Long Term Care Insurance

Long Term Care Insurance Basics

2008-04-02T23:38:00.000-07:00

By Keith Tufte

Healthcare costs and long-term care costs are one of the biggest concerns today for many people. Long-term (LT) care insurance can help protect you against the significant financial risk posed by the potential need for long-term care services either in a nursing home, assisted-living facility, or in your own home. These policies can help you preserve your assets for your spouse and/or heirs. They are purchased for asset protection, to minimize the dependence on other family members, and to have some control of where and how you will receive long-term care services. LT care goes beyond medical and nursing care to include all the assistance you will need if you have a chronic illness or disability that leaves you unable to care for yourself. The US Department of Health indicates that people age 65 face at least a 40% lifetime risk of entering a nursing home sometime during their life, and 10% will stay there five years or longer. The odds of entering a nursing home increase with age, and currently 22% of people age 85 or older are in a nursing home. While older people are more likely to need LT care, your need for it can come at any age. The average cost of a private nursing home room is about $70,000-$75,000 per year. These costs vary significantly based on what part of the country you live in. The typical stay in a nursing home is between 90 days and four years (average is 2-2.5 years). Benefits are typically triggered when you can't perform two "activities of daily living" such as bathing, feeding yourself, dressing, getting from bed to chair, and going to the bathroom (and the condition is expected to last at least 90 days). Benefits can also be triggered if you develop severe cognitive impairment (like Alzheimer's).

Aren't I already covered for this? No.

Generally Medicare and most regular health insurance plans will not cover long-term care costs. Medicare supplemental insurance (Medigap) also typically does not cover LT care costs.

Who should buy LT care insurance? Who shouldn't bother?

Wealthy people (with assets over $3M) that can afford care on their own typically don't need to buy LT care insurance (they can basically "self-insure"). For a very wealthy family if they are forced to live in a nursing home for 3 years at $75,000 per year the total cost of $225,000 will not wipe them out. Some wealth people buy LT care insurance anyway for the peace of mind and for emotional reasons. "It allows loved ones to care about you rather than caring for you" says Jesse Slome, executive director of the American Association for LT Care Insurance. Those with little assets (below $300,000) also are not great candidates because they likely can't afford the coverage anyway, and they have a smaller amount of assets to protect. Medicaid may take over coverage after they have exhausted their assets (depending on the state). People in the middle in terms of wealth are good candidates for LT care insurance. People who have no relatives nearby that could help take care of them often consider LT care insurance. Single people who have relatives nearby and don't really care about leaving an estate may not need/want LT care insurance. If you have a family history of long-term incapacitating diseases like Alzheimer's, you should think about this type of insurance (and longer duration of insurance) because those types of diseases often cause people to need LT care for many years.

When should I buy it? At what age?

The typical range people buy this insurance is between ages 45 and 70. The premiums increase as you get older (and are thus more likely to end up in a nursing home). The premiums start to increase especially as you get over the age of 60 and are very expensive at age 70+. If you don't have a family history of chronic illnesses and you are in good health you can probably wait until you are around 55-60 years old to buy.

What are the variables that determine how much my LT care coverage will cost? What are important things to consider when shopping for a policy?

1. Duration of coverage (this can range from just a couple years coverage up to unlimited or lifetime). Given that the average nursing home stay is typically only a few years, lifetime coverage is likely too much for most people and is very expensive. Usually 2-6 years of coverage is enough.

2. Elimination period. This is similar to the deductible on other insurance policies. Your LT care policy doesn't start paying out for a certain number of days. This elimination period is typically 30-90 days.

3. What exactly is covered? Skilled care and non-skilled care covered? Does it cover help at home? Assisted living? Adult day care? Does the policy require a hospital stay before this (home care) benefit is available? Are pre-existing conditions excluded from coverage? Is Alzheimer's covered? Most policies exclude coverage for some mental and nervous disorders, alcoholism, drug abuse, and care after self-inflicted injury.

4. Amount of coverage per day? The higher your daily benefit, the higher your premiums. Typical amounts covered are $100-$200/day of costs. The average cost of a nursing home is around $200/day.

5. Inflation adjusted or not? This is important and makes a big difference over long time periods. It also greatly increases the cost (and value) of the policy. Is the inflation protection "compound" (increases by a set percentage each year) or "simple" (increases by a set dollar amount each year)? Compound inflation protection is better.

6. Is the policy guaranteed to be renewable? Can you continue getting coverage as long as you pay your premiums?

7. How and when (after 90 days?) are premiums waived once you get sick?

8. Do you want a "shared care" joint policy with your spouse? These cost slightly more than a single policy but allow either of you to use the full benefits. These policies are significantly cheaper than two individual policies bought separately.

9. How financially stable is the insurer? Check out the ratings at A.M. Best's website. Several long-term care insurers have gone out of business. Stick with highly rated companies (rated at least "A").

10. Your age is a big factor that determines how expensive the policy will be.

Other things to consider?

Make sure your policy clearly explains when you will be eligible for coverage and how your eligibility will be determined. Make certain you know exactly what is and is not covered. Are dementia and/or Alzheimers covered? These LT care policies are often very complex and have so many different options that it is tough to get an apples-to-apples comparison across different companies. Only buy as much LT care insurance as you need. Some insurance companies have been able to raise the premiums on existing policies over time, and there isn't much you can do about it. It is very difficult/expensive to change insurers or policies once you have had a policy for several years (because you are older and a worse insurance risk). Buyers essentially commit to an insurer and a policy for life. Claims are often a judgment call. Do you really qualify for benefits now? Will your insurance company pay up when you need it? The insurer decides whether or not they will pay for the care.

You may not be using your policy for 10-20 years. What will happen to your LT care insurance company by then? Will it still be financially strong? What will happen to the US healthcare system over the next 10-20 years? It is sure to change significantly. Will there be universal healthcare by then which will include LT care? How much will nursing homes cost in 10-20 years? How much will medical technology change over that time period? There are lots of uncertainties surrounding LT care insurance over such a long time period.

How much does it cost?

This insurance is expensive, especially for people over age 65. It is hare to give numbers for the insurance because the policies have so many variables. A healthy 59 year old person can buy a policy that pays $130/day for 5 years of coverage with a 5% inflation protection rider for around $1,150 a year. The same policy for a 65 year old might pay closer to $2,000 per year. Some more comprehensive policies with inflation protection can cost a 65 year old as much as $4,000 per year. Rates depend on your age, health, and marital status (cheaper if you are married).

Tax Issues?

Most LT care policies sold today are "qualified", which means for federal tax purposes benefit payments received are generally tax-free. If you are self-employed (sole proprietor, partner, or LLC owner) you can deduct all of the premiums for a qualified LT care policy (subject to age based maximum limits). This deduction is available whether or not you itemize.

Keith Tufte
President
Longview Wealth Management, LLC.
http://www.longviewwealth.com

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2008-04-02T23:27:00.000-07:00

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Can't Afford Long-term Care Insurance? It May Be More Affordable Than You Think

2007-12-17T13:48:00.000-08:00

For many people, the greatest deterrent from purchasing long-term care insurance is the notion that it is too expensive.

However, with insurers delivering simpler long-term care insurance policies, you may find long-term care insurance more affordable than you think. A long-term care insurance plan can be tailored to fit almost any budget. And, as the cost of long-term care services-including nursing home care, home health care and custodial services-rises, it doesn't take long before it exceeds the cost of long-term care insurance.

