This glossary covers terms related to elder care, retirement and estate planning. It also includes related financial, insurance and legal terms.
When one first starts investigating the world of options for seniors housing it can be confusing - bewildering is more like it. To make matters worse, some definitions are changing as you read this. Here are a number of definitions that may help.
We want to provide you with the best possible information. However, we are human and as a result, you may find a term missing. If that happens please let us know. Contact Us.
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Glossary
Glossary of Aging Terms.
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M
Meals on Wheels – Local agencies provide low cost, hot, nourishing meals to the elderly and disabled, allowing frail, homebound people to remain in their own homes.
Medicaid
Medicaid is a health benefit program administered by States for people with low incomes who meet other eligibility requirements. The health insurance program is financed by the federal and state governments. Medicaid may also pay for nursing home care if the individual’s income and assets are within certain limits.
Medicare
The national health insurance program for eligible people 65 and older and some disabled individuals. Part A covers hospital costs. Part B covers doctor bills and other medical costs.
Medigap
Medigap is designed specifically to supplement and complement Medicare’s benefits by filling in some of the gaps of Medicare coverage. Medigap insurance policies are non-group policies that may pay for Medicare deductibles, prescription drugs, or other services not covered by Medicare.
Medicare Supplement Insurance – A private insurance policy that covers many of the gaps in Medicare coverage (also known as Medigap Insurance or Medicare Supplemental Insurance). Except in Minnesota, Massachusetts and Wisconsin, there are 10 standardized plans labeled Plan A through Plan J. (Not all insurance companies offer all 10 plans.) Medicare Supplement Insurance policies work only if you are enrolled in the Original Medicare Plan. But, they won't pay any benefits if you are enrolled in a Medicare HMO or another type of Medicare Plus plan. Medicare Supplement policies can minimize Medicare copayments and deductibles for covered services, but generally do not offer expanded coverage such as long-term care services or prescription drugs.
Minimum Distribution – The minimum annual required distribution amount for an IRA holder reaching age 70 1/2; also called Required Minimum Distribution (RMD).TOP
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Network – A group of doctors, hospitals, pharmacies, and other health care professionals hired by a managed healthcare plan to take care of its members.
Noncancellable Policies – Insurance policies that cannot be cancelled by the insurance company, except for non-payment of the required insurance premiums. And, the rates can never be changed by the insurance company.
Nonforfeiture Benefits – After a long-term care insurance policy has been in force for a sufficient period of time, your will be entitled to a nonforfeiture benefit if you let the policy lapse. Instead of cancelling the policy, the nonforfeiture benefit allows you to keep it in force as a paid-up policy. Nonforfeiture benefits vary from policy-to-policy; they usually include (1) keeping the same benefit amounts, but making the benefit period shorter, or (2) keeping the same benefit period, but with reduced benefit amounts.
Nursing Home – A state-licensed residential facility that provides a room, meals, help with activities of daily living, recreation, and general nursing care to people who are chronically ill or unable to take care of their daily living needs. It may also be called a Long Term Care Facility. If it has been certified as such by Medicare, it is also referred to as a Skilled Nursing Facility.
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O
Occupational Therapist – A rehabilitation professional who teaches people to compensate for functional limitations as a result of an injury, illness or disability by learning skills and techniques needed to perform activities of daily living and optimize independence.
Out-of-Pocket Maximum – The maximum amount of money you will be required to pay per year for your health insurance plan's deductibles and coinsurance. This maximum may apply to each family member, or to an entire family. The maximum amount is in addition to your premiums.
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Paid-Up Policy – After your insurance policy has been in force for a period of time defined in the policy, you may be entitled to nonforfeiture benefits. If you have one of those policies and you prematurely stop paying the required premiums, your policy becomes paid-up. You don't pay any more premiums, but the benefits you receive under the policy will be determined based on the amount of premiums you have already paid, not on the level of benefits you originally purchased.
Paratransit Services – Specialized transportation, such as a wheelchair accessible van, for seniors and other people with disabilities. These services may offer transportation to senior centers, medical care, shopping malls, or specific appointments.
