Consider state benefits for long-term care before moving

The 2020 U.S. Census report demonstrated some definite trends regarding Americans on the move. In an online article by Laura Mueller in moving.com, “Where Are People Moving To? Top Trends for 2022”, the author noted “an overwhelming push toward states in the South and West.”

The top 25 cities “seeing the most new residents” include a large representation from Florida. Percentage-wise by states, Utah — maybe surprisingly — showed the highest percentage increase in population at 18.37%. The largest population decrease occurred in West Virginia, which lost 3.2% of its population between 2010 and 2020. The states where populations are declining according to the article are: Illinois, Mississippi and West Virginia.

All of these issues could be taken into account when considering moving out of state — whether the area is growing, whether communities that provide good care are located nearby, and what benefits might be available and their accessibility.

Florida, of course, has long been known for retirees. The author notes that good weather and a lack of state income tax might have something to do with it. Pennsylvania, another state with a large number of seniors, does exempt retirement income including income from IRA’s and 401(k)’s from Pennsylvania’s income tax although Pennsylvania has an inheritance tax. Florida also gives a generous homestead exemption for residents that can encourage out-of-staters with dual residences (for instance, Pennsylvania in summer and Florida in winter) to consider Florida their state of residence although they commute between both states. There can come a time when such commuters decide to settle entirely in one or the other.

Among all the issues up for consideration in making a move, one significant one is: What are the options when long-term care is needed. Reputation in longterm care circles has been that Medicaid in skilled nursing facilities is significantly easier to obtain in Florida than many states but care is sometimes criticized.

I have noted in prior columns over the years there are a number of Pennsylvania residents who move to Florida for retirement but return to Pennsylvania to be near family when they need care. Whether there is adequate appropriate care can sometimes also depend on local considerations. In rural areas in some states it may be difficult to locate nursing homes or senior communities able to meet demand.