About the Book
|
 |
Excerpts
|
 Chapter
11
CHOOSING A MEDI-CAL ADVISOR
Questions to ask prospective Medi-Cal advisors
First ask yourself: Am I typically penny-wise and pound-foolish? This
is an important consideration when seeking a competent elder finance
or elder law advisor.
If you answer ‘Yes’ to the above question, then you will
likely be satisfied working with advisors who charge lower fees and deliver
limited services. For example, former Medi-Cal eligibility workers advertise
their services as Medi-Cal advisors. While these advisors understand
Medi-Cal’s rules and regulations, they are often unschooled about
financial planning, investing and legal matters. If you are content to
pay for Medi-Cal-only guidance, such advisors may fulfill your needs.
They typically charge less than professionally credentialed financial
advisors and elder law attorneys.
Another avenue for penny-wise, pound-foolish consumers
is to secure assistance from advisors who claim to charge nothing to
assist you with
your Medi-Cal application. This actually comes under the heading of TINSTAAFL:
There Is No Such Thing As A Free Lunch. When queried how they are paid
for their services, these advisors answer with some variation on this
theme: “The companies I work for pay me.” Translated into
plain English, this means they receive commissions for re-routing your
assets into different investments. Medi-Cal qualifying annuities are
typically the investment vehicle of choice. Caveat emptor: Let the buyer
beware.
If you prefer to use professionally-credentialed advisors who tell you
upfront their services and fees and who know how financial planning,
investing and legal matters integrate with Medi-Cal, then the following
list of questions will prove helpful to finding and selecting a competent
advisor. These questions are designed for consumers who know little or
nothing about Medi-Cal or Medi-Cal advisors.
Q. How can a family increase the amount of assets a spouse at home can
keep?
A. Best answer: The advisor will talk about increasing the Community
Spouse Resource Allowance through a fair hearing or court petition. Whatever
is said, go to the next question.
Unacceptable answer: “There is no way to increase the amount of
assets a spouse can keep.”
Q. Can you provide names and contact numbers for two clients that you
have represented at fair hearings?
A. Best answer: “Yes, I can. However, I must first check with them
before I give you their phone numbers.”
Unattractive answer: “I’ve never had to go to a hearing.
I make sure my cases are right before I submit them.” (Likely indicates
an advisor with limited Medi-Cal experience.)
Unacceptable answer: “I don’t give out my clients’ names
and numbers.”
If the advisor is unwilling to provide references,
go to the next advisor on your list. If the advisor provides references,
call them. You know
the advisor will only provide names of satisfied clients, but call them
anyway. Talking with the advisor’s clients will give you a feel
for his/her manner of conducting business.
Q. How do clients pay for your services?
A. Best answer: “I charge hourly or flat fees for consultations
and processing Medi-Cal applications from A to Z.”
Expensive answer: “I charge a fee based on a percentage of my client’s
assets.”
Unacceptable answer: “I handle Medi-Cal cases for free.”
Q. For non-attorney advisors: What professional designations do you
hold?
A. Best answers (any one or more): CFP-Certified Financial
Planner, ChFC-Chartered Financial Consultant, CLU-Chartered Life Underwriter,
CPA-Certified Public Accountant, EA-Enrolled Agent. May also encounter
qualified advisors with medical or other designations, such as RN – Registered
Nurse or Forensic Examiner – Consultant. Less attractive answers:
Little-known designations containing words ‘senior’ or ‘elderly.’
Q. For financial advisors: How do you handle wills and trusts and power
of attorneys?
A. Best answer: “I am very familiar with estate planning documents
and know how they work with Medi-Cal, however, I do not draft such documents.
I am not licensed to practice law. If you have a relationship with an
established estate planning attorney, I will coordinate our efforts with
your attorney. If you do not have an established relationship with an
estate planning attorney, we will provide names of two to three established
estate planning attorneys that we have worked with over the years.”
B. Highly unattractive answer: “I am not an attorney but I work
with an attorney in _____” (names a faraway city) “who reviews
all my work. I can help you draft your estate planning documents for
much lower fees than those charged by local attorneys.”
You have worked all of your life to accumulate your resources. However
large or small that amount is, you earned it and you want to direct its
use. Trying to save a few dollars on estate planning fees is clearly
penny-wise and pound-foolish. When you need estate planning help, get
experienced help from an experienced estate planning attorney.
Q. For elder law attorneys: Do you handle our financial matters in connection
with our application for Medi-Cal?
A. Best answer: “I understand how financial assets and income work
with Medi-Cal but I am not a financial advisor. If you have a financial
advisor who is willing to follow our directions explicitly, then we will
coordinate our work with your advisor. If you don’t have an established
relationship with a financial advisor, we will provide names of two or
three advisors that we have worked with over the years.”
B. Unattractive answer: “Yes, we handle everything for you.”
You have worked all of your life to accumulate your resources. However
large or small that amount is, you earned it and you want to direct its
use. Having elder law/estate planning attorneys direct your investing
makes no more sense than having financial advisors draft your legal documents.
You want a team approach where each professional keeps your needs uppermost.
You do not want individual egos to get in the way of your best interests.
Q. For all advisors: What percentage of your business comes from elder
finance or elder law work?
A. Best answer: Twenty-five percent or more.
B. Unattractive answer: Ten percent or less.
Competent advisors usually charge a flat fee for an initial consultation,
with fees typically ranging from $250 to $500. Given the high costs of
nursing home care, paying for a second opinion may be a good investment.
When you go for an initial consultation, bring everything:
bank statements, investment account statements, wills, trusts, powers
of attorney, insurance
polices and statements, burial arrangements, real estate trust deeds,
notices from hospitals and nursing homes, papers for any earlier applications.
If you or your relative is not organized, overcome your embarrassment
and bring along the boxes and files full of miscellaneous stuff. Good
advisors want to hear from you about Mom’s situation but they need
to see current documents that verify her financial and legal condition.
If you pay for professional guidance, follow your
advisor’s instructions
explicitly. As explained previously, Medi-Cal and other affiliated aid
programs follow regulations that often do not make sense to consumers.
You hire an advisor because that person knows bureaucratese, which to
inexperienced consumers is a foreign language. Do you and your loved
ones a huge favor and don’t second-guess your advisor. If you are
skeptical about your advisor’s directions, say so. If you really
question your advisor’s directions, seek a second opinion.
|