"With the national average annual cost of nursing home care over $65,000 and rising, the cost of just two or three years in a nursing home can wipe out the average American's retirement savings," said Mutual of Omaha senior vice president James Blackledge.

Alternatively, said Blackledge, the break-even point for long-term care insurance can be realized in a short amount of time.

Consider this example: A 60-year-old could purchase a basic policy with a five-year benefit period and a $100-per-day benefit for about $1,400 annually. If he or she were to need long-term care services in 10 years, the premium paid for the long-term care insurance ($14,000) would be paid back in benefits in less than six months ($100 per day x 140 days = $14,000).

It's common for companies to offer a variety of preferred rates and discounts for good health, married couples and members of certain associations. Some long-term care insurance policies offer tax advantages that allow you to deduct eligible premium amounts as medical expenses. In addition, the benefits paid by long-term care insurance policies are tax-free. Like life insurance, the earlier a person purchases long-term care insurance, the lower the rate.

Asset Protection

Unless skilled nursing care is also required, Medicare does not cover assistance with activities of daily living-mobility, dressing, housekeeping and meal preparation-often associated with most long-term care services. With Medicaid, a person must first use nearly all of his or her financial assets to become eligible.

"Long-term care insurance protects your assets so you don't have to watch your life savings whittle away. It provides coverage for all types of services whether at home, in an assisted-living facility or a nursing home," Blackledge said. "With longer life expectancies, the likelihood of needing some sort of long-term care services increases."

Because you never know when you're going to need long-term care, experts advise selecting a company that is experienced in long-term care insurance and financially sound to ensure it will be around to provide you with coverage far into the future.

By: Wendy Mitchell

For more information on long-term care insurance, visit mutualofomaha.com. Some long-term care insurance policies offer tax advantages that allow you to deduct eligible premium amounts as medical expenses.

Long Term Care Insurance - Is it Right For You?

2007-12-11T08:54:00.000-08:00

You can't watch television for five minutes without realizing that the Baby Boom generation-the 78 million Americans born between 1946 and 1964-are entering their senior years. The music of the Sixties is now being used not to sell cars and jeans, but an array of senior products-from retirement investments to dietary supplements. For some boomers, "When I'm Sixty-Four" not a love song; it's an entry in Microsoft Outlook. The aging population has focused new attention on long term care. Who will need it? What does it cost? And how will people pay for it?

According to the American Association of Homes and Services for the Aging (AAHSA), a nonprofit organization that studies elder care, nearly 7 out of 10 adults who reach the age of 65 will require long term care at some point in their lives. Some of this care is given in the home, but the majority is provided in assisted living facilities and nursing homes. In October 2007, the MetLife Mature Market Institute reported that the average cost of a private room in a nursing home has reached $77,745 a year, and the average nursing home stay is 876 days, or 2.4 years. That means the cost of an average nursing home stay is $186,588. However, 25% of nursing home residents remain in a nursing home three years or longer. Fully 12% stay more than five years. A five-year stay would cost $388,000 at today's prices. In 2011, when the first baby boomers turn 65, costs will undoubtedly be higher than they are right now.

People pay for long term care in three ways: 1) out of their savings, 2) with insurance, or 3) through Medicaid, the government health plan for low-income individuals. Not many people have $75,000 to $400,000 in savings, so most people pay with insurance or Medicaid.

To qualify for Medicaid, an individual must have little income and few assets. The family home is exempt from the Medicaid calculation, as long as the person needing care or their spouse lives in the home. Even then, the home equity can be counted by Medicaid if it exceeds $750,000. To control exploding Medicaid costs, Congress extended the "look back" period for counting assets transferred to friends and family from three years to five years prior to applying for Medicaid.

For people with substantial assets in retirement accounts, stocks, bonds, or savings accounts, the best way of paying for long term care is through long term care insurance. Of course, the person must buy the long term care insurance before he or she needs it. The sooner individual signs up, the lower his or her premiums will be. For example, a 50-year old who gets a $150-a-day for four years of coverage can expect to pay annual premiums of about $1000. If the person waits until he or she is 65, the cost will be about $2200 a year. At 80, the cost is around $7500 a year.

Not everyone is convinced they will need a private room in a nursing home; many think they will be fine in an assisted care facility, which costs less. According to the MetLife study, a year in an assisted living facility costs $35,628-about half the cost of nursing home's private room. As a result, the daily cost of a room in an assisted care facility is $97 a day, rather than the $213 for a nursing home room. By cutting the daily rate in half, the insured is able to reduce the insurance premiums.

Other people reduce premiums by cutting the amount of time the policy covers. If the average stay is just 2.4 years, they reason, why get coverage for more than that? Only one in four people stays in a nursing home three years or more. Some people are willing to play the odds to reduce their premiums. The risk, of course, is that the insured ends up spending not just three or four years in the facility, but four, five, six years, or more. If a person has considerable assets, the lack of comprehensive insurance will put those assets at risk.

A smarter way to cut premiums is by increasing the elimination period-the waiting period before the benefits start. By extending the waiting period for a $150-a-day room by an extra 90 days, for example, the insured will have to pay an additional $13,500 in out-of-pocket expenses. This will decrease the premium amount substantially, giving the insured time to save up the out-of-pocket amount. It will also protect against the high cost of an ongoing stay. It is better to pay an upfront cost that is known than to accept an open-ended arrangement that could cost far more.

Bradley Steffens is the author of twenty-one books, coauthor of seven, and editor of the 2004 anthology, The Free Speech Movement. His Censorship was included in the 1997 edition of Best Books for Young Adult Readers and his Giants won the 2005 San Diego Book Award for Best Young Adult & Children's Nonfiction. His latest book is Ibn al-Haytham: First Scientist, the world's first biography of the eleventh-century Arab scholar known in the West as Alhazen.

HHS Launches New Website Promoting Long Term Care Planning

2007-01-21T14:26:00.000-08:00

Essential Planning Tool to Help Americans Own Their Own Future

HHS’ Assistant Secretary for Aging Josefina G. Carbonell announced a new Web site that will make it easier for consumers to get the information they need to plan for long-term care. The National Clearinghouse for Long-Term Care Information Web site provides comprehensive information about long-term care planning, services and financing options, along with tools to help people begin the planning process.

The clearinghouse Web site is designed to increase public awareness about the risks and costs of long-term care and the potential need for services, and to provide objective information to help people plan for the future. The clearinghouse Web site was designed by HHS’ Administration on Aging (AoA), Centers for Medicare & Medicaid Services (CMS) and the Assistant Secretary for Planning and Evaluation (ASPE).

"The National Clearinghouse for Long-Term Care Information Web site is an important step toward giving consumers the tools they need to take personal responsibility for planning for their future long-term care needs," HHS Secretary Mike Leavitt said.

The Deficit Reduction Act of 2005 mandates that the Clearinghouse contain the following: objective information to help consumers decide whether to purchase long-term care insurance or to pursue other private market alternatives that pay for long-term care; information about states with long-term care partnerships under Medicaid; and information about the availability and limitations of coverage for long-term care under Medicaid. The Web site features a number of resources to help individuals start the planning process, including interactive tools such as a savings calculator, contact information for a range of programs and services, and real-life examples of how individuals have planned successfully.

