How to Protect Yourself Against Alzheimer’s Disease

Long-term care costs are a serious threat to wealth.

The costs of care can eat through a pension, and deplete savings and assets rapidly. According to the most recent Genworth Cost of Care Study, the median cost of a semi-private room at a skilled nursing facility now tops $104,000 per year.

The good news is you can protect yourself, your loved ones, and your financial legacy. But it takes some proactive planning.

Here are some steps you can take now to protect yourself later.

Long-Term Care Insurance

Long-term care insurance is designed to cover the costs of services that assist with activities of daily living, such as bathing, dressing, and eating.

It’s different from health insurance and health sharing, which focus on acute medical conditions and don’t cover long-term custodial care for chronic conditions like Alzheimer’s and dementia.

Note: Long -term care insurance policies may be tax deductible. Your Personal Benefits Manager can help you find a qualified tax-deductible long-term care policy.

Health Savings Accounts (HSAs)

Health savings accounts enable you to pay for long-term care services and all other qualified medical expenses with tax-free dollars.

You can even use HSA dollars to pay qualified long-term care insurance premiums. So HSAs and long term care insurance make a great pairing.

If you’re over age 65 and you’ve enrolled in Medicare already, you can’t make new contributions to a health savings account. But if you already have an HSA, it can be a terrific tax-saving resource.

The combination of HSAs and long-term care insurance is a tremendous tool in protecting yourself and your family against Alzheimer’s risk.

Medicare Resources

Medicare now covers care planning services for those recently diagnosed with Alzheimer’s or other types of cognitive impairment disorders.

Care planning services allow patients and their caregivers to learn about medical and non-medical treatments, clinical trials, community resources, and other information that may be helpful to help you or your loved one maintain the best possible quality of life.

Medicare also covers a special Cognitive Assessment visit at no out-of-pocket cost to you.

Diagnostic Testing

Medicare Part B coverage is available for common Alzheimer’s-related diagnostic tests, such as neuroimaging (such as CT scans or MRIs) and neuropsychological assessments.

Medicare Advantage Special Needs Plans

Additionally, there are now Medicare Advantage Special Needs Plans (SNPs) available designed specifically for people with Alzheimer’s disease or other forms of dementia.

These are Medicare Advantage plans that focus on care and coverage for beneficiaries living with dementia.

Your Personal Benefits Manager can help connect you with a Medicare Advantage Special Needs Plan that can help pay for and coordinate all types of care under Medicare Parts A, B, and D, and not just Alzheimer’s/Dementia-related care.

Click here to read more details on benefits and programs available under Medicare for Alzheimer’s and dementia. 

Trust and Estate Planning Measures

You may want to start moving assets out of your name and into a trust. This may help you qualify for Medicaid nursing home benefits in future years. A good elder law attorney or estate planning attorney can help guide you in this endeavor.

You should also consider writing a living will and creating springing power of attorney documents, so that your loved ones or other trusted individuals can manage your finances on your behalf if you become disabled and unable to make these decisions for yourself. 

Act Now!

It’s never too early to take serious steps to protect yourself against the risk of Alzheimer’s Disease or other forms of dementia – not to mention the hundreds of other medical issues that may contribute to long term care risk.

But at some point, it can be too late to take these important measures.

A stroke, a car accident, a slip and fall, and even a doctor visit that results in a diagnosis or medical note can make it difficult or impossible to get coverage.

The best time to prepare yourself financially against these potentially devastating risks is now.

So I encourage you to contact your Personal Benefits Manager and get the ball rolling as soon as you can!

Have a great summer, and I’ll catch you again in a month, with the next edition of the Health and Wealth Newsletter!

Here’s to your health and wealth,

Wiley P. Long, III
President – MediGap Advisors

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