of information of models, programs, and services within the field of intellectual disabilities.
Steven C. Rhatigan of The Woodlands, Texas brings a unique perspective to PCPID based on 25 years of planning and advocacy experience across the spectrum of disabling conditions. In addition to his life planning practice, he is a frequent speaker on the issues facing this unique and diverse population. He has served on numerous boards and committees including the advisory board for The Texas Department of Mental Health and Mental Retardation; President of The Mental Health Association of Greater Houston and President of the Houston Association of Insurance and Financial Advisors. He currently maintains active membership in over 20 disability support groups.
Mr. Rhatigan has been married for 30 years to his wife Sharon and they have two grown children.
For additional information, contact:
The President’s Committee for People with Intellectual Disabilities
The Aerospace Center, Room 701
370 L'Enfant Promenade, S.W. Washington, DC 20447
Telephone (202) 619-0634
Monday, September 05, 2005
Upcoming Family to Family events in Houston
EASY ACCESS TO HEALTH
INFORMATION
Please join us as Health Sciences librarian, Beatriz Varman, demonstrates how to easily find reliable health information on the Internet. Internet access and hands-on assistance will be available, so feel free to bring your questions!
Dates: August 19, 2005
October 14, 2005
November 4, 2005
December 9, 2005
All of the trainings will be held from 10:00 a.m. – noon at the Family to Family Network office located at 13150 FM 529, Suite 106
Houston, TX 77041 (corner of FM 529 and N. Eldridge).
There is no charge for the trainings, but space is limited. To attend, RSVP at least 2 days prior to the training date at
713-466-6304. Thank you!
http://www.familytofamilynetwork.org/
http://resource.library.tmc.edu/family
Tuesday, August 23, 2005
Saturday, June 25, 2005
Social Security Disability Insurance for Disabled Adult Children
You may be eligible to receive disability cash benefits on the record of your parent(s) if:
Ø You are 18 years of age or older, and
Ø You have a disability that began before age 22, and
Ø You have a parent who has worked and earned enough credits and that parent is retired, deceased or has a disability, and
Ø You are not working or working but earning less than $585 per month.
If your disabled person meets these eligibility requirements then they will begin receiving a cash benefit equal to 50% of your social security retirement benefit and 75% of that benefit after your death. This is subject to the family maximum, so it may be lower depending on the number of your eligible dependants.
Example:
Primary recipient = $ 2000 per month at 100%
Spousal recipient = 1000 per month at 50%
Disabled Adult Child = 1000 per month at 50% (not to exceed the family maximum of $3500. Their benefits are reduced to $750 until the death of a beneficiary.)
They also receive Medicare A & B. If they have been previously covered through SSI and Medicaid, then:
Ø There is no waiting period for the Medicare; and,
Ø Medicaid continues plus pays the Part B premiums and all deductibles and co pays for Medicare if their benefit is below $917 (for 2005).
For more information go to: www.ssa.gov
Ø You are 18 years of age or older, and
Ø You have a disability that began before age 22, and
Ø You have a parent who has worked and earned enough credits and that parent is retired, deceased or has a disability, and
Ø You are not working or working but earning less than $585 per month.
If your disabled person meets these eligibility requirements then they will begin receiving a cash benefit equal to 50% of your social security retirement benefit and 75% of that benefit after your death. This is subject to the family maximum, so it may be lower depending on the number of your eligible dependants.
Example:
Primary recipient = $ 2000 per month at 100%
Spousal recipient = 1000 per month at 50%
Disabled Adult Child = 1000 per month at 50% (not to exceed the family maximum of $3500. Their benefits are reduced to $750 until the death of a beneficiary.)
They also receive Medicare A & B. If they have been previously covered through SSI and Medicaid, then:
Ø There is no waiting period for the Medicare; and,
Ø Medicaid continues plus pays the Part B premiums and all deductibles and co pays for Medicare if their benefit is below $917 (for 2005).
For more information go to: www.ssa.gov
Review, Revise and Strenghten.
It is imperative to keep your comprehensive estate plan with special needs provisions updated, especially related to asset distributions. Many folks fail at this important task because of the mistaken belief that the legal documents need to be amended or rewritten. No one relishes additional legal fees.
In reality, the majority of distributions at death do not pass according to the will but are distributed by the beneficiary declarations for your life insurance, IRA’s, 401K’s and annuities. The result is that you can fine tune your plan by adjusting the distribution %’s for your intended beneficiaries.
To affect this type of update, your financial consultant or estate planner should be asked to reassess the financial profile for your special needs child on a regular basis to accommodate any variances that have, or may, occur. This will then alter the present value figure for your death plan. With this new figure, you can use the simple Change of Beneficiary form to increase funding to the required areas (i.e. the Special Needs Trust).
