In “Revenue crisis ahead, state warned,” (Houston Chronicle, January 3, 2012, B1, B7) http://www.chron.com/default/article/Leaders-warn-of-more-budget-problems-in-Texas-2972833.php Gary Scharrer reported that at least a $15 billion shortfall in the state Medicaid program has been projected for next year. This mammoth deficit can be largely attributed to TX governor Rick Perry’s insistence that the 2011 state budget be balanced not with any tax increases, but via massive cuts in social and educational programs.
A similar approach is common in many states and Congress, much to the dismay of proponents of social programs for the needy. Sadly, this means that there will be even less financial support for long-term care (LTC) financed by Medicaid for the least fortunate in our society.
These cuts will be bad news indeed for anyone who has been counseled to “game the system” by spending down or sheltering their assets and then claiming indigent status to qualify for LTC covered by Medicaid.
Responsible planning for their final years, including LTC insurance, will ensure that increasing numbers of Americans can avoid the emotional & physical stress that 70% of families will face as a loved one needs care. And such planning will also greatly reduce the financial burden that so many families will face.