The National Clearinghouse for Long-Term Care Information Web site helps support the principles of the "Choices for Independence Initiative," included in the recently reauthorized Older Americans Act (OAA), signed into law by President Bush in October.

"The new OAA helps empower individuals and supports better planning, improved home and community-based long-term care options, and more flexible and consumer-friendly systems that allow Americans to remain vibrant and independent," Assistant Secretary Carbonell said.
The new Web site also supports the "Own Your Future" education campaign, a joint federal-state initiative designed to increase consumer awareness about planning for long-term care. HHS recently announced new federal-state partnerships with several states designed to help Americans take an active role in planning ahead for their future long-term care needs.

"The National Clearinghouse for Long-Term Care Information Web site is an essential component of the ‘Own Your Future’ campaign," CMS Acting Administrator Leslie V. Norwalk said. "Users can easily find information about services, resources and finances to help them plan for future long-term care needs."

For more information about the "Own Your Future" campaign and the National Clearinghouse for Long-Term Care Information, please visit www.longtermcare.gov

Technorati Tags: Long+Term+Care+Planning HHS Insurance Healthcare Aging

The High Cost Of Long Term Care

2007-01-13T11:26:00.000-08:00

Have you ever really thought about just how expensive long term care services really are?

If you haven't then you may be surprised that a recent study by New York Life Insurance Company shows that the average daily cost of long term care is $204, or $74,445 Per Year For Private Room!!!

The study, which you can see here, also states:

*Costs for both private and semi-private care were 6% higher than in 2005

*Top Five U.S. Regions with Greatest Cost for Private Nursing Home Care in 2006

Alaska - $388 per day

Connecticut – $366 per day

Connecticut -$323 per day

New York – $311 per day

New York – $311 per day

The 2006 study goes on to say "Many people assume Medicare will pay for these nursing home residences, but the truth is that the portion Medicare covers is quite narrow and costs are rapidly rising in most U.S. regions"

These issues will continue to compound themselves as advances in medical technology, medications, and improved medical procedures help people to live longer lives. It is vital the people educate themselves about the cost of long term care.

Long term care will most likely not get any cheaper. It is more reasonable to assume that these services will rise in costs due to the nursing shortages that we are experiencing now. Tnursingrisng shortages are only expected to get worse because baby boomers make up a large portion of the current nursing population.

It is a very good idea to consider insurance to help you cover these costs, because as things are currently, Medicare only covers some of the costs of long term care services and only pays for a portion of those covered services.

Technorati Tags: long+term+care+insurance nursing+homes services healthcare assisted+living

Do you know why LTC insurance is important?

2007-01-04T15:27:00.000-08:00

I found a great article that summarizes what I have been trying to say on this blog for the past few months. It indicates that many people simply do not grasp the importance and expense of long term care insurance.

The article goes on to say that staying in a nursing home or long term care facility costs more than staying at an expensive hotel!!!

The article also reflects five of the most common misconceptions that people have about how their long term care needs will be paid for.

You can read the whole article here or by visiting the main site at http://www.medicalnewstoday.com/

Americans are uninformed about long term care

2006-12-29T02:51:00.000-08:00

According to a recent release by the AARP many Americans over the age of 45 do not understand just how expensive long term care is and how long term care insurance can help them.

One notable quote from the report tells us that most people "overestimate the amount that government programs such as Medicare will pay."

I have said before that Medicare does NOT cover many of the services that long term care patients require. In the instances that it does pay, it often does not pay in full for the required treatments.

Here are some more interesting statistics from the AARP study:

"less than one in ten (8%) could the cost of nursing home care"

"More than half (52%) incorrectly believe Medicare covers assisted living"

"Six in 10 (59%) believe Medicare covers nursing home stays beyond three-months for age-related or other chronic conditions, which is not true."

You can find the press release and links to the actual study from the AARP HERE

These troubling statistics represent the exact reason that I started this blog. So many people have misconceptions or confusion about how they will be taken care of when they get older or find themselves needing some type of long term care due to disability.

Most of us will spend some amount of time in a nursing home or long term care facility before we die. The length of time that we will spend there is unknown, but with advances in medications and healthcare technology, many people are able to "live" much longer.

Thus, when we are afflicted with a serious medical condition that would have resulted in death a decade ago, we are now more likely to stay alive, but will require some form of assistance. Just looking back at the past 10 years there have been great medical discoveries and innovations, imagine how much longer we will be able to live 10 years from now.

My suggestion is that you do not allow yourself to be as misinformed as the people in the survey. Educate yourself about the cost of long term care and what government programs like Medicare and Medicaid actually cover.

Technorati Tags: long+term+care+insurance, survey, AARP, long+term+care, healthcare, Medicare,

The Shape Of Long Term Care Facilities

2006-12-17T14:48:00.000-08:00

Have you ever stopped to think about why a long term care facility is designed the way that it is?

In most cases a nursing home is designed in the shape of an "+". In the center of the + is the nurses station. Down the lengths of the + are the hallways and patient rooms. This is done for a few reasons.

One reason is that decades ago healthcare providers learned that having proper ventilation is crucial to preventing nosocomial infections. Nosocomial infections are ones that are passed from patient to patient. Proper ventilation of hospitals and nursing homes has helped to reduce the likelihood of nosocomial infections.

The second reason that long term care facilities are generally designed in this manner is one of convenience. From the center of the building that is shaped like a + sign, the nurses and other caregivers can quickly reach a patient's room and keep an eye on the patients that may be wondering the halls.

Unfortunately designers of these facilities must consider that there are a handful of nurses to provide care to a high number of patients. Yes, there are a few legal requirements that indicate the bare minimum that is required, but is that enough?

When you or one of your family members are in one of these facilities do you want the minimum number of nurses that the law requires or do you want a facility that actually meets the patients needs?

Investing in long term care insurance can help you have more choices as to where you receive care in your latter years. If you rely only on Medicare and Medicaid to cover your long term care needs, you will find yourself in facilities that can only afford the minimum levels of care.

The higher the ratio of healthcare providers to patients greatly increases patient health and satisfaction rates. These satisfaction rates are not only of the patients but of the healthcare workers as well.

Tehcnorati Tags: Long+Term+Care+Insurance LTC nursing+homes eldercare aging architecture design nurses nursing

Long Term Care Insurance- A Worthwhile Investment?

2006-11-05T19:51:00.000-08:00

Long-term care insurance is generally not in the forefront of people’s thoughts when they think about protecting themselves and their families financially.

Many people do not take the time to learn about their insurance policies and Medicare coverage. I believe that the reason people do not do this is because it is extremely complex to understand and make sense of. Because of this complexity many people just assume that Medicare will cover whatever needs they may have once they retire and reach age 65. The general public leaves it up to their doctors or healthcare providers to “figure out all the insurance stuff”. This is not in your best interest though.

Consider this, most people will turn their automobile off when pumping gasoline because there is a very small statistical chance of the vehicle catching on fire. Now ask yourself how many of these people have long term care insurance. The answer is that very few of them do, even though the statistical odds of being placed in a long term care facility are almost 90% for most people in the USA.

Many of you reading this will spend at least one week in a nursing home or long term care facility towards the end of your life, yet you do not have insurance to pay for this. Think of friends and relatives who have died, did they spend some time in a long-term care facility before they died? Now ask yourself if Medicare will pay for this? Do you know the answer? What if a retiree who relies completely on Medicare for health coverage and has no income is placed in a nursing home? Are they eligible for both Medicare and Medicaid?

