The Website isn't working.....Millions are losing their health insurance.....The Medicaid rolls are swelling - Is this the REALITY of healthcare reform?

Today, there are simply more questions than answers, yet over the summer, we discussed the specifics regarding the Affordable Care Act (Obamacare) and its lack of any meaningful coverage for Americans for Long-Term Care.  

Instead, a Long-Term Care “commission” was created to recommend reforms for the financing and delivery of Long-Term Care services in the future.   The Commission, which first met on June 27, was directed to report back to Congress by September 12.  Put aside the chaos of the implementation of Obamacare; with respect to Long-Term Care it appears we are right back where we started..... 

Howard Gleckman, of Forbes, was correct at the time when he wrote, "the commission has been hamstrung since it was created last January as part of a deal that also repealed the CLASS Act.   The panel was given a lifespan of only six months from the time its members were appointed.   It had no budget, no staff, and a charge to reform financing and delivery of long-term care and address pressing workforce issues.  There is no requirement that Congress vote on any of its recommendations." 

Recently, Mr. Gleckman wrote a follow up article entitled "Divided Congressional Long-Term Care Panel Will Urge Modest Reforms, Deadlocks on Financing".  His opening paragraph sums up what most industry experts already thought:  "A divided congressional Long-Term Care commission has adopted a package of recommendations aimed at improving the nation’s long-term supports and services.  However, while a majority of the panel agreed on some modest delivery and workforce reforms, it could not reach a consensus on all-important financing solutions."

Kaiser Health News quoted Grace-Marie Turner, president of the Galen Institute, an Alexandria, Virginia think tank, who was appointed to the commission.  She indicated that "the fundamental issue in getting people the long-term services and supports they need is an issue of financing, and this commission did not address that issue."   She went on to say that "if Americans depend on Medicaid for long term care, the safety net will be shred."   

The article also mentions that the commission had the option to prepare legislation which would have been required to be introduced in the U. S. Senate and House of Representatives.   According to Ms. Turner "We didn’t have the resources or time to get that done."

What a long, strange trip it's been.....

In our opinion, the Commission was doomed to failure because it's simply unable to address the enormity of the issues surrounding Long-Term Care.

Addressing America's looming Long-Term Care crisis requires a critical look at Medicare, Medicaid and Social Security; along with the financing & deliver of Long-Term Care services.  At this point, whether you’re a consumer or an advisor, there are three certainties you should recognize.....

1)  Obamacare & Medicare lack any meaningful Long-Term Care coverage for Americans.

2)  Medicaid is essentially broken (and broke); and planning to become destitute to qualify for the progam's Long-Term Care coverage is not sound financial planning.

3)  Politically and financially - there is little government can do to create a sustainable program which addressed the future Long-Term Care needs of Americans.

With the aging of 76 Million "baby boomers", you and/or your clients should seriously consider the financial impact healthcare in retirement will have on planning being done today.   Quite simply, without a Long-Term Care component, all of that planning may not be worth the paper it's printed on.....

I encourages you to consider the words of Ben Franklin and recognize that “if you fail to prepare, you prepare to fail”......With respect to Long Term Care planning, nothing could be more to the point.