Partnership Policy – A type of long-term care insurance policy that allows you to protect (keep) some of your assets if you apply for Medicaid after using your policy's benefits. Only a few states have these policies.
Personal Emergency Response System – In case of a fall or other medical emergency, this electronic device enables the user to contact help 24-hours-a-day simply by pressing a button. A number of private companies offer these systems.
Physical Therapist – A rehabilitation professional who utilizes various therapies to help people maximize mobility, and restore strength and body movement after an illness or injury such as a stroke, fall, back injury, etc.
Plan of Care – The written plan that describes the services and care you need for your health problem. Your plan of care must be prepared or approved by your doctor.
Point-of-Service Plan (POS) – A type of managed care plan that combines aspects of health maintenance organizations and preferred provider organizations. POS offers the option of going to a network healthcare provider and paying a flat fee, or to an out-of-network provider and paying a deductible and/or a coinsurance charge. POS Plans are not currently available to Medicare beneficiaries.
Pour-over – A provision in a person's will stating that certain assets are to be transferred (poured over) to a trust upon the death of that person.
Power of Attorney – A written legal document in which one person (the principal) appoints another person to manage the principal's financial affairs. Even though the intent is that the power of attorney will not take effect until the principle becomes unable to handle his or her own affairs, it actually takes effect on the date it is signed, unless otherwise specified. And, unless otherwise specified, the financial durable power of attorney applies only to assets owned directly by the principal, and not to any assets transferred into a trust by the principal.
Power of Attorney for Health Care – A written legal document in which one person (the principal) appoints another person to make health care decisions on behalf of the principal in the event the principal becomes incapacitated (the document defines incapacitation). This instrument can contain instructions about specific medical treatment that should be applied or withheld. While its purpose remains essentially the same from state-to-state, the name of this document can vary; for example, in Florida it is called a Designation of Health Care Surrogate.
Pre-existing Condition – An illness or disability for which you were treated or advised within a certain time period (typically 6-12 months) before applying for an insurance policy. Any pre-existing condition would not be covered during a designated time period (again typically 6-12 months) after the effective date of the policy.
Preferred Provider Organization (PPO) – Another type of managed care plan. Members have a choice of utilizing healthcare providers in the PPO network, or hospitals, doctors and other healthcare professionals outside the plan for an additional cost.
Primary Care Physician – A doctor trained to give you basic care. Your primary care doctor is the one you see first for most health problems. He or she makes sure you get the care you need to stay healthy. He or she also may talk with other more specialized doctors and healthcare providers and refer you to them. In many Medicare managed care plans, you must see your primary care doctor before you see other healthcare providers.
Primary Caregiver – The person, usually the spouse or adult child, who takes on the primary day-to-day responsibility of caring for the physical, psychological and social needs of another person.
Probate – The process by which an executor (if there is a will), or a court-appointed administrator (if there is no will), manages and distributes a decedent's property to heirs or beneficiaries.
Provider – A properly-licensed doctor, health care professional, hospital, or other health care facility, including a home health agency, that provides health care or related social services.
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Q
Qualified Long-Term Care Insurance Policy – A policy that conforms to federal law and, as a result, offers potential federal tax advantages for some people. Sometimes referred to as a Tax-Qualified Long-Term Care Insurance Policy.
Qualified Long-Term Care Services – Defined by federal law, these are necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, and rehabilitative services, and maintenance or personal care services, that are required by a chronically ill individual, and are provided pursuant to a plan of care prescribed by a licensed health care practitioner. Maintenance or personal care services means any care the primary purpose of which is to provide needed assistance with any of the disabilities as a result of which the individual is a chronically ill individual (including the protection from threats to health and safety due to severe cognitive impairment).
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R
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Reinstatement – If a long-term care insurance policy lapses as a result of the insured person's cognitive impairment, it can usually be reinstated in most states retroactive to the date of lapse as though no lapse occurred, with no application required for reinstatement. The request for reinstatement must be made to the insurance company within six months following the date of lapse; the insurance company's requirements for cognitive impairment must be met; and all past due premiums must be paid.
Rescind – When the insurance company voids (cancels) a policy retroactive to its effective date. Legally, it is though the policy was never issued.
