Long-Term Care Crisis Prompts More Aggressive Collection Tactics
Insurance Industry Expert Shares Tips for Protecting Your Family from "Filial" Support Laws

Most people do not understand filial support laws, which are spreading to more states - 28 and counting, says insurance industry expert Chris Orestis.

"We're living longer, but for many of us, that also means we'll require some type of  long-term health care at some point," says Orestis, a longtime industry insider and author of "Help on the Way," (http://ebook.lifecarefunding.com/), which explains the problem of funding long-term care and offers solutions.

"It's a problem no matter what your age because we're experiencing a "Silver Tsunami" of retiring baby boomers and the costs of long-term care can be extremely high. Medicaid is the only option for many seniors, and that's straining the funding for that safety net. Many people are not eligible for Medicaid, but also cannot afford the expense of care."

As a result, long-term care providers and the federal government are bringing lawsuits and mandating claw-back actions against families, insurance companies and legal advisors, he says. Many are turning to filial support laws, which impose a duty upon adult children for the support of their impoverished parents. Medicaid also has the right to sue families in probate court to "claw-back" funds spent on care.

Just one recent example involved John Pittas, a 47-year-old restaurant owner who was sued by a nursing home company for $93,000 in expenses incurred by his mother over a six-month period after she was denied Medicaid eligibility.

"The court finding even granted discretion to the nursing home company to seek payment from any family members it wished to pursue," says Orestis.

To avoid a financial catastrophe, he says families should consider these options:

•  Know your and your family's health-care rights as a veteran. Veterans who have honorably served their country should take advantage of their VA benefits - not only for their well-being, but also for their family's health. Additional programs that may apply to family members include the VA Civilian Health and Medical Program (CHAMPVA), a comprehensive health-care program in which the VA shares the cost of covered services and supplies for eligible beneficiaries; the spina bifida health-care benefits program for certain Korea and Vietnam veterans' birth children; and TRICARE, another health-care program serving uniformed service members, retirees and their families.

•  You can convert your life insurance policy for long-term care. There is $27.2 trillion worth of in-force life insurance policies in the United States, according to the National Association of Insurance Commissioners - that's triple the amount of home equity today! Rather than cancel or drop a policy to save on premiums when faced with long-term care needs, you can use it to pay for home care, assisted-living or nursing home expenses. "I've been lobbying state Legislatures to make the public aware of their legal right to use this option," says Orestis, CEO of Life Care Funding, (www.lifecarefunding.com). Seniors can sell their policy for 30 to 60 percent of its death benefit value and put the money into an irrevocable, tax-free fund designated specifically for their care.

•  Don't be so quick to attempt to qualify for Medicaid. Many people who need significant long-term health care can't afford it, so they drop life insurance policies that they've been carrying for years in order to qualify for Medicaid. Families often turn to Medicaid to pay for nursing home care, but it comes with many restrictions, including choice of facilities. In a situation where one spouse is healthy and the other is not, the spouse living independently will also face restrictions on the amount of assets he or she can retain, for instance, a maximum $2,898.00 for monthly maintenance.

About Chris Orestis

Chris Orestis, nationally known senior health-care advocate, expert, and author is CEO of Life Care Funding, (www.lifecarefunding.com), which created the model for converting life insurance policies into protected Long-Term Care Benefit funds. His company has been providing care benefits to policy holders since 2007. A former life insurance industry lobbyist with a background in long-term care issues, he created the model to provide an option for middle-class people who are not wealthy enough to pay for long-term care, and not poor enough to qualify for Medicaid.

Plan to attend the Helping with Humor fundraising event benefiting the Humility of Mary Shelter, Inc. on Sunday, May 4^th at the Establishment Theatre in Rock Island. ComedySportz Quad Cities and the Humility of Mary Shelter, Inc. have partnered once again to provide you with an evening of comedy for a cause, featuring a stand-up performance by comedian Chris Schlicting followed by a ComedySportz match! This is a family friendly event. Tickets are only $10, which in turn supports one bed for one night at the Humility of Mary Shelter. Doors open at 5:15 and the fun starts at 6:00. Please purchase your tickets by calling the Establishment Theatre box office at (309)786-1111.

Humility of Mary Shelter, Inc. provides emergency shelter, transitional and permanent supportive housing programs that offer opportunities for men and women experiencing homelessness to become emotionally, mentally, and physically more stable. The shelter is a 501(c)(3) nonprofit organization that has proudly served the Quad City community since 2008.

Last summer, Tiphanie Cannon took her tremendous baking talents to the Freight House Farmers Market for the first time. As they gobbled up her delectable cupcakes, cookies and other treats, about every fourth or fifth customer begged her to open a storefront where they could get her goodies more often, all year-long.

This May, they will get their wish.

Cannon's new bakery - Oh So Sweet - will occupy the last open commercial space in the recently renovated United Cigar Building. It was the increasing momentum of energy and re-development in downtown Davenport that helped Cannon pick the space on Main Street.

"Downtown is super cool," she said. "I'm not a strip mall kind of girl. We're going for an urban chic, big city vibe."

This will be accomplished with splashy displays in the large windows lining the front of the building, as well as a variety of plush seating areas just inside the entrance. A gas fireplace, a super long counter and some other unusual touches will help make Oh So Sweet's environment unique, Cannon said.

More jobs will be coming downtown as well, with Cannon planning on hiring 9 employees to man the store. She's covering all her business bases by offering walk-in baked goods, a line of special wedding cakes, and the ability to host events like bridal and baby showers and other parties.

"We're going to be a multi-purpose bakery," she said.

Cannon also praised the business climate in Davenport, noting that the project was assisted by a $20,000, interest-free small business loan. She also recently won $1,000 in the Quad Cities Fast Pitch entrepreneur contest for taking first prize in the Restaurant/Entertainment category.

"Everyone has been so supportive and helpful," she said. "I'm really excited to get open."