The trap that many fall into is that they get stuck in what is referred to as a “spend down” situation. This means that the person in the facility must spend all of their assets before they are eligible for Medicaid assistance. If this person planned on leaving their home to their children or grandchildren they cannot because it must be sold to help pay the costs of the nursing home. Any savings accounts must be spent too. Basically any assets that the patient has must be used up before Medicaid will step in to assist in payment with Medicare.

Now if you have long term care insurance you can help protect those assets. Long-term care insurance, while expensive, is still cheaper than having to sell everything you own if you find yourself in a long-term care facility. Long-term care insurance provides you with control over your assets and allows you to not have to rely on Medicaid to supplement your Medicare benefits.

With the advances in medical technology people are able to “live”, or at least stay alive for longer periods of time than in the past. As the years go by this will only increase. If you look at medical problems that would have resulted in death five or ten years ago you will see that people suffering those same conditions are able to stay alive for years in a nursing home today. Nursing home care is extremely expensive, especially the ones that provide quality care. You can find long-term care facilities charging as much as $3,000 (or more) a month for providing care. That figure assumes that you have no major health problems and does not account for medications.

We all like to think that we have years before we have to worry about purchasing long term care insurance but the reality is that we never know when we may find ourselves in a long term care facility. Also, if you look into long term care insurance at a younger age it is less expensive than if you wait until age 65 or 70. Plan now so that your family does not have to “spend down” your assets that you want to leave to them. Most insurance companies offer long-term care insurance. Find a plan that fits your needs the best and get insured today, because statistics tell us that we will most likely spend some time in a long term care facility towards the end of our life.

Technorati Tags: long+term+care+insurance LTC+insurance seniors healthcare long+term+care

How to Understand Health Standards for Long Term Care Insurance Enrollment

2006-10-15T23:04:00.000-07:00

Copyright (c) 2006 Clay Cotton

Long term care insurance conforms to the basic insurance mechanism, in that the individual risk of future peril is shared by a pool of people who currently are free from that peril.

The insurance pool is represented by the insurance company which sets eligibility standards for enrollment to ensure a hazard-free pool, so that actuaries can calculate reasonable, standardized premiums for pool members who meet the eligibility requirements and enroll in the risk pool. In this way, members transfer their individual risk of peril to the pool. The pool shares the risk for all members and covers those whom actually experience the future peril.

If you are thinking about applying for a long term care insurance policy, please be aware that certain pre-existing health conditions can make it impossible for some folks to enroll due to health reasons. If you have any health issues, this article can help you better understand long term care insurance health requirements.

Do not apply for long term care insurance if you CURRENTLY:

* Use a multi-pronged cane, crutches, oxygen, walker or wheelchair

* Require assistance with bathing, dressing, feeding, toileting, urinary or bowel continence, or transferring between bed or chair

* Use/need home health care, adult day care, assisted living or nursing home care

* Require assistance with grocery shopping, use of transportation, use of telephone or banking

( NOTE: These pre-existing health problems may make you uninsurable for buying a new long term care insurance policy. However, all the above health conditions WILL be covered if they occur AFTER you you have purchased your long term care insurance policy. )

In addition, do not apply for long term care insurance if you CURRENTLY have:

* AIDs or HIV infection * Alzheimer's * Amyotrophic Lateral Sclerosis (ALS) * Cystic Fibrosis * Dementia * Hemophilia (other than Von Willebrand disease) * Hepatitis C, Non-A, Non-B, or Autoimmune (Active) * Kidney Failure * Liver Cirrhosis * Memory Loss * Multiple Sclerosis * Muscular Dystrophy * Paralysis * Parkinson's Disease * Post-Polio Syndrome * Schizophrenia * Sickle Cell Anemia * Systemic Lupus Erythematosus

Every long term care insurance company has their own health underwriting standards. Each company's health underwriting standards may vary by state, according to each state's laws.
Note: As you increase in age, so does your risk for health issues. Therefore, most long term care insurance companies will require medical records for people over 45, medical records and phone interview for people 50 and over, and medical records plus a face-to-face health interview for people over 70.

Be aware: If you think you can slip your health issues past long term care insurance underwriters, then think again. First, lying on your application is fraud. Second, it is the underwriter's job to be very thorough when looking through your medical records and assessing risk. Be honest with yourself and with the long term care insurance company you choose.

The upshot of all this is that folks must protect themselves while they are still in good health.
If you fall within acceptable guidelines, then "congratulations", as you can protect your assets and your family's lifestyle stability now, then cross your fingers and hope that you are not one of the nearly 45% of us who will need care at some point in our lives.

About the Author
Long term care insurance activist, Clay Cotton, writes for http://www.prepsmart.com/ - The Online Baby Boomers Decision Assistance Center, where you get Free Long Term Care Insurance advice, comparative rate quotes and personal guidance, all while safely at home in your favorite pajamas and bunny slippers.

Technorati Tags: long+term+care+insurance eligibility healthcare senior+citizens baby+boomers retirement+planning

Baby Boomers Turn 60 – New Challenges Ahead For Those Approaching Retirement Age

2006-10-08T12:01:00.000-07:00

Ontario, Calif., --- Long-term care is the crisis of the 21st century and 3 out of 5 people will need it, while 2 out of 5 will require nursing home facilities.

70% of current nursing home residents deplete their financial assets within 12 months and right now, 12 million Americans need long-term care. “How will increased life expectancy and rising medical care affect you and your family as you age,” asks Frank N. Darras, the nation’s leading disability and long-term care insurance lawyer. See www.sbd-law.com

“It is critical to think now about the best path for aging gracefully and with dignity without a devastating financial trauma near the end of life,” Darras says.

If you are considering long-term care as an insurance option, Darras says these are important questions to consider when purchasing:

• Should I invest the long-term care premiums instead of making payments to an insurance company?

• Why spend money on insurance when I have assets to cover the medical costs directly?

• What type of long-term care policy should I buy?

- A stand alone comprehensive policy?

- As a rider to my life insurance policy? (this is not an accelerated death benefit)

- As an either/or feature in my life insurance policy?

- As an integrated single premium deferred annuity? (usually requiring a $50K lump sum)

- As part of a disability income policy?

• What insurance carrier has the finest claim paying history?

• How can I be sure the insurance company I select will be in business when I need to use the coverage?

• Are insurance carriers financially secure enough to pay out on policies years down the road?

• What is the possibility I could be wrongfully denied coverage when I need it most?

While some Americans will spend all their assets on care, others will plan to give money away or put it in a trust. By doing this, they have no assets and can qualify for Medicaid. This is a tricky business and the risks are enormous. Counting on Social Security is another shot in the dark, considering experts predict insolvency by 2019. In 1945, 42 workers supported each retiree in America, today, 3.4 workers are supporting each retiree.

“Your surest bet,” Darras says, “get reliable competent advice and a sound second opinion so that you and your family are fully protected while moving into this new phase of life. Understand the legalese in your policies and make sure your financial future is secure by making educated and well-researched decisions.” For more information see www.sbd-law.com.