Residential Care Facility – A generic term for a group home, specialized apartment complex or other institution that provides care services where individuals live. The term is used to refer to a range of residential care options including assisted living facilities, board and care homes and skilled nursing facilities.
Respite Care
The provision of short-term relief (respite) to families caring for their frail elders offers tremendous potential for maintaining dependent persons in the least restrictive environment. Respite services encompass traditional home?based care, as well as adult day health, skilled nursing, home health aide and short term institutional care. Respite can vary in time from part of a day to several weeks.
Revocable Trust – A trust in which a Grantor reserves the right to revoke or change. To protect the final wishes of the Grantor, a trust can become irrevocable upon the death of the Grantor.
Rider – An addition to an insurance policy that changes the provisions of the policy.
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S
Senior Centers
A vital link in the service delivery network which older persons may avail themselves of, senior centers are functioning as meal sites, screening clinics, recreational centers, social service agency branch offices, mental health counseling clinics, older worker employment agencies, volunteer coordinating centers, and community meeting halls. The significance of senior centers cannot be underestimated for they provide a sense of belonging, offer the opportunity to meet old acquaintances and make new friends, and encourage individuals to pursue activities of personal interest and involvement in the community.
State Agencies on Aging
The Older Americans Act mandates that each state have a state agency on aging which is part of state government. The State Agency on Aging is the designated focal point within the state government responsible for administering a complex service system designed to complement and support other human service systems in meeting the needs of the elderly.
State Health Insurance Information Counseling and Assistance Programs
Known as SHIP, this program is comprised of 53 state programs and nearly 15,000 trained volunteers who offer unbiased, one on one counseling to assist Medicare beneficiaries understand their health insurance benefits and options.
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T
Tax Basis – The value of an asset for income tax purposes. This varies by the asset and the means by which it was acquired.
Telephone Reassurance – Calls made by agencies or volunteers to an elderly person to check up on them and offer reassurance, contact and socialization. The calls are typically made at a predetermined time each day.
Term Life Insurance – Covers a person for a period of one or more years. It pays a death benefit only if you die during that term. It generally does not build a cash value.
Testate – Dying with a legally valid will.
Testator – The person who makes a will.
Third Party Notice – A provision that lets you name someone who the insurance company would notify if your coverage is about to end because the premium hasn't been paid. This can be a relative, friend, or professional such as a lawyer or accountant, for example.
Toileting – The fifth activity of daily living - Getting to and from the toilet, getting on and off the toilet and performing associated personal hygiene.
Transferring – The sixth activity of daily living - Moving into and out of a bed, chair or wheelchair.
Transportation
Programs that provide door-to-door transportation for people who may be elderly or disabled, who do not have private transportation and who are unable to utilize public transportation to meet their needs.
Trust – A legal arrangement in which an individual (the trustor) gives fiduciary control of property to a person or institution (the trustee) for the benefit of one or more beneficiaries.
Trustee – An individual or organization designated in a trust document to manage the assets held in the trust for the benefit of the trust's beneficiary or beneficiaries.
Trustor – The person who creates a trust; also called a grantor.
TTY – A text telephone system that allows a hearing-impaired user to type messages to another person and read responses on a small screen. Similar to today's text messaging, a "read only" conversation can exist between two people who each use TTY equipment. Otherwise, a non-hearing-impaired caller can use a relay service where a special operator acts as a go-between to translate the speaker's words into text and text print into voice communication.
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U
Underwriting – The process of examining, accepting, or rejecting insurance applications, and classifying those people who are accepted, in order to charge the proper premium for each person.
Universal Life Insurance – A flexible type of policy that lets you periodically adjust your premium payments and the amount of your coverage.
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W
Waiver of Premium – If a policy contains this provision, premiums don't have to be paid while an insured person is receiving benefits if the specified conditions are met.
Will – A written document through which a person disposes of property after death.
Whole Life Insurance – Policies that build a cash value and cover a person for as long as he or she lives if premiums continue to be paid
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X Y Z
Some terms provided by
Department of Health and Human Services
Administration on Aging
