Choices in Long Term Care :

 Understanding the benefits of Long Term Care Insurance.

 

 

 

 About 10 million Americans, 65 and older now depend on long term care services, and that number is expected to double by 2040. 1

An estimated 70 percent of people who reach the age of 65 will need some form of LTC before they die. 2

 1. Source: “Report Projects Future Need for Long-Term Care, 
      Effects on Family and Public Policy.” The Urban Institute. 5/7/07.
2. Council of Economic Advisors. Economic Report of the President.
    Washington, DC: U.S. Government Printing Office. 2/17/07. 

 

Where is care provided?
Care can take place in a variety of settings:

• Home Care
• Community Based Care
• Adult Day Care Centers
• Assisted Living Facilities
• Nursing Homes

What are the costs associated with Long Term Care? 

National average costs:

• Home Care Providers
  Certified Home Health Aides:  $38/hour
  Homemaker services:  $18/hour
• Adult Day Care
  Community Center:  $59/day
• Assisted Living Facilities
  Private one-bedroom unit:
  $3,008/month or $36,096/year
  (Some facilities charge a one-time community or entrance fee ranging between $35 and $118,180 with a national average of $2,316.)
• Nursing Homes
  Private room: $76,285/year ($209 daily national average rate)
  Semi-private room:  $68,255/year ($187 daily national average rate)
  (Urban areas are 17% greater than non-urban areas, on average.)

(Source: 2008 Genworth Financial Cost of Care Survey.  Conducted by CareScout, 4/2008.)

 

What are the most common long term care funding options?

• Your Family
  Out of love and necessity, families help.
• The Government
  Medicare and Medicaid generally limit your long term care options.
• Your Personal Savings
  Jeopardizing your goals.
• Long Term Care Insurance
  Transfers some of the risk away from you. May prevent invasion of principal.

 

What are the benefits of buying Long Term Care Insurance?

 

 

• Avoids depending on your family or friends.
• Relieves emotional burden on your loved ones.
• Provides more independence and control over your health care decisions and maintains options as to how and where to receive care.
• Preserves the future quality of life for your spouse and heirs.
• Avoids using your retirement savings or personal assets to pay for long-term care services.
• Provides peace of mind!

 What is the Tennessee Partnership Program Deficit Reduction Omnibus Reconciliation Act of 2005?

• Reduces Federal Medicaid spending by approximately $40 billion over the next 5 years.
• Encourages expansion of Long Term Care Partnership programs to new states.
• States can choose to participate (Tennessee began in fall of 2009).
• Allows consumers to purchase a Long Term Care Insurance policy whose benefits must be utilized prior to qualifying for Medicaid.

What does that mean to me?

• Policies must be tax-qualified.
• Policies must have certain inflation protection requirements.
• No extra charge for benefits.
• Dollar-for-dollar Medicaid asset protection.
• Heirs protected from estate recovery when the Medicaid recipient passes away.

What does dollar-for-dollar Medicaid asset protection mean?
Those seeking to qualify for Medicaid would be permitted to retain assets equal to the dollar amount of long term care insurance benefits received.  This applies even beyond the level of assets otherwise permitted under the state’s Medicaid plan.

Example:
If you purchase $250,000 of coverage through a Long Term Care insurance policy, and subsequently receive $250,000 in benefits, you would receive $250,000 of asset protection when qualifying for Medicaid.

 

 

Is Long Term Care Insurance Right for you?

• Do you have assets to protect?
• Do you have plans for your assets?
• Might you or your spouse someday need care?
• If so, how would you pay for care?
• How concerned are you about assuring that you maintain your financial security and independence?
• How would this affect your family, both emotionally and financially?

 

Contact IntelliPlan Inc. to schedule a complementary, no-obligation review of your needs. Design a plan that will you and protect your assets from medical costs or spend-down provisions today!

                 

Click here for Free US Government LTC guide