Screwed!!! Corporate welfare comes out of YOUR pocket!!!

[Rick Myers]

Longtime DUers know that I lost my mom last year and my dad has suffered from Alzhiemer's for years. He's been in a nursing home for over a year and now it's time to get him on Medicaid. Dad has to have less than $1500 in assets, we have already signed his railroad retirement ove TO the nursing home. Now I find out we MUST, by government decree, we MUST cash out all dad's insurance policies for CASH VALUE. This is the government STEALING money from my dad and giving it to big corporations.

Dad has about 7 policies, all paid up over the years, some worth 5 to 7 thousand dollars, BUT, we must surrender them for cash value at pennies on the dollar. A 5 k policy cashes out for $1200!!! Dad paid these bastards for all those years, now he's not even allowed to collect.

This is WORSE than corporate welfare, this is government sanctioned theft!!!

:grr:

[Sarah Ibarruri]

1. How does that work? I'm sorry I don't really understand insurance and cashing out....

... but it is rather shocking that such a thing can happen!

[Captain Hilts]

2. Yes, please explain this. I do not understand. nt

[williesgirl]

3. No - you can sign over those policies directly to the funeral home/cemetary instead to cover

burial expenses. Medicaid can't take them first. Check w/your funeral director/cemetary manager first.

We did this when my Mom had Alzheimer's and was going into the nursing home. Plus it really helped us when she passed away.

Hope this helps.

[msongs]

4. are they policies purchased to pay out after death and now you want to change the deal?

if that is the case, the government is not doing anything to you and it is not government sanctioned theft. Does cashing out the policies violate the agreement your dad made with the companies when he signed the contracts?

if the policies are supposed to be paid out any time you want them to do so and your choice of going on medicaid is being threatened because of the policies that is a different matter.

[samplegirl]

5. I feel bad reading this

My father passed away in 1995 and my mother moved in with me in 1997 at that time........she put everything she owned into my name and out of hers.
Sad to think that parents try to make provisions for their spouse or children only to find the government ready to take it all from them.
Sadly...medicare does not cover everything so I was lucky that I had my mothers money for a backup in order to give her good quality care in my home.
I just hate reading about your situation as it is not fair to the the elderly to have to depend on medicare which means mediocre care. His insurance should be a back up for what medicare does not cover.

[bridgit]

6. That has been the plan all along, maximal returns/limited liability...check it:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=385x65337 sorry for the ways in which these matters have effected your family :(

[Bitwit1234]

7. I know that in the state of Maryland

you have to sign over social security. And you have to leave the person's life insurance to the state. You don't have to cash it out, but you do have to make the state the beneficiary. You also have to sign over any and all assets. Say you parents had a savings account for 1,000,000....the state gets it. say your parents owned a house worth that much....the state gets it.

The only way you could save all this is to have your parents sign it over to you three years before they were admitted to the Nursing HOme.

This would give you some respite, if you lived in Maryland.But I used to work in the Department that handled this and I know it was devastating to some families. They would get mad at the case worker but it wasn't the case workers fault.