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My dad is in terminal stage throat cancer, spread to his lungs. He's been at hospital for 6 months now tranfers to "SKN" facility but oncology told me he has less than 6 months. Now they told me he needs hospice but if we want their nurse are qualified for take care of him they move him to a private room. 
Now they want me to apply for Medicaid.. but if I used any money of my dads account I have to return it... I'm really confused... dealing with them and I am the only person with my dad. I'm starting to feel lost, hopeless

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What if Karla is a dependent of her Dad's?
Would that make a difference in how his pension and SS is allocated?

She could be disabled herself. May need to apply for disability based upon her parent's income?
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Try not to worry, Karla - you won't be expected to provide information you couldn't possibly have! But you may be asked to try to find it, perhaps your aunt might have some idea of where your father kept bank statements and so on?

And I completely agree - ask for help with the applications. You have enough to cope with with your father's illness, you're entitled to expect some support.
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Karla,
I am so sorry for all of the stress you are having-you are wonderful to be helping your father at this time in his life. I absolutely agree that the facility should have people that apply for Medicaid. This is routine for any institution that relies on insurance.
If your dad has Medicare there is a Hospice benefit:
medicare.gov/what-medicare-covers/part-a/how-hospice-works

But again, the facility should be doing this with and for you and your dad. That is how they get paid.
Best of luck
Margaret
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He is living with me for 7 months and 6 of them in the hospital. He has always lived alone or with his sister.
I could not answer what my father did 5 years ago. He has tracheostomy. They discovered he had cancer 6 months ago. He has Medicare but he doesn't have secondary.
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Karla, 

I'm so sorry about your dad. I know this is a very difficult and challenging time for you and your family. 

There are social workers that work in the facility. Don't attempt to get Medicaid on your own. It's too confusing. The social workers will help you with everything and let you know what you'll need to do.
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Please also understand that if money from Dad's pensions, etc. have been going to pay household bills that if he applies and gets Medicaid, ALL his money will be directed to the facility except for a small personal needs allowance ($35-115 depending on the state in which you live). That sometimes comes as a surprise to folks that live with and depend on a parent's income to maintain the household.
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Karla, I'm sorry for you and your family that your father has this terminal cancer, but compliment you on trying to decide what's best for him and how the advice you're getting can help.

I believe he's now in a "Skilled Nursing Facility"? And it has a hospice room? That is one option for getting hospice care, and given that he's been in a hospital for so long, that's probably the best solution as opposed to hospice at home. He would stay in the same facility but just be moved to a different room, or wing (corridor) in the building.

You do have the right to select another hospice company, but if you're comfortable with care at the SNF, it would be easier on your father to stay there. Changing facilities while in a terminal state can be challenging, and you want his journey at this time to be as peaceful as it can be.

If the facility wants to apply for Medicaid, allow them to help. They've done this before and can handle it much more easily.

Does your father have Medicare now, and does he have any supplemental or gap insurance, such as with Blue Cross? How have his SNF charges been paid? What about his hospital charges?

I would ask for a sit-down meeting with the billing specialist at the facility where he is now and ask for a good explanation of what the options for payment are. Medicaid and Medicare can be confusing, so please feel free to ask for more explanation if you don't understand the advice you get.

The staff who handle billing would be familiar with his situation and can explain what's possible and helpful, especially since they will have known how his care has been paid for thus far.

I'm sorry for this sad diagnosis but hope that you're able to get the information you need. And please feel free to ask again if you need more clarification.
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Just to add on to CM's excellent answer....if you've used any of the money is dad's account for something OTHER than dad's care or maintenance. Buying a new mattress for dad's use is fine; buying YOURSELF a mattress with dad's money is not.
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I'm very sorry to hear that your father is so ill.

The best thing to do is look up Medicaid's phone number for your area, which you should be able to find online.

Is English not your first language? I think Medicaid's regulations can be difficult to understand for anyone. So if you are having problems, tell them so and ask for their help.

In brief: Medicaid will look back through your father's spending over the last five years to see where his money has gone. If it has been given away or spent on other people, then Medicaid will add up how much has gone and will not pay that much of his bills.

But that doesn't mean they won't help and advise you. Get in touch with them, they are the experts.

Best of luck, please let us know how you're getting on.
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