Latest news with #longTermCare
CBC
7 days ago
- Business
- CBC
Yellowknife long-term care home seeking gov't reimbursement for 2023 evacuation costs
Social Sharing A Yellowknife seniors' care home is still in debt from the 2023 wildfire evacuation and says the N.W.T. government should help pay it off. AVENS, a not-for-profit organization that provides independent living and long-term care for seniors, moved 57 residents from its facility during the evacuation, racking up a bill of more than $1.3 million. Around $900,000 of those costs have been reimbursed by the federal government, and in a news release last week AVENS said it wants the territory to pay the rest. AVENS CEO Daryl Dolynny says the debt has forced the organization to take out a second mortgage on one of its properties in order to keep some cashflow. "This has been gravely overlooked for far too long," said Dolynny. Dolynny said that the organization was severely short-staffed during the evacuation. About a quarter of the staff was on hand to find space for its clients — plus the extra clients the territory put in its care — in Edmonton, without guidance from the territory. He said the territory placed evacuees from Hay River and Fort Smith in AVENS' care days before Yellowknife's evacuation, and up until the day of. "To be in a position where we actually acquired other seniors and elders with severe cases of dementia… We did the right thing and we would do it again. All we're asking is, pay for the fair and reasonable cost that it took us to manage this," Dolynny said. Being short-staffed meant the organization developed an incentive program to pay staff members extra during the evacuation, according to Dolynny. AVENS's news release also notes that it provides care under contracts with Northwest Territories Health and Social Services Authority (NTHSSA), and that those contracts are only for providing services at the AVENS facility in Yellowknife. It says the lack of guidance during the evacuation made an already complicated situation even more so. NTHSSA says costs can't be covered In an email, NTHSSA spokesperson Krystal Pidborochynski said the costs AVENS is trying to claim doesn't meet the standard for reimbursement under the territorial disaster assistance policy. "While incremental staffing costs such as overtime or hiring additional staff may qualify as disaster-related expenses, incentive payments are ineligible as a disaster-related expense," Pidborochynski said. after-action review of the 2023 wildfire emergency is disappointing. NTHSSA said that ensuring claims align with territorial disaster assistance policy is "essential for maximizing federal cost-sharing and ensuring compliance with eligibility requirements."
Yahoo
18-05-2025
- Business
- Yahoo
Long-term care costs can derail retirement plans. Here's how to manage them
Even the best-made retirement plans can fail, especially when unexpected health care costs crop up. A recent study by Morningstar found that costs for long-term services and supports (LTSS), including things like in-home care, assisted living and nursing home facilities, can have a dramatic impact on retirement plan failure rates. To understand the impact of long-term health care costs, Morningstar researchers used a proprietary model of U.S. retirement outcomes to simulate two different groups: a baseline group where LTSS costs were incurred and a group where LTSS costs were set to $0. In the first group, researchers found that 41% of households are projected to run out of money in retirement. That figure dropped dramatically in the second group, where there were no long-term care costs, to a 26% failure rate. The study found that long-term care costs can vary drastically between men and women, as women tend to live longer and are more likely to require long-term care. A majority of single women (52%) were projected to run out of money in retirement, due in part to long-term care costs. When those costs were removed, the retirement failure rate for single women dropped to 34%. READ MORE: Remote workers are delaying retirement. Is that a good thing? By comparison, roughly one in three single men were projected to run out of money, partially as a result of long-term care costs. In a group where no care costs were incurred, the rate of retirement failure dropped to 23%. Factors like gender and family history may lead some people to forgo planning for long-term care costs. Financial advisors say that's a mistake. "Although not all households will face a long-term care need, because we don't know who will need it, all must acknowledge it as a potential need and prepare accordingly," said Jessica McNamee, founder of Sirius Wealth Strategies in Bellefontaine, Ohio. As the share of Americans age 65 and older rises over the coming years, demand — and costs — for long-term care are expected to rise. Misunderstandings about the health care system have left many Americans unprepared to cover those costs, the Morningstar researchers wrote. Medicare does not cover long-term care costs, and while Medicaid does, individuals must meet strict financial and functional eligibility requirements to qualify. For baby boomers requiring long-term care, costs can average nearly $250,000 from retirement age through death, according to Morningstar's research. READ MORE: Financial advisors are divided over this RMD tax strategy "Given the high costs of LTSS and the