The U.S. Department of Health and Human Services estimates the average annual cost of U.S. nursing home care to be $74,820. But in California, the Department of Health Care Services estimates that cost to be $91,250. 

Recently, public debate about long-term care insurance has intensified, with news outlets including the Los Angeles Times, CBS and USA Today and organizations such as the American Association of Retired People (AARP) and the SCAN Foundation weighing in on the subject.

Much of the debate centers on whether consumers can adequately understand the opportunities and risks that long-term care insurance offers.

One often-cited issue is inflation. Many long-term care insurance policies offer a fixed, daily benefit amount (often between $50 and $300). On average, a day of care in a California nursing home costs $250, according to the Department of Health Care Services. But, as AARP warns, the rising costs of health care may cause daily costs to rise significantly as well.

If that happens, the contractual policy benefits would cover a lower percentage of the cost of care in ten or twenty years, when the policy would be most needed. 

AARP also notes that some insurers offer inflation protection at an extra cost.

Many states, including California, offer a state-sponsored partnership program that, in some situations, allows consumers to pay into a long-term care insurance plan that will provide later benefits without affecting eligibility for Medicaid (in California, Medi-Cal).

California Health Advocates, a non-profit advocacy group, recommends that anyone planning to purchase long-term care insurance consult with an accountant or elder law attorney before doing so.

For information and advice about planning – with long-term care insurance or by other means – contact Gilfix & La Poll Associates, LLP.

Pioneers of Elder Law – For over 30 years, Gilfix & La Poll Associates LLP has innovated creative legal solutions to help you manage and plan the future of your estate.
To contact an estate planning lawyer visit http://www.gilfix.com/ or call 800.244.9424.

An article by Shan Li says that nearly 44 percent of American households would find themselves in financial ruin if they fell victim to one emergency. That is according to a study by the nonprofit Corporation for Enterprise Development (CFED). Those families could not pay for their basic living expenses for three months if they lost their jobs or became too sick to work. Furthermore, nearly one third of Americans do not have a savings account at all.

In Florida, the rate is even worse than the nationwide average. The CFED measures the “liquid asset poverty rate,” defined as the percentage of households without enough cash or other liquid assets to live at the poverty level for three months if their income stopped. Florida’s rate is 51.9 percent, meaning more than half of Florida families fit this profile. That puts the Sunshine State 35th out of the 50 states.

Experts say stagnating wages, rising prices, and high-interest debt may be to blame for the discouraging figures.

The second article, by Alejandro Lazo, explains one widely-held form of high-interest loan called a payday loan. A payday loan is a small, short-term, unsecured loan that depends on the borrower’s ability to demonstrate that they are employed.

Although the loans are marketed as short-term, a study by the Consumer Financial Protection Bureau (CFPB) shows “high sustained use.” The CFPB found that the average payday loan customer took out 11 loans during a year-long period and paid a total of $574 in interest and fees. And the median number of days that borrowers remained indebted was 155.

The CFPB reports also found no real difference between payday loans and so-called “deposit advances” offered by some large banks.

High-interest debt creates a cycle of poverty that is very difficult to escape. It is important to make every effort to build a cushion of cash reserves so that you can weather a storm without resorting to burdensome debt. If you feel like your debt is keeping you from getting your head above water, it may be time to speak with an experienced bankruptcy attorney.

O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Offices, P.A. If you need a Brandon bankruptcy lawyer, attorney, call 813.654.5777 or visit http://www.brandonlawoffice.com.