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.
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