Surprisingly, many plans are under funded by over 100% and micro-economic faults are the cause. Many financial plans:
-Understate actual living expenses
-Use static interest assumptions,
-Ignore the internal costs of money management,
-Fail to account for taxes, and
-Disregard cost of living increases.
Since today’s disabled population will live to ages closer to normal mortality expectations, many trusts are established with cash flow projections of fifty years or more. What happens if an improperly funded trust terminates in 20 years while the beneficiary still has 30 years more to live? In a word, disaster!
Funding for your child's futute.
One common question that often comes to mind when beginning the difficult task of developing a life plan for a special needs child is “How much money do we need to provide for our child’s future?” The complete answer depends on too many factors to discuss here, however, two key elements are:
þ Mortality- how long might your child live based on their unique situation.
þ Morbidity- what extraordinary costs could they incur due to their physical or developmental impairment.
Many inexperienced planners only focus on mortality as the baseline for the financial assessment. Too often, they compound that error by ignoring the dynamic nature of cost of living increases which affect special needs specific expenses. Taken together, this can greatly undervalue the true funding requirements.
Morbidity deals with deviation. In this case, it asks, “What changes will take place in the care needs of my child as they progress down their mortality line?” Seen as a chart it would look like this:
The triangle formed by the deviation can ad a significant sum to the funding amount. Disregard it at your, and your child’s peril!
þ Mortality- how long might your child live based on their unique situation.
þ Morbidity- what extraordinary costs could they incur due to their physical or developmental impairment.
Many inexperienced planners only focus on mortality as the baseline for the financial assessment. Too often, they compound that error by ignoring the dynamic nature of cost of living increases which affect special needs specific expenses. Taken together, this can greatly undervalue the true funding requirements.
Morbidity deals with deviation. In this case, it asks, “What changes will take place in the care needs of my child as they progress down their mortality line?” Seen as a chart it would look like this:
The triangle formed by the deviation can ad a significant sum to the funding amount. Disregard it at your, and your child’s peril!
Health Insurance Premium Payment Plan
If someone in your household is on Medicaid and someone in your household is employed, you may qualify for the Health Insurance Premium Payment (HIPP) Program for Texas Medicaid recipients and their families.
What is HIPP?
The Health Insurance Premium Payment Program (HIPP) is a Medicaid program that pays for the cost of Medical Premiums. The Program reimburses clients or employers for private health insurance payments for Medicaid eligible persons when it is cost effective.
Why would I want HIPP?
HIPP will pay for your private health insurance program.
Members of your family who are not eligible for Medicaid may be covered under HIPP.
Health Insurance paid through HIPP may cover services that are not covered under Medicaid
How will the Premiums be paid?
Once your eligibility has been determined, the State Contractor, Texas Medicaid, and Healthcare Partnership (TMHP) will pay or continue to pay for private health insurance premiums as long as you or a member of the family is eligible for Medicaid and the private insurance has been determined to be cost effective.
How do I apply?
For more information, contact the HIPP program at 1-800-440-0493.
What is HIPP?
The Health Insurance Premium Payment Program (HIPP) is a Medicaid program that pays for the cost of Medical Premiums. The Program reimburses clients or employers for private health insurance payments for Medicaid eligible persons when it is cost effective.
Why would I want HIPP?
HIPP will pay for your private health insurance program.
Members of your family who are not eligible for Medicaid may be covered under HIPP.
Health Insurance paid through HIPP may cover services that are not covered under Medicaid
How will the Premiums be paid?
Once your eligibility has been determined, the State Contractor, Texas Medicaid, and Healthcare Partnership (TMHP) will pay or continue to pay for private health insurance premiums as long as you or a member of the family is eligible for Medicaid and the private insurance has been determined to be cost effective.
How do I apply?
For more information, contact the HIPP program at 1-800-440-0493.
The "Widow's Transfer"
For many of the older generation, the issue of the long term care of their disabled child was seldom addressed in terms of dollars and cents. It was, and is, a matter of total commitment to do what is necessary on a daily basis. When those tasks exceeded the ability of the caregiver, many looked to private residential placements for accommodation. As part of this transition most communities performed some type of financial analysis to evaluate the sponsor’s ability to pay the expected costs. Many of these financial reviews, in hindsight, fell short in projecting both the inflation factors for care, the life span of the resident and the ability of sponsor to cover those dynamic costs over a lifetime, both theirs and the resident’s.
Today, many of parents are watching as their assets fall to levels that are worrisome and threaten both their lifestyle needs and that of their child’s. Their greatest fear then becomes “What if I have a catastrophic event and all of my money is used for my care? What will be left for my child?”
