Top Questions about Long Term Care

Information on Long Term Care and Long Term Care Health Insurance
What are the first things you did when you woke up this morning? You probably got yourself out of bed, made your way to the bathroom, took a shower, got dressed, made yourself breakfast, and kept yourself on schedule the whole time. This was most likely the easiest part of your day, and with it out of the way you can get on to more important things. Imagine that it was in fact, the most difficult part of your day. You could not even get up in the morning without help from others. You weren’t able to keep track of priorities, so you couldn’t get things done on time. And simply moving from one task to another was either too painful or too confusing for you. This is what it is like for many people, elderly and otherwise, who are debilitated by illnesses like Alzheimer’s, Parkinson’s, and other physical and cognitive problems. What these people require is Long Term Care, which guarantees them the ability to do those things that we take for granted and make our lives that much easier.

The Necessity of Long Term Care
In 2004 it was estimated that 12.4% of the population in the United States is over 65. It is one of the fastest growing demographics in the country, and with good reason: advances in medicine, improved eating habits and an emphasis on exercise has increased the average lifespan significantly. In particular it is those over the age of 80, who were previously a group virtually nonexistent now are appearing more and more. Longevity is indeed a positive thing, but diseases and afflictions that commonly strike what was once considered incredibly aged now appear regularly. Strokes, cancer, Alzheimer’s and other conditions become more and more prevalent, and science and medicine that might develop cures has not yet caught up with its counterpart which made life so long.

Another factor that has significantly increased the demand for Long Term Care is the change in the basic structure of the family. With women so commonly in the workforce, no longer can a spouse be at home to constantly watch over an elderly relative. In times past when illness struck, a parent or parent-in-law might already be living with their extended family. But Social Security, benefits for workers including pensions, and other factors have made the elderly financially and socially independent.

The Cost of Long Term Care
Among some of the most costly services offered by businesses, Long Term Care can be a financial drain. Nursing homes, the most expensive form of Long Term Care have an average cost of $40,000 a year. In some areas one year in a nursing home can cost as much as $100,000. Home visits by a nurse or other health care professional, at the other end of the financial scale, can cost at least $1800 a month for a daily visit of one hour. For an eight hour visit every day, one month can cost $7200.

This is when payment becomes an issue. Such a hefty sum isn’t something to think about and quickly make a choice. Long Term Care is a major purchase or investment, and like all large financial decisions, there are many options to consider.

The most simple and obvious way to pay for Long Term Care is cash. It is possible to simply write a check to the provider of your care weekly or monthly to reimburse them for their services. However, this is not always possible. If you do have enough liquid assets to pay for Long Term Care out of your pocket, you are in the minority. Few people have enough cash to maintain such a lifestyle. And even then, such a great cost becomes a great drain on your assets. If you don’t have the cash, mortgages and loans can be taken out, but they might be difficult to pay back if all your income is going towards paying for Long Term Care for someone.

Welfare or other government services can pay for the Care you or a loved one might need. Medicare will cover some services, such as outpatient hospital visits, doctors’ fees, and some home care. But it will not cover extensive care by a nurse. Medicaid will eventually pay for Long Term Care, but only after your resources have been depleted and you have no other money. This also limits your choice in facility for Long Term Care.

Medicare: www.medicare.org
Medicaid: cms.hhs.gov/medicaid.

The last, and perhaps best way to pay for Long Term Care is LTC Health Insurance.

Long Term Care Health Insurance
Long Term Care began about 40 years ago as a supplement to Medicare. Since then, it has become more comprehensive in its benefits and broader in its coverage. It is like any other form of insurance, in which a person wishing to be insured pays monthly premiums to an insurance provider, and when someone finally needs Long Term Care they file a claim and eventually are paid their benefits.

LTC Health Insurance Essentials
Financial Strength: Many policies might be very appealing, but make sure that with all the benefits they offer they still last long enough to care for you or a loved one. People who suffer from a condition that requires Long Term Care can lead long and full lives after they enter Long Term Care. Don’t let their coverage run out.

Daily Benefits: The cost of one day in a nursing home can be $130 in most areas and $200 in metropolitan areas. You should know what the average cost of Long Term Care is in your area or at a specific facility. Daily Benefits should be considered at the purchase of a policy.

Inflation: At 5% annual interest, in 14 years the cost of Long Term Care can double. Make sure that all your payments of premiums don’t end up paying for inadequate daily care. Be sure that your policy protects from inflation.

Comprehensive Coverage: Comprehensive coverage is important because no one can know what illness might befall a person. The point of Long Term Care Health Insurance is to prepare for the unknown. With comprehensive coverage, no matter the problem you or your loved one will be covered.

Claims: Be familiar with your policy and the claims payment process so that when it comes time for your policy to be fulfilled and your claims paid, you understand what you should be receiving and what is required of you. Ask your insurance company’s representative how many claims by his or her company are actually paid.

Premiums: Remember that an insurance provider has the right to raise your premiums at any time. They cannot single out an individual and raise that person’s premium, but a group or class of policies can see a rate increase. Find out how your insurance company operates and if they ever do this.

Those Who Should Be Covered
LTC Health Insurance is commonly referred to as “asset protection,” since its only necessary to protect what funds and property a person might have. Because Long Term Care is covered by Medicaid when you have no more assets, only those with assets worth protecting are eligible for Long Term Care Health Insurance. Also keep in mind that, as with any insurance policy certain illnesses and conditions may preclude you from coverage. Consider what you or your loved ones may susceptible to, and find out what factors might bar you from purchasing an LTC Health Insurance Policy.

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