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Long Term Care Insurance and Suze Orman - The Ongoing Controversy

2006-10-06T03:47:00.000-07:00

Copyright 2006 Clay Cotton

Long term care insurance is an obvious “must-have' for Americans with assets and families to protect and with discretionary income to afford the premiums. While Suze Orman publicly promotes this coverage as the foundation of your financial plan, we wonder if she ought to put even MORE emphasis on LTCi protection

People all-too-often assume that long term care is just for the elderly, and it's shocking to learn that over 40% of nursing home residents are currently under age 65. In fact, because of my advanced Multiple Sclerosis, I would be in a nursing home right now if I had LTCi coverage to pay for it, and if my beloved wife, Kimberly, would agree to let me out of her sight.

In any case, while Suze Orman is clearly America's most popular financial advisor, she is also America's most visible proponent of long term care insurance.

This is a good thing for all of us since, of every 20 folks who need long term care insurance, only 1 of us owns it - A sad state of affairs to be sure. And we had better learn more about it fast...

But now the question is this: Should Suze Orman be even more forceful in her insistence that long term care insurance be the bedrock upon which everybody's financial planning must be anchored?

And why all the fuss over long term care insurance, anyway?

Well, just ask Suze Orman: It's because she knows as well as I do why Americans have no other common sense choice than to embrace this family financial tool if they want a mature, secure retirement. I, myself, was stricken with Multiple Sclerosis at age 50 - WITHOUT long term care insurance. Now I can never get long term care insurance coverage because of this pre-existing condition. Rats!

Suze Orman is bringing America's baby boomers into awareness on retirement planning and the need for long term care insurance, and for this she should be commended, but is she saying enough? You be the judge.

Here are few words from Ms. Orman: "Considering how hard people work for the majority of their lives with an eye towards retiring, it's surprising to find that many give little thought to actually funding (and protecting) their retirement."

In You've Earned It, Don't Lose It: Mistakes You Can't Afford to Make When You Retire, Suze addresses this sad fact and "goes beyond the usual financial primer to describe how to safeguard your financial future with smart long term care insurance.""No well-planned retirement should be without long term care insurance. It is the very cornerstone of retirement security." - Suze Orman

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Long term care insurance activist, Clay Cotton, writes for http://www.prepsmart.com/ - The Online Baby Boomers Decision Assistance Center where you get Long term care insurance advice, comparative rate quotes and personal guidance from home in your favorite pajamas and bunny slippers.

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How to Rank any Long Term Care Insurance Company

2006-09-26T05:02:00.000-07:00

Copyright 2006 Clay Cotton

When you consider a life long relationship with a Long Term Care Insurance company, you want to rest in the comfort of knowing that you have settled on a company with the highest possible ratings and reputation. After all, you will need them to be there for you in a pinch when you need to file a claim for the specified benefits.

With a serious relationship like long term care insurance, reliability is really, really important, don't you agree? So our topic today is how to check out a the long term care insurance company to make sure that they meet the highest standards.

In my opinion, the safest thing to do is to work directly with the long term care insurance Buyer's Advocate, because you can be assured that only top companies and policies will be considered.

In any case, over ten years as an observer of the long term care insurance marketplace, I'm not aware of even one case of fraudulent behavior by an insurance company.

Still, it makes good sense to check into a long term care insurance company's market behavior, history, ratings, consumer confidence and their records with state regulatory agencies.

1. Call your State Department of Insurance.

2. Ask for Consumer Assistance.

3. Request data on long term care insurance companies, then for each carrier you are interested in, ask for the company's "Annual Sales Figures for long term care insurance". Also get the total number of Complaints for both Facility Coverage and for Home Care Coverage. Then ask for their total "Long term care insurance Complaints Ratio" or "Long term care insurance Complaints per Million". Compare this for several companies to get a feel for consumer confidence.

4. Have your long term care insurance agent obtain in writing the company's current A.M. Best Rating. It must be A- or above. Accept no B+ or lower ratings unless you have health conditions which prevent coverage with a higher rated company.

5. If you are really serious, you can visit the Department of Insurance in person, and ask to see the "Rate Logs" to determine how many times, if any, a company has raised rates on any group of long term care insurance poicyholders in your state. A history of multiple rate increases over more than a few years would be a red flag.

6. Go to the Public Library - Ask reference desk for insurance rating books, specifically ones like A.M. Best, Weiss Research, S&P, Moody's, etc.

Do this before you make your commitment to one company or another. Sure, it's a little work, but you and your family will depend on this long term care insurance company in the caregiving years, and that Is a time when you want to minimize hassles. You'll be glad you did.

Article Source: http://www.articledashboard.com
Long term care insurance activist, Clay Cotton, writes for http://www.prepsmart.com/ - The Online Baby Boomers Decision Assistance Center, where you get Free Long Term Care Insurance advice, comparative rate quotes and personal guidance, all at home while in your favorite pajamas and bunny slippers. So cool!

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Considering Long Term Care Insurance - Is it An Unnecessary Expense?

2006-09-09T16:49:00.000-07:00

By: L. H. Findlay

Long-Term Care Insurance is still fairly new on the market and a lot of people don't know that it even exists or what it covers. Even those who have heard the term don't know always when benefits are paid, how they are designed, and who qualifies or needs coverage. Many people don't think about this type of coverage until it is too late to get a great rate and higher benefits. They wait till they are past retirement age and closer to needing to cash in the benefits instead of investing earlier and maximizing your options.

It is becoming more of a common practice for people to start thinking about what will happen 30, 50, or more years ahead. Many people invest in 401Ks, IRAs, stocks and bond, and other types of investments to prepare for the future. Many people think this will pay for living expenses and leisure activities once retired. Things don't always go according as planned.

What happens in the unfortunate incidence of an accident and you need help with your daily living activities? Or, you get to a point in your elder years that you require home care, as you grow older? You may decide you would rather live in you home for a long as possible and would need to have enough for personal home care. Some seniors enjoy assisting living facilities that provide 24 hour nursing care, but still let you be as independent as you can. There are also those unfortunate instances where nursing home facilities are need to tend to varying degrees of illness.

Long-term care is designed to provide you help with these services due to a long-term illness or disability. The average cost of these types of care can cost around $40-$100 thousand per year and sometimes more. It is a very quick way to eat your saving and social security benefits. If you think Medicaid or Medicare will help, think again. Even if and when you qualify, your saving is now gone and they will only pay up to 50% of the cost, someone has to come up with the rest. Long-Term Care insurance can help with these costs in the unfortunate event you require nursing care.

Who should consider Long Term Care Insurance? If you think you will not qualify for Medicaid or full Medicare benefits due to a large saving, assets, or high income, this is a program for you. You do not want to end up having your children to pay for these expenses while you have to have them and possibly well after your death. It will keep you able to leave your loved ones a little something instead of sucking all your assets dry. Also if you can afford to pay the premiums you will likely not qualify for assistance so would truly benefit.

If you currently have chronic health issues or have a family history of a long-term illness you would be off purchasing now than waiting. It will be too late to get a policy after you have already developed a long-term illness or disability. If you think at any point you might fall into any of the categories you might want to consider getting a plan earlier to be safe and covered. You can purchase a policy from most large insurance companies. As always, every state has different insurance regulations, therefore it is best to check with your state on specific determining factors and qualifications.