strict eligibility requirements for Medicaid, private long-term-care insurance is an option for those looking to protect their assets," the researchers wrote. "However, the market is rather limited." A relatively small portion of Americans — some 7.5 million — have such policies, leaving many to depend on personal savings or reduce their assets to qualify for Medicaid when care becomes necessary, the researchers wrote. Michael Hausknost, secretary for the Orange County chapter of the Financial Planning Association, said that he recommends people purchase a long-term care (LTC) policy in their early 50s, when costs are lower. "Speaking from experience, where my late wife and I dealt with her aunt's care and where I now care for my own mother, who is in a memory care facility, the well-documented high cost of these facilities is something few can afford, particularly in high-priced states," Hausknost said. "So, having an LTC policy to offset all or much of the cost is critical." LTC plans are widely recommended by financial advisors to help protect against long-term care costs. But high premiums associated with these plans push many clients toward other solutions. For ultrahigh net worth clients, advisors say that self-insuring can be a viable option. This can be particularly appealing for clients who don't believe they will incur long-term care costs, since they won't have to pay any LTC insurance premiums. However, if a client decides to go this route, they should have at least $1 million set aside for care costs, Hausknost said. Unpaid caregiving provided by family members can also help mitigate long-term care costs, but advisors are typically skeptical of that as a solution on its own. "I insist every client of mine have a plan of how care would be provided," said John Power, a financial advisor at Power Plans in Walpole, Massachusetts. "And if the plan is 'my daughter,' I want them to have a documented agreement to that plan." READ MORE: How to plan ahead for diminished capacity and prevent elder abuse Advisors say that other instruments, like reverse mortgages and certain life insurance policies, can also help retirees without LTC insurance to cover costs. "The use-it or lose-it nature of most insurance policies has led us to implement permanent life insurance policies with long-term care riders — for the appropriate situation — over the past several years," said Tyson Sprick, a financial advisor at Caliber Wealth Management in Overland Park, Kansas. "For someone who is likely passing on assets to their heirs anyway, this strategy enables them to do so in a tax-efficient way while also being able to tap into that death benefit for long-term care needs during their life, if necessary." While insurance plans are common, long-term care planning can be achieved in several ways, said Kris Etter, founder of Beacon Financial Planners in Houston, Texas. "It is our job to educate our clients on each one that may be suitable for them," he said. "Just this week, we discussed reverse mortgages with two couples. Prior to 2012, if a client asked me about a reverse mortgage, I would have suggested they fire me. While they are not for everyone, they can be the Swiss Army knife in a retiree's toolbox. LTC is just one option they solve for. We don't ask clients, 'Do you have LTC insurance?' We ask 'What is your LTC plan?'"
Telegraph
14-05-2025
- Business
- Telegraph
What is an immediate needs annuity and how does it work?
Planning for long-term care can be overwhelming, especially when faced with the emotional and financial pressures of arranging support for yourself or a loved one. One option that can provide peace of mind and financial stability is an immediate needs annuity. In return for a lump sum payment, this provides a guaranteed, regular income for life to help pay for care fees. Here, Telegraph Money explains how immediate needs annuities work, the pros and cons and how to decide if they are right for you. What is an immediate needs annuity? An immediate needs annuity, also known as an immediate care annuity, is an insurance product that pays for an individual's care home fees for the rest of their lifetime, according to Lucie Spencer, of Evelyn Partners and member of the Society of Later Life Advisers. She said: 'They are available to anyone who is receiving care, either in their own home or in a care home, who is liable for paying for their own care. Usually when someone goes into care, it is the attorneys who need to work out how best to fund the costs.' When you buy an immediate needs annuity, the annuity provider makes regular tax-free payments directly to a registered care provider, in exchange for a single lump sum payment. Andy Page, of Old Mill Financial Planning, added: 'The amount of the lump sum varies for each person and is calculated after full analysis of the individual's health conditions and prognosis. They typically return 20-35pc of the lump sum as income on an annual basis, but this can vary hugely.' How does an immediate needs annuity work? An immediate needs annuity works in a similar way to a pension annuity, but the income goes directly towards the cost of your care. Because it isn't treated as income, no income tax is applied, meaning more of the payment can cover your care costs compared to a standard annuity. Nicholas Hamilton, of tax and advisory firm Forvis Mazars, explained that 'as well as deciding the level