On March 21, 2010 the Patient Protection and Affordable Care Act (PPACA) became law. Some provisions of the new health care bill signed by President Obama will directly benefit senior citizens.
First, there is a new federal long-term care insurance program that can help meet the staggering cost of long-term care. This part of the new law is called the “Community Living Assistance Services and Supports Act” or the “CLASS” Act. This federal insurance provides up to fifty dollars ($50.00) per day (approximately $1500 per month) for persons to use when they need help with the activities of daily living.
Significantly, while the new federal insurance will not provide enough to cover the high cost of a nursing home (currently almost $7,000 per month!), it will provide a generous financial supplement to persons remaining at home, in adult foster care or assisted living centers. Many persons whose fixed incomes are not quite enough to afford these alternative care methods will now be able to do so.
The CLASS Act is designed to help people save for long-term care needs by having premiums deducted from workers’ paychecks unless they opt out. Enrollees become eligible for the benefits after a five-year period when they “vest”. The exact amount of benefits will be determined by the Department of Human Services. Benefits will vary depending upon the level of the individual’s disability. The program is expected to start in 2011.
Second, the new law works toward closing the prescription drug “Doughnut Hole.” It provides those seniors in the Medicare Part D “Doughnut Hole” with a $250 rebate check starting in 2010. Seniors who enter the “Doughnut Hole” in 2011 are expected to save over $700. By 2020 the savings is expected to be $3000 and eventually the “Doughnut Hole” will be closed altogether.
Third, there are additional Medicare benefits. For example, Medicare beneficiaries will receive greater access to preventive care by elimination of co-payments and deductibles for those services. There are also important provisions to improve care coordination for those senior citizens who have multiple physicians, effective January, 2011. Moreover, there is an extension of the Medicare trust fund wherein the life of the fund is extended by almost a decade.
Fourth and finally, the new law expands Medicaid coverage for community (home) based options and gives states incentives to expand these by offering more federal money to those states that do so. Specifically, the new law authorizes a Medicaid “Balancing Incentive Payment Program.” States will receive additional federal funds if they shift more of their Medicaid spending toward non-institutional care. States are encouraged to implement programs wherein individuals can receive care in their homes – a much desired goal for most senior citizens. What changes will be made in Michigan will depend upon to what extent, if any, our State elects to participate.
At Heritage Elder Law we are committed to keeping you abreast of significant changes in the law that affect the elderly and those who care for them. Working together we can educate and empower the senior population and their caregivers to more effectively provide for this fastest growing segment of our population.