This coverage will help provide nursing-home care, home-health care, personal or adult day care usually for individuals above the age of 65 or with a chronic or disabling condition that needs constant supervision. LTC insurance offers more flexibility and options than many public assistance programs. Long-term care is usually very expensive, which is why most people need insurance. For example, on average, nursing facilities providing skilled care charge $150 to $300 per day, or over $80,000 a year or more. Even custodial home care at three visits per week, can cost over $9,000 a year.

Most LTC insurance policies will cover only a specific dollar amount for each day you spend in a nursing facility or for each home-care visit. Thus, when considering an LTC insurance policy, read the policies carefully and compare the benefits to determine which policy will best meet your own needs.

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Long Term Care Lawsuits

2006-08-25T03:55:00.000-07:00

This post is more of a rant than an informational post.

I just saw a commercial that discusses the horrors of some long term care facilities. It mentioned that in long term care facilities that patients are mistreated and even abused in some cases by the staff of the nursing homes.

Who made this commercial? Well a lawyer of course! They were nearly begging you to sue a long term care facility for the mistreating that your loved one has surely suffered.

To this I say.....Well, I won't use the word I want to use...But, bulls produce it and you try not to step in it.

Are there a handful of cases each year where patients are mistreated? Yes. Does this happen as often as lawyers and some media outlets would like you to believe? No.

In my years of working in health care I have met numerous health care providers, nurses, doctors, administrators, etc. I never met a person who was interested in harming a patient in any way shape or form. These people got into healthcare because they care about people, not for the money.

I say to the lawyers producing such commercials that they should be ashamed of playing on peoples fears and the few cases a year that get extraordinary media coverage.

I have heard that in Florida there are many nursing homes that do not carry certain liability insurance coverages because of the proliferation of nursing home lawsuits. Most people are aware that many retirees move to Florida in retirement for the climate and weather. Driving around Florida you will see multiple billboards advertising for lawyers that want to help you sue a nursing home.

As a result of the eagerness to sue, the costs of liability insurance are far too excessive for many long term care facilities to afford, therefore they do not carry it. This means that one substantiated expensive lawsuit will close down one of these facilities. On the other hand, if they did carry the insurance, they would have to close anyway because they could not maintain their budgets.

My point is that frivolous lawsuits are driving health care costs through the roof. Would I sue a long term care facility for malicious mistreatment of a a loved one? Yes.

Malicious mistreatment is unacceptable.

Medical mistakes made by human beings are unfortunately inevitable.

Long term care insurance can help you to try and avoid some of these issues by helping you to be able to afford the higher quality long term care. If you rely on Medicaid then you are limiting yourself to facilities that accept Medicaid payments. Medicaid payments are generally very low. These Medicaid facilities are often not able to afford the amount of staff and the quality of staff that you would like to see caring for you or your loved ones.

So what is my point? I don't know I am just rambling for the most part. But I do want to say that healthcare workers as a whole are not out to harm you or your family members that are in long term care facilities. Most of these healthcare workers are going to do everything in their power to provide quality care.

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Baby Boomers - A Healthcare Crisis Nears

2006-08-07T14:20:00.000-07:00

Copyright © 2006 Heath Atchison

Baby boomers are quickly approaching retirement age, and as they do, there are a number of concerns that need to be addressed, particularly in the area of healthcare. Unfortunately, there appears to be no easy answers to the healthcare problems that baby boomers, and the population in general, will face in the very near future.

Baby Boomers are people who were born between 1946 and 1964. During this period of time the United States of America saw an explosion in birthrates that had never been seen before and nothing like it has been seen since. Today, baby boomers make up approximately 28% of the total United States of America population.

With this group of people occupying such a large segment of the population, it is predicted that there will be a major financial strain on the healthcare industry as a whole, as baby boomers reach retirement age. There are many reasons why the healthcare industry will face problems as baby boomers begin to retire and begin to need long-term care services.

Baby Boomers Are The Nurses

Go to any healthcare facility today and look around at the nurses who are working there. One thing will become abundantly clear to you; the vast majority of nurses working in healthcare are in fact baby boomers themselves. We have heard for the past few years about nursing shortages and predictions that these nursing shortages will only get worse.

There are many reasons why the United States of America currently faces nursing shortages. Traditionally, nursing has been a career dominated by women. Women have made great strides in efforts to gain equality over the past few decades; much of this progress is attributed to women who are from the baby boomer generation. With these strides in equality, women have realized that they have many more career choices other than being a nurse, a schoolteacher, or a homemaker. Today women are running the largest corporations in America, making great salaries, and receiving high levels of prestige.

A Two-Fold Problem

As baby boomers retire a two-fold problem is created. First, there will be even fewer nurses, because baby boomers make up such a large part of the current nursing workforce. The second part of the problem is that as baby boomers, 28% of our population, retire they will require more healthcare as a part of the aging process.

As you can see, there are some serious healthcare problems that need to be addressed. Leaders in the healthcare industry have been working extremely hard in trying to find a solution. Sadly their efforts are only making minimal impacts in increasing the nursing workforce.

Healthcare companies have tried everything from raising salaries to offering outrageous sign on bonuses. Money does not seem to be the key to get people interested in nursing. Survey a group of nurses and most will not complain about their salary. What they will complain about is the day-to-day workloads that they face. Nurses are overworked and carry larger and larger patient loads as a result of shortages.

Combine this with the fact that nurses, who typically get into healthcare to provide direct patient care, are being forced to do more administrative type tasks. Some of these tasks include excessive charting to meet requirements set forth by Medicare and insurance companies, and trying to get patients care certified, or paid for, by insurance companies. Most nurses did not become nurses to sit behind a computer and to talk on the phone for hours.

How This Will Affect Baby Boomers?

Advancements in medical technology and science means that people are living longer. This does not always mean that there is a high quality of life for those that are living longer though. Many of these people who would have died from a medical condition two decades ago can now live for a long time to come. These people often require a great deal of long-term care, whether it is at home or in a long-term care facility.

Those receiving long-term care at home require nurses to help them with their day-to-day tasks. The following is a quote taken directly from the Medicare website (http://www.medicare.gov/LongTermCare/Static/Home.asp)

"Generally, Medicare doesn't pay for long-term care. Medicare pays only for medically necessary skilled nursing facility or home health care. However, you must meet certain conditions for Medicare to pay for these types of care. Most long-term care is to assist people with support services such as activities of daily living like dressing, bathing, and using the bathroom. Medicare doesn't pay for this type of care called "custodial care". Custodial care (non-skilled care) is care that helps you with activities of daily living. It may also include care that most people do for themselves, for example, diabetes monitoring."

There is also a great deal of talk about whether or not Medicare will even be around in the coming decades. Consider the fact that 28% of the population will no longer be contributing to Medicare via taxes, while at the same time that 28% will be using more of the resources.

Is It All Really That Bleak?

Yes and no. It is true that there are no easy solutions in the foreseeable future to help deal with the nursing shortage, while the need for nurses will increase dramatically. It is also true that the economics of supply and demand will create a situation where healthcare will become even more expensive, while healthcare providers continue to raise salaries in hopes of attracting nurses.