of income that is to be paid from the annuity (which is often set to cover the shortfall between existing income, such as the state pension, attendance allowance, private pensions), and expenditure (care fees and personal expenses)', optional extras are available for your annuity. However, these can push up the cost. One example is capital protection, which allows a portion of your original lump sum to be returned to your estate if you die soon after the plan begins. Many annuities also include annual increases, known as escalation, to help your payments keep up with inflation. Mr Hamilton said: 'Providers typically will allow the annuity to increase at set rates, for example 2pc per annum, 3pc per annum or another amount (typically capped at a maximum of 8pc per annum), or else link the increase to inflation (RPI).' Some plans also offer a deferred period, where the income is paid out after a set time – usually between one and five years. These plans can be cheaper, but you'll need to find other funds to pay for care fees during the deferred period. Mr Hamilton added: 'Once in payment, the care annuity will continue to be paid for the rest of the individual's lifetime, with the ability to have the income paid to another provider should the care needs change, such as moving care home. 'If the individual no longer requires payments to be made to a UK registered care provider, they can be paid to the individual, but at this point they will then be subject to income tax.' How much does an immediate needs annuity cost? The cost of an immediate needs annuity depends on several factors, such as: Your age Your health and medical history The income to be paid from the plan Any optional plan terms you've selected Your provider's annuity formula. When calculating the cost, annuity providers will usually request medical reports from your GP as well as the care home, where relevant. 'Generally speaking, the older and poorer health an individual is in, and the least optional benefits included, the cheaper the cost of the annuity,' said Mr Hamilton. Example quotations from care provider Just Group show the average cost of providing an initial income of £20,000 per year at various ages. Based on the average health condition of a person entering residential care, with conditions such as dementia, heart disease and stroke commonly featuring, the cost of a care plan ranges from £99,202 for a 75-year-old (with no escalation), to £43,829 for a 100-year-old. On top of the cost of the annuity itself, you must factor in the cost of financial advice, as immediate needs annuities are only available through accredited financial advisers. These advisers must hold additional qualifications to provide guidance on these products due to their unique features and the vulnerability of the clients they are designed to support, said Ms Spencer. She added: 'Evelyn Partners charges a fixed fee for providing this type of advice. For obtaining the quotations there is a fee £750 and if an individual decides to proceed with annuity advice only then a future £1,750 is payable. Should they decide to proceed with other areas of financial planning, such as investment advice, then further fees are chargeable.' The key differences between a pension annuity and an immediate needs annuity are as follows: Should you get an immediate needs annuity? Whether you should take out an immediate needs annuity will depend on your circumstances, including whether you have the funds available to buy the plan in the first place. Mr Hamilton said: 'Immediate needs annuities are particularly beneficial to individuals who are expecting to self-fund their care needs for the rest of their lifetime, who like and would prefer to have some certainty over the continued provision of their care and/or the capital they can ring-fence for their beneficiaries.' However, they won't be right for everybody, particularly if you don't require care right away, expect your care needs to be short-term, or you want the option to access your money in the future. Carolyn Matravers, of later life financial planning firm Bluebell Financial Management, added: 'It is essential to seek specialist advice from a financial planner accredited with the Society of Later Life Advisers to determine whether an immediate needs annuity is appropriate for your individual circumstances.'
CTV News
13-05-2025
- CTV News
Woman charged after allegedly using another person's credentials to work at GTA long-term care homes
A 31-year-old woman has been charged for allegedly using somebody else's nursing credentials to get work at long-term care homes in the Greater Toronto Area. Toronto police said the woman, who was employed at several nursing homes between June 2020 and June 2024, also allegedly fabricated several documents to gain employment. Their investigation led them to identify the suspect, locating her on Sunday. She has been identified as Anh Nguyen. Police have charged her with two counts of uttering forged documents, two counts of impersonation to gain advantage and two counts of fraud over $5,000. They have released a photo of Nguyen, as investigators believe she may have worked at additional locations under false pretences. Police are urging anyone who believes they may have employed the suspect or had contact with them in a professional capacity to contact them at 416-808-4100 or Crime Stoppers anonymously at 416-222-TIPS (8477).
