People tend to think they will never
need long term care. Unfortunately when they do need
it, they are not prepared. With long term care
insurance you can take control and be prepared. It
helps you:
Retain your independence
Preserve your quality of life
Stay at home as long as possible
Maintain flexibility in care options
Protect your assets and savings
Avoid burdening friends and family
The Risk of Needing Long Term Care
"Everyone is at risk not only of having a family member
in need of long term care, but also of needing assistance
themselves. About 45 percent of the long term care
population is under the age of 65. Yet, although the need
for health insurance to cover a patient's medical expenses
in case of catastrophic illness is widely recognized, few
people are insured against the costs of providing long term
support services for that same person. This lack of
insurance coverage jeopardizes the financial security of
families and diminishes the economic security of the
country."
Why Long Term Care is a Growing
Concern
The Census Bureau projects a dramatic increase in the
number of persons 65 and older:
In 2000, there are an estimated 35 million persons age 65 or
older in the United States... The older population is
expected to double over the next 30 years to 70 million by
the year 2030.
Won't the Federal Government Pay for
My Long Term Care?
While many people think the federal government pays for
long term care expenses, nationally, over 25% of all nursing
home expenses are paid out-of-pocket by individuals and
their families. (see graph below.) Neither Medicare,
Medicare Supplement Insurance nor the major medical health
insurance provided by employers is designed to pay for long
term care expenses.
Here are the facts:
Medicare
While
Medicare helps provide up to 100 days of skilled
nursing facility care, it doesn't cover custodial care
for personal needs or care that doesn't require
professional medical skills or training.
Admission to a skilled nursing facility must be
within 30 days of a three-day hospital stay, and
admission can only be for the condition that was treated
during that hospital stay.
A physician must certify the need for daily skilled
care.
Medicare Supplement Insurance
Medicare Supplemental Insurance plans usually only
cover the co-payments and deductibles of the limited
skilled nursing benefits covered by Medicare.
Medicaid
Medicaid is a welfare program that requires
individuals to spend down most of their savings and
income before becoming eligible.
To qualify, you are required by Medicaid to deplete
your assets to be at or below your state's poverty
level.
Medicaid also imposes many restrictions, and your
choice of facilities and locales is limited to those
that accept Medicaid-eligible patients.
The spouse of a Medicaid recipient is allowed to
keep a low level of income and certain assets in order
to avoid poverty, but must pay amounts above these
levels for the institutionalized spouse's care.
What is the Cost of
Waiting to Purchase Long Term Care Insurance?
"For many, it may make sense to purchase
long-term care insurance when they're relatively
young, because the sooner they start, the lower the
premium they pay...A better reason to begin early is
that changes in your health may prevent you from
buying it later."
-Chicago Tribune, 6/19/01
If you are thinking of waiting to
purchase long term care insurance coverage, consider the
impact of waiting:
Increases the risk of being ineligible for insurance
Decreases the overall time you have long term care
insurance coverage
Can increase the overall cost of coverage because
premium rates increase with age
Waiting delays covering your long term care risk and can
cost you money.
Long Term Care