So where is the good news you ask? The good news is that nurse recruitments are showing "some" success. Young people are showing a renewed interest in nursing, due in large part to huge marketing campaigns put out by nursing schools and healthcare organizations. The flip side of this is that these young people are going for the high level nursing degrees such as Registered Nurse (R.N.) and Nurse Practitioners (N.P.), but the lower level (lower paying) jobs such as Certified Nursing Assistants (C.N.A.'s) and Certified Medical Assistants (C.M.A.'s) remain understaffed. These are the ones usually providing direct care while the RN's and Licensed Practical Nurses (L.P.N.'s) are meeting accreditation requirements by doing all of the charting and talking to insurance companies.

The other good news is that insurance companies are planning ahead and offering long-term care insurance plans that will allow you or your loved ones the ability to be able to pay nurses for long-term care services. Many baby boomers are taking their future into their own hands by taking out these long-term care insurance policies.

Finally, leaders in government and the healthcare industry are working diligently to address what is a predictable issue. Since these are predictable events, they can be planned for as much as possible.

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Long Term Care Provider

2006-08-03T05:11:00.000-07:00

by Jessica Farrell

A large percentage of long term care is given at home generally by non compensated labor. That means usually a child, spouse or relative is caring at home for the ill or injured person. This can be a difficult situation as it proves to be is taxing on the caregivers, and can frustration and burn out.

To prevent this uncomfortable situation, many families who can afford long term care and have insurance to cover such, often place their loved ones in long term care facilities. Depending on the mobility and extent of illness of the patient, long term facilities can mean a few hours a day in an Adult Day Care to 24 hour a day 7 day a week care in a nursing home.

There are several insurers that offer coverage for long term care such as Met Life, Prudential, and New York life, just to name a few. If your loved one had not planned ahead and purchased the necessary insurance, Medicaid (assuming they are eligible) will usually pay for most if not all of the expenses of long term care in approved facilities. Some of the long term care options are as follows:

*Adult Day Care: This service helps the caregiver by providing a nurturing environment where the loved one can be cared for during the day. This provides the much needed relief for the caregiver.

*Assisted Living: This is a facility for people who needs help with day to day living functions, but does not require 24 hour professional or skilled nursing care.

*Hospice Care: This is care for the terminally ill, usually considered with cancer patients, but it should also be considered for Alzheimer and other patients with degenerative, debilitating illnesses.

*Nursing homes: A full time facility in which the patient is cared for around the clock by licensed professionals.
The key to providing long term health care is advanced planning.

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How to Define Long Term Care

2006-07-28T01:55:00.000-07:00

Long term care can mean many different things but any chronic or disabling condition that requires nursing care or constant supervision can bring on the need for long term care services. Long term care means not only care in a nursing home, it can also mean nursing care in your own home and help with the activities of daily living, such as dressing, eating, bathing and taking medicine.

There are many different services that would fall under the definition of long term care. These services include institutional care, i.e., nursing facilities, or non-institutional care such as home health care, personal care, adult day care, long term home health care, respite care and hospice care.

There are other long term care services that provide people with an option other than nursing home care. These services are defined below:

Home health care consists of services received in your home, and can include skilled nursing care, speech, physical or occupational therapy or home health aide services.

Home care (personal care) consists of assistance with personal hygiene, dressing or feeding, nutritional or support functions and health-related tasks.

Adult day care is for persons living at home, and provides supervision for elderly persons during the day when family members are not at home. It is a method of delivering a variety and range of services including social and recreational, and in some cases, health services, in a group setting.

Assisted living facilities provide ongoing care and related services to support those needs resulting from a person's inability to perform activities of daily living or a cognitive impairment.

An alternate level of care in a hospital is care received as a hospital inpatient when there is no medical necessity for being in the hospital and is for those persons waiting to be placed in a nursing home or while arrangements are being made for home care.

Respite care includes services that can provide family members a rest or vacation from their caregiving responsibilities. It can be provided in a variety of settings including an individual's home or a nursing home.

Hospice care is a program of care and treatment, either in a hospice care facility or in the home, for persons who are terminally ill and have a life expectancy of six months or less.

LTC insurance: A smart financial decision?

2006-07-25T16:26:00.000-07:00

Ok, let's say that you have some disposable income and you are trying to decide between purchasing long term care insurance and investing your extra money into other investments such as 401k's or mutual funds.

Some would say, "Hey, I'm still fairly young, so why not invest my money into a mutual fund and use the money made off of it to purchase long term care insurance at a later date"
For example, a person could invest their money at age 40 and cash the investment in at age 60 and the income made off of it could pay for their long term care insurance.

On the surface this sounds like a very smart plan that will make the most out of your disposable income. In general though this is not a financially sound move and there are a few reasons as to why that is.

First of all, if you take out a long term care insurance plan at age 40 vs. age 60 the amount of the premiums that you pay will be vastly different. The older a person gets the higher the monthly premium is for the long term care insurance policy. This is done because the insurance company knows that the older a person gets the more likely that person is to actually use the insurance.

Second, a person who waits until age 60 to get long term care insurance could experience a variety of medical problems that might make him or her fail underwriting screens (physical exams). Even if you are able to pass the underwriting screens, you will still likely face a higher insurance premiums because of those health problems that have accumulated.

Third, there is always the possibility that a person would need to use the long term care insurance benefits long before reaching age 60. In fact, many people require services that LTC insurance covers before they reach age 65.

As you can see, the longer that a person waits to take out a long term care insurance policy, the greater the likelihood that he or she will pay much more for the premiums of that policy. The residual income made by investing in mutual funds or 401k's will generally not make up for the increased price that you will pay for the insurance plan.

Long Term Care Insurance Shopping Tips

2006-07-20T10:45:00.000-07:00

By Scott Lunt

It's hard to face the reality of needing long term care. But more and more people are realizing that if they do need it, they may lose their entire retirement assets just to pay for it. It's now considered part of a smart financial plan to have long term care insurance if you don't have enough assets to cover the costs and still maintain your standard of living. The insurance can seem expensive so keep these points in mind when shopping for quotes.

Your age, health and desired benefits are the biggest factors that affect how much you pay for long term care insurance.

The older you are, the greater the chance that you may need long term care. Thus insurers will charge more to insure a 65-year-old than a 55-year-old. A recent study* released by the American Association for Long-term Care Insurance showed that the difference in yearly premium between a 55-year-old in good health and a 65-year-old in good health -- for the same benefits -- averaged almost $700 more.

The benefit affects your premium. You can choose a per diem amount for most policies based on what you think you may need. For example a policy may pay $30, $100, or $300 per day. The higher the benefit, the more your premium will be. Also, you can choose different lengths of waiting period before your benefits kick in. The longer the waiting period, the lower your premium should be.

Rates can vary between companies, so the most important consideration when shopping for long term care insurance is to get comparison quotes. When you're comparing different company quotes take a look at the following:

1. How much does the policy cost per month and per year?

2. Is there an inflation adjustment feature? How much does that feature cost?

3. What services are covered? (Nursing home, at-home care, assisted living care, etc.)

4. What is the waiting period before benefits start?

5. How much does the policy pay per day for the services? How long does the benefit last per service? Is there a lifetime benefit maximum?

6. Are pre-existing conditions covered? What conditions are covered?

7. Is the policy guaranteed renewable?

8. Does the company have a financially strong rating from an independent rating agency?

Once you select a policy, take the time to read through it carefully. If you don't understand any part of the policy, ask questions.

