Death Tax for the Rest of Us

Art and Edna (not their real names) are long-retired and both are having memory and other health troubles. Their son and daughter-in-law have taken them in to see to their care. Even in a down market, Art and Edna’s small home in Florida sold quickly. Too quickly.

Within months, their son and daughter-in-law realized that the seniors would need more care than the working couple could provide at home, so they began looking at nursing homes – a costly option. Because the seniors have few resources, their relatives applied for Medicaid assistance. But because they now have cash from the home sale, they are not poor enough, and thus ineligible for Medicaid.

Had they transferred their home to their son and daughter-in-law instead of selling prior to their application, Medicaid would have picked up the nursing home costs. Now, after long, productive lives, Art and Edna will turn over their remaining money – and probably a lot of their childrens’ – to America’s for-profit health industry to pay for nursing home care until they are poor enough to qualify for Medicaid. Unless they die first.

Under America’s for-profit health care system, this is the real Death Tax. And a majority of Americans will pay it.

Views expressed on this page are those of the authors and not necessarily those of Campaign for America's Future or Institute for America's Future