Welcome back to “Ask an Advisor,” the advice column where financial professionals answer questions from real people. The topic can be anything in the world of finance, from retirement to taxes to wealth management — or even advice on advising.
This week’s question comes from a retiree in New York City who’s concerned about not just her own retirement, but her parents’ as well. Her 90-year-old father has been taking care of her 87-year-old mother, who has chronic health problems, at home in their Manhattan apartment. This arrangement worked for a few years, but recently it’s become clear her needs require more professional help — and neither Medicare nor their insurance will cover it.
Sadly, this is a common problem. American seniors spend an enormous amount of money on healthcare. According to one recent study by the Center for Retirement Research, the median U.S. retiree spends about 25% of their Social Security on medical expenses. Medicare helps cover some expenses, but not long-term care — the kind that this retiree’s mother needs. Could Medicaid, Medicare’s sister program for low-income Americans, be the answer?
Here’s what this New York retiree wrote:
Dear advisors,
My parents are both elderly and recently began to need care at home. In particular, my mother suffers from severe physical and mental ailments, and needs help bathing and dressing every day. Her Medicare Advantage plan will only cover up to 30 days of this, and we’re running out of time.
On the other hand, Medicaid covers some home care, and I am wondering whether my mother qualifies even though my father probably does not. She receives a very minimal Social Security check ($1,065 per month), and that is her only income. My father receives a larger Social Security check ($2,200 per month) as well as a small pension ($374 per month) and also has a small IRA containing about $40,000. Is it possible that my mother could be covered by Medicaid? And if not, where else can we turn for coverage?
Thanks for your help.
Sincerely,
Wondering on the West Side