*2006 National Long-term Care Insurance Price Index

Scott Lunt is a freelance writer with over 15 years experience writing insurance-related articles. You can compare long term care insurance quotes and find more tips on saving on car, home, life, health and long-term care insurance at LowerYourInsurance.com.
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I'm young and healthy, I don't need long term care insurance

2006-07-16T16:58:00.000-07:00

The truth is that even though you may be young and/or healthy today, things can change in the blink of an eye and will make you wish that you had taken out long term care insurance.

Surprisingly, about 40% of people needing long term care are adults aged 18-64, NOT people of retirement age. These people could have experienced any number of health problems that led them to needing long term care. Some examples could be accidents, strokes, multiple sclerosis. etc.

So regardless of your age and current health status you should really be considering long term care health insurance. Yes, long term care insurance isn't always cheap, but if you plan ahead now you may save money by paying lower rates. Long term care insurance typically becomes more expensive as you get older and as health problems develop or increase.

Long Term Care Insurance vs. Medicare vs. Medicaid

2006-07-15T05:20:00.000-07:00

Think Medicare and Medicaid will take care of all of your long term care insurance needs? Think again.

Medicare will NOT cover services considered to be long term care services such as custodial care. If you have the idea that Medicare will take care of all of your long term care insurance needs then you need to read the following:

Medicare is a Federal health insurance program generally covering people who are age 65 or older and some disabled persons. Medicare will cover the first 100 days of care in a nursing home if:

1) you are receiving skilled care, and 2) you have a qualifying hospital stay of at least 3 days and enter the nursing home within 30 days of that hospital discharge. There are also some deductibles and copays (meaning you have to pay part of the cost). Medicare also covers limited home visits for skilled care.

It's very important to realize a few things about long term care versus Medicare's coverage:

most long term care is not skilled care,

most long term care does not take place in a nursing home,

most nursing home stays do not immediately follow a hospital stay,

most people who require care in their home usually need more or different types of care than Medicare covers, and most people won't start Medicare coverage until age 65.

So don't count on Medicare to cover your long term care needs.

What about Medicaid?

Medicaid is set up by individual states, and subsidized by the feds, to act as a safety net for the poor and impoverished. Medicaid covers long term care services and might cover you if you meet your state's poverty criteria and receive care that meets your state's guidelines. Usually this means expending all but $2,000 of your assets and savings (except for perhaps your house and your car). It also means receiving care from a limited number of state-approved caregivers (mostly institutions like nursing homes) that are willing to accept Medicaid's payments.

In other words, if you have any money saved up (like retirement plans, 401k's, etc) you have to cash it all in and spend it on your long term care insurance needs before you can apply for Medicaid. It also means that you do not have choices in who provides the long term care to you.

With Medicaid, you are forced to receive services from a Medicaid provider, often these providers, although well meaning, are the bottom of the barrel providers. Medicaid does not reimburse very well at all for services provided by healthcare organizations. This means that those who do accept Medicaid as payment are often understaffed because they cannot afford to pay their staff what their competitors do.

If you take out long term care insurance you do not have to deplete your assets in order to receive needed care, and you will have choices as to who provides your care. If you do not have long term care insurance then you are taking a big risk.

What is Long Term Care Insurance?

2006-07-13T13:30:00.000-07:00

By Elizabeth Newberry

Long term care insurance can be a complex and sensitive subject – one that most people hope they will never have to take out. As the name suggests, it is the name given to the insurance that provides coverage for the care given to a person when they need permanent and continuous care.

Long term care has been described as the biggest challenge that an elderly person could have - and an estimated 70% of people aged 65 or over will need long term home care at some point in their lives.

This care is usually provided by a family member or close relative – often a spouse, a daughter or daughter in law. Around 70% of long term care is provided in the home and can include medical care and help with everyday activities. Long term care insurance offers coverage and benefits for services not covered by regular insurance or by Medicare.

Not surprisingly, long term care doesn’t come cheap and paying for it can be a challenge – studies show that the average cost for the insurance increases by around 12% every year – the average cost of a year spent in a nursing home is around $41,000.

Long term care insurance makes sense if you are young and have the necessary time to prepay for adequate coverage – although most of us don’t think about it when we are young. There are several different methods of paying for the insurance, or for older people who don’t have the funds; there may be other options, such as using money from assets. Medicare may help cover the costs for those who have no other options.

Apart from being an unavoidable fact of life for most older people, long term care should not necessarily be seen as something negative. For many people, it offers a way to maintain some of their independence as well as peace of mind, and ensures their later years won’t put a strain on family relationships.

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Statistics on long term care

2006-07-05T15:29:00.000-07:00

Why should you get long term care insurance?
Will you really need it?
What if you never go to a long term care facility?
Wouldn't it be wasted money?

These are some of the questions asked by those
who may be considering long term care insurance.

Here are some surprising statistics if you think
that you will never use or need long term care insurance.

According to the Society of Actuaries in 1995

The odds of having a house fire with damage of at
least $3,400 is......................1 in 200
The odds of having an automobile accident with
damages of at least $3,000....1 in 14
The odds at age 65 of spending at least 2.5 years in
a long term care facility....1 in 3

Now the question is, do you have house insurance?
Do you have auto insurance?
Of course you do, it would be silly not to. You have
to protect your largest investments in case something
were to happen to them.

But these same thoughts are rarely applied when
people consider the likelihood of needing
long term care insurance at some point in their
life. Consider the fact that the cost of long term care
for one year can cost $45,000-50,000 OR MORE
and you can see why people of all ages should be
considering long term care insurance coverage.

Odds are very high that you will spend some time
in a long term care facility, the statistics above do
not account for spending less time in a long term
care environment, which would certainly be higher.

The typical scenario is that an elderly person falls ill
with cancer, diabetes, pneumonia, stroke, etc. That
person is then transferred from the hospital to a long
term care center as soon as the patient is stable. The
hospitals have incentives from insurance companies
to get a patient out of the hospital as soon as possible
so that the hospital does not have a high ALOS
(average length of stay).

This means that recoveries that are expected to only
require 2 weeks could result in a stay at a long term
care facility, and thus need long term care insurance.

Why Long Term Care Insurance?

2006-07-03T21:16:00.000-07:00

Why did I create a blog about long term care insurance?

The answer is fairly simple, I graduated recently with a masters in health services administration and during that time period I learned a great deal about the impact that long term care can have on a persons life.

I learned that long term care facilities are extremely expensive, they can range up to $10,000 a month or more depending on the type of facility and the level of care received. I also learned that most elderly people who do not have long term care insurance are required to deplete their assets before being able to qualify for Medicaid.

Medicaid is the coverage that a person can receive in addition to Medicare if they meet the financial criteria. People who get both Medicaid and Medicare are considered to be "dual eligible".

The unfortunate truth is that long term care facilities are not all created equal. As my own parents age I have been thinking more and more about the type of long term facility that I would like to see them go to if the need ever arises.

Where I would "like" to see them go is to the more expensive facilities because the more expensive ones typically provide a higher quality of care. The main reason I say this is because the more expensive long term care centers are able to pay nursing staff what they deserve and are able to create and maintain a well qualified staff of caregivers.

Unfortunately, neither of my parents are listening to my suggestions that they take out long term care insurance.

Without long term care insurance, a person is quite limited in the choices of long term care facilities, unless he or she has a bundle of money in the bank. Long term care is expensive and long term care insurance can help you to get the care that you or your family members deserve when the times comes.