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Long Term Care
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What is a Long-Term Care Partnership Program?

 

The Long-Term Care Partnership Program is a program that each state is required to implement in order to reduce the state's Medicaid burden.    Each state is to work with the insurance industry to offer affordable long-term policies reducing the burden of the state's Medcaid system.

 

How does the plan work?

 

The plans use the dollar for dollar model for determining the amount of assets a person may maintain in qualifying for Medicaid.  Under the dollar for dollar model for every dollar that a long-term care insurance policy pays out in benefits, a dollar of personal assets can be protected if the individual apply for Medicaid.

 

How do I know if the Plan is a Partnership Plan?

 

For many people who have already purchased a plan prior to the state implementing a partnership plan, there are three requirements that a plan must have.  If a plan has these three requirements then it may qualify for an exchange to a partnership  plan once approved in your state.  The requirements are:

  1. Policy must contain provisions contained in the National Association of Insurance Commissioners Model.
  2. Must be tax-qualified.  The IRS will not tax the benefits.
  3. Policy must contain age appropriate inflation protection.

 

For more information, or to discuss your long-term care plan, contact us.
 
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Is Long-Term Care Insurance needed?

According to the US Department of Health and Human Services at least 70 percent of people who are over the age of 65 will require some sort of long term care.  Long term care is designed to provide you with assistance when you need assistance with either of the following daily activities:

  • Eating
  • Bathing
  • Continence
  • Toileting
  • Dressing
  • Transferring (getting out of a bed or chair)

A person may need assistance in these areas either temporarily or for the remainder of their life.  Long term care services are typically covered by Medicaid, for those that qualify, or via private insurance referred to as long term care insurance.  Long term care insurance can include:

  • Home health care by a home health aid, or homemaker
  • Assisted living facility or community
  • Skilled nursing facility
  • Adult daycare
  • Alzheimer’s facility
  • Hospice

How will you pay for this care?

Long term care is quite expensive, and increases annually by 4% according to the consumer index.  According to the U.S Department of Health and Human Services, the average costs in 2009 within the United States are:

  • $72,270 per year ($198/day) for a semi-private room in a nursing home
  • $37,572 per year (3,131/month) for a single bedroom unit in an Assisted Living Facility
  • $21/hour for a Home Health Aide
  • $19/hour for a Homemaker services
  • $67/day for care in an Adult Day Health Care Center

How can long term care insurance assist you?

  1. Pay all or a substantial portion of the cost for your care.
  2. Gives you the ability to decide where you want to receive your care (home, etc.)
  3. Preserves your standard of living, and savings.
  4. Prevents you from becoming a financial, and emotional burden to your family.

Why should you work with JMF Insurance Agency for your planning?

Long term care is an important aspect of your life.  Insurance companies underwrite differently.  Therefore, by not working with an agency that has access to a wide array of companies, you may not obtain the best plan for your needs both financially, and product wise.   By working with us you we will review your situation with each of the “A”rated carriers to which we have access.  This gives us the ability to find a great fit for our clients.  Our carrier line-up includes:

  • Mutual of Omaha
  • Metlife
  • Genworth
  • MedAmerica
  • John Hancock
  • Prudential
  • American General

Take the next step and contact us to begin creating your long term care plan.

 
 
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