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Medicare

Three Levels of Care

There are three levels of care that come into play as far as Medicare is concerned:


  • ACUTE CARE – “Skilled Inpatient Care” – Under the direct supervision of medical professionals – covered by Medicare/Med Supp.
  • INTERMEDIATE CARE – Patient requires more assistance than custodial care, and may require nursing supervision, but does not have a true skilled need – generally not covered by insurance.
  • CUSTODIAL CARE – Care provided to assist a patient in meeting the activities of daily living but not requiring intermediate or skilled care.


Intermediate care, and custodial care, are NOT covered by Medicare or Med supplement policies. These expenses have to be paid for out of pocket, often through the liquidation of accumulated assets across various accounts.


Roth IRA's Roth Conversions
Contribution or Conversion Limit? Yes - $7000/year - age 50 or over None - you can convert any amount at any time, any age.
Mechanics Send a check to your Roth IRA custodian, or journal over money from another account. Submit a Roth Conversion form or request to your IRA custodian, and decide on withholding (if any) right on that same form. Taxes will be due by April 15th of the following year.
Income Limits Yes - if you are single and your Modified Adjusted Gross Income (MAGI) is over $140k, you cannot contribute to a Roth IRA. If you are married and your MAGI is over $206k, you cannot contribute to a Roth IRA. There are no income limits. You can convert regardless of how much money you make.

Three Levels of Care for a Person with Chronic Condition

All across the country, the expenses associated with long term care, or a chronic illness, are very high-more expensive on the coasts generally, but very expensive nevertheless. There are three levels of care associated with a person suffering with a chronic condition:


  1. At Home Health Care- this is what most people would prefer, if possible.
  2. Assisted Living- these facilities are useful when the level of care needed cannot be provided to the patient at their home, for whatever reason. Assisted living facilities may have several levels of care, and may be connected to a nursing home facility as well, but are for people who do not need the level of care that a nursing home provides. Assisted living facilities may be owned or rented, and are generally a lot less expensive than a nursing home, on an annual basis.
  3. Nursing homes- for patients who need around the clock care, or monitoring, and who are incapable of taking care of themselves for either cognitive or physical reasons. The cost of this constant care is terribly high, often over $100,000 per year, and even higher in the northeast and west coast.


New Century Planning has two associates who are Certified in Long Term Care® (CLTC). This means we are very well versed with the costs and situations that most often accompany a long-term care event. Click here 


A long-term care “event” or chronic illness, is actually a series of consequences for other people in your life. It is not just a series of risks and consequences for you!



So, we do want to talk to you about this subject- a potential situation, that left unattended to, if it occurred, would have serious, if not irreversible consequences for those people who you invited into your life, or who you have been responsible for.


Common Questions

  • What are the non-financial consequences of a long-term care event?

    • Providing care does not bring families together…and it often tears them apart.
    • If you ever need care, your life doesn’t end… but the life and lifestyle of someone you love most likely will…
    • What choices will your loved ones have if you do not address this risk with a solid plan?
    • This can be particularly difficult or painful in second marriages if there are two sets of children.
    • Healthy kids (with busy careers or lives) do not want to take care of their parents. They want to continue living their life. In reality, it is not their responsibility- it is yours- to try your best not to interrupt and disrupt their lives
    • Providing care for an extended period can make a healthy caregiver unhealthy! We can’t imagine you’d ever want your kids or nieces and nephews to be involved with this situation!
    • It is very common that grown children end up not talking to each other for years, after a long-term care event occurs.

  • What are some unfortunate but common phrases associated with an unplanned for extended care situation (esp. with 2nd marriages)?

    • “Why aren’t you taking care of your father, instead of my mother?”
    • “I don’t have the time-my job is too demanding!”
    • “I live too far away! I can’t afford to take off work!”
    • “My own health is not that good! I’m not qualified to do all of this anyway!”
    • “I’m having problems with my kids/spouse/siblings/job/etc.!”
    • “I wish I had a plan for this nightmare!”

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