One possible solution may be a little known rule in Medicaid planning, which combined with special needs trust regulations, allows for instant asset protection. This law allows for a parent to transfer some or all of their assets to an existing special needs trust without incurring any personal transfer penalty. This would allow that parent to safeguard their remaining assets for their “resident” child while immediately qualifying themselves for Long Term Medicaid coverage. This is the Medicaid that pays for nursing home care.
To use this rule the trust had to be created by a parent or grandparent and be “a living trust”, able to accept current deposits.
One additional planning note; since individuals may lose their capacity to make rational decisions due to some form of dementia, it is imperative to have this subject well defined in a Durable Power of Attorney document to insure that it is fulfilled.
It is advised that an experienced Elder Care attorney be consulted on this and other life planning issues.
Monday, December 13, 2004
Trustee for a son with a brain disorder.
Question: Should I name my daughter to be her older brother's trustee?
Answer: Probably not is you really love her.
Most people underestimate the complex tasks that a trustee must perform. The three main duties are:
1.Invest assets in a tax efficient way over a long period of time.
2.Distribute needed funds in a tax efficient way that does not undermine social security rules.
3.Report taxable activity to the IRS.
From my experience, most of the trusts that get into trouble are due to gross mismanagement of one or all of these duties. A more compelling reason against her nomination in this case might be that you place her in the unenviable position of constant conflict with her brother over the proper use of the money. If he gets it into his head that he wants something that she doesn't feel is a justified use of the funds there may be a conflict arise that could break the familial link that you hoped would always be there for him. Also, if he tends toward aggression, she could be in harms way. In the end, she may decide to cut and run.
My advice would be to use a professional trust company to handle the 3 tasks and name your daughter as Trust Advisor. This method will relieve her of the management burdens while still maintaining control over the trust managers. Now, if he wnats something outlandish she can tell him that it's out of her hands. This should keep her involved in his life, which is what you wnated in the first place.
Wednesday, December 01, 2004
Social Security problem.
Question: Can we get Medicaid back for our son? He lost it when they changed his benefit to SSDI when I retired. They said he now received too much income to qualify. We need the coverage since he has to wait 2 years for Medicare to start.
Answer: Yes you can.
Continuing Medicaid after SSI goes away.
§15.466(a) — Type Program 18. Individuals 18 and older who were denied SSI benefits on or after July 1, 1987, because of entitlement to or an increase in RSDI disabled adult children's benefits may be eligible for Medicaid if they otherwise would meet all current SSI eligibility criteria in the absence of those disabled adult children's benefits. Eligible individuals are also entitled to the exclusion of subsequent increase in those benefits.
To be eligible, an individual must
1. be at least 18;
2. have become disabled before 22;
3. be denied SSI benefits because of entitlement or an increase in RSDI disabled children's benefits received on or after July 1, 1987, and any subsequent increase; and
4. meet current SSI criteria if the children’s benefit is excluded.
If you are preparing to start on Social Security, you should contact SSA and inform them of your change in status and that you have a dependant receiving SSI and Medicaid. Tell them that you are aware that your dependant will be able to continue Medicaid under Type Program 18. This is usually all it will take to make the change. If you encounter any trouble, ask for an Aged and Disabled Specialist in the SSA office.
Your dependant will be eligible for Medicare and the 24-month waiting period will be waived due to the previous Medicaid coverage. Also, ask if they will be QMB eligible. More on that in a later posting.
Answer: Yes you can.
Continuing Medicaid after SSI goes away.
§15.466(a) — Type Program 18. Individuals 18 and older who were denied SSI benefits on or after July 1, 1987, because of entitlement to or an increase in RSDI disabled adult children's benefits may be eligible for Medicaid if they otherwise would meet all current SSI eligibility criteria in the absence of those disabled adult children's benefits. Eligible individuals are also entitled to the exclusion of subsequent increase in those benefits.
To be eligible, an individual must
1. be at least 18;
2. have become disabled before 22;
3. be denied SSI benefits because of entitlement or an increase in RSDI disabled children's benefits received on or after July 1, 1987, and any subsequent increase; and
4. meet current SSI criteria if the children’s benefit is excluded.
If you are preparing to start on Social Security, you should contact SSA and inform them of your change in status and that you have a dependant receiving SSI and Medicaid. Tell them that you are aware that your dependant will be able to continue Medicaid under Type Program 18. This is usually all it will take to make the change. If you encounter any trouble, ask for an Aged and Disabled Specialist in the SSA office.
Your dependant will be eligible for Medicare and the 24-month waiting period will be waived due to the previous Medicaid coverage. Also, ask if they will be QMB eligible. More on that in a later posting.
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