Medicare end of Life Planning

There has been much debate over the Obama Administrations new health care bill.  It seems that the debate leaves us with more questions than answers, however, there is a new provision in the bill that seems clear and needed. Medicare will now pay doctors for end of life counseling and care.

End of Life Planning has, for obvious reasons, been a controversial subject.  It can be broken down into "care for family" and "care for the patient."  Many people create a will and/or trust to help with the dispoistion of material possesions and provide final instructions.  Creation of wills or trusts usually takes place well in advance of any illness that may occur.

"Care for the patient" is another story all together.  We are seeing increasing numbers of patients delaying hospice care until one week before death.  Though the reason for the delay is obvious and understandable, it might also be because they are unsure or unaware of the resources that are available.

As mentioned in 2011, Medicare will provide for hospice care that covers palliative care services for people with terminal illnesses (a doctors statment must be provided that says the patient has 6 months or less to live).  Medicare might also cover end of life counseling, skilled nursing services to home health patients and some precription drugs for skilled nursing facilities.

Perhaps even less well known is a rider that is usually attached to most life insurance policies. The rider, which is usually free or of little cost is called the Accelerated Death Benefit.  It can provide 50%-80% of the death benefit to a policyholder that has been deemed to have 12-24 months or less to live by a doctor. If you own a life insurance policy, check with your carrier for details and restrictions.

While no one wants to think about the end of their life, at least knowing the options might help to make things less stressful in an already overwhelmingly stressful time.

Say what you will about the new health care bill, but this is one provision that really can help many Americans in their darkest hour.  

If you have had any experience with end of life planning and the accelerated death benefit of a life insurance policy, we'd like to hear from you here. Post a comment or question.