Financial Security of Elderly Couples at Risk Under Proposed Regulations 

Written By: Jeffrey A. Marshall

  The economy has weakened, but health care costs continue to rise.  As a result, Pennsylvania, like most states, is facing potentially large budget deficits.  Last year, the Governor asked Pennsylvania's Department of Public Welfare (DPW) to come up with ways to limit government spending on health care.  As a result, DPW has issued proposed regulations that will limit the financial security for elderly individuals who have a spouse in a nursing home. 

The expense of nursing home care, which averages well over $5,000 a month in Pennsylvania, can rapidly deplete the lifetime savings of elderly couples. In 1988, Congress enacted provisions to prevent what has come to be called "spousal impoverishment" which can leave the spouse who is still living at home with little or no income or resources. Congress wanted to help ensure that this impoverishment would not occur and that community spouses would be able to live out their lives with enough financial security to provide independence and dignity. 

Now DPW has proposed changing the way that the spousal protections are calculated so that the spouse pays more while the government pays less of the costs of nursing home care.  The effect will be to expose the community spouse to impoverishment after the spouse in the nursing home dies.         

The regulations, which have been much criticized by elder law attorneys as well as many legislators, are not yet final.  DPW anticipates that the new regulations will become final and will take effect in the Spring of 2003, but they must still pass regulatory scrutiny, which may be severe.  They  may also be countermanded by Pennsylvania's new Governor when he takes office in January.  At this point, the outcome is unclear. 

The spousal impoverishment regulations are only one of the DPW proposals. To review the proposed regulations online, click here http://www.pabulletin.com/secure/data/vol32/32-40/index.html and then scroll down to the section covering the Department of Public Welfare.   For more information on the proposed regulations, see Attorney Marshall's comment letter to DPW, which is available on the Marshall and Associates website at Comments on Proposed Medicaid Changes. 

 

Marshall & Associates' Welcomes New Staff

 

  Marshall & Associates is growing and we are excited about the newest members to join the M & A staff. Their diverse backgrounds and compassion towards the elderly provide a dynamic addition to our firm!

Attorney Kevin R. Grebas is a native of Northeastern Pennsylvania. He received a B.S. in Political Science from the University of Scranton and his law degree from Dickinson School of Law. While attending Dickinson, he spent two years working as a legal intern for the Torts Litigation Section of the Pennsylvania Office of Attorney General. He also co-authored an ethics advisory opinion for the Pennsylvania Bar Association Committee on Legal Ethics and Professional Responsibility. Kevin serves Northeastern Pennsylvania clients from the Wilkes-Barre office of Marshall & Associates. He is happy to be back among his family and friends in the Wyoming Valley. 

Suzanne K. Starr is a Geriatric Planning Specialist at the Elder Law Firm of Marshall & Associates. Before joining Marshall & Associates, Ms. Starr worked as a Social Worker and Activities Director at the Williamsport Home. She also managed their adult day care program. Suzanne is certified by the National Certification Council of Activity Professionals. As a Geriatric Planning Specialist, she will assist individuals, couples, and families with long term care and nursing home planning.

Josephine Balsamo, BSW, LPN is also a Geriatric Planning Specialist with Marshall & Associates. Previously, she worked as Director of the Social Services Department at Bloomsburg Health Care Center. Ms. Balsamo also worked with Hospice St. John where she gained valuable experience caring for the physical and emotional concerns of terminally ill patients. Josephine is currently a member of the National Association of Social Workers (NASW). She earned her Bachelors Degree in Social Work from Bloomsburg University.