Older people need to think seriously about long-term care because in a few years they will need a form of care that can leave them miserable and impoverished. Most of these elderly people have problems paying for their long-term care, as the costs of both institutional and residential care are the most expensive forms of care.
Financing long-term care services is the number one issue facing many American seniors today. This spurs the states and federal government to create programs that address this problem.
Below you will find the options for financing your long-term care yourself:
Private LTC Policies – Purchasing private long term care insurance is the first thing you would consider. LTC policies are available from private insurance companies in several states. There is no set price for each policy, as premiums are based on age, health conditions, condition and height, and other characteristics of the coverage. The premiums increase with age; thus, younger policyholders receive cheaper premiums than their older counterparts.
Private policies normally cover several facilities: home, nursing home, assisted living facility and adult day care. Also, most insurance companies offer features such as inflation protection, which increases the daily benefit, either simple or compounded; elimination period, the number of days you pay out of pocket before the business takes off; and benefit period, the period (normally referred to in number of years) that the company will pay the insurance coverage.
Partnership Policies — Many Americans believe that Medicaid and Medicare will save them from paying everything for their long-term care needs. This is also why many residents do not plan for retirement. Contrary to what they expected, Medicaid will not pay any amount unless they have exhausted their assets and distinguished themselves from the poor. This means you literally have to be poor before you qualify for any Medicaid coverage.
Congress is coming up with a program that promises to close this loophole in Medicaid; thus the Long Term Care Partnership Program was created. Four states initiated the program, but more than 30 states later joined the program to support the federal government’s efforts to support Medicaid’s budget for LTC and help residents plan for their long-term care needs. The most notable feature of the Partnership Policy is the Asset Protection of Disregard. This feature allows consumers to keep more assets than Medicaid’s limit, but still qualify for coverage. Medicaid allows consumers to keep their assets equal to the benefit amount paid under the policy.
CLASS Act — The Community Living and Assistance Services and Support Act is the latest program that President Barack Obama signed into law in 2010. the effective date is January 1, 2011. taxpayers. Members give $50 per day that will go into a trust fund, but the amount of the bounties has yet to be determined by the Department of Human Affairs. The amount that the members will pay is not that expensive, but it could at least provide them with protection when long-term care is needed. Those who have been rejected by private insurers due to a pre-existing health condition may still qualify for the CLASS Act, without going through an underwriting process.