Long-Term Care Insurance and Partnership Programs

The world of Long-Term Care Insurance (LTCI) is an ever-changing realm where the Federal Government, State regulators and Insurance agencies are working to present viable and beneficial options to millions of Americans. The LTCI partnership program’s historical roots began in the 1980s with legislation designed to encourage people who might otherwise turn to Medicaid to finance their long-term care. Until recently, these partnership programs only operated in four states: California, Connecticut, Indiana and New York.

With the passage of the Deficit Reduction Act of 2005 (DRA 05), many other states have adopted the requirements for a qualifying Long-Term Care Partnership Program policy. Currently, twenty two additional states have already enacted authorizing legislation: Arkansas, Colorado, Florida, Georgia, Hawaii, Idaho, Illinois, Iowa, Maryland, Massachusetts, Michigan, Missouri, Montana, Nebraska, New Hampshire (pending), North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island, Virginia & Washington.

If/when people who purchase these qualifying policies deplete their insurance benefits, they may then retain a specified amount of assets (usually equal to the face value of the insured’s contract) and still qualify for Medicaid, provided they meet all other Medicaid eligibility criteria. This is a dramatic difference from the current spend-down provision that reduces the client’s assets to 2,000 dollars before Medicaid eligibility begins.

Although opponents argue that this partnership program approach actually opens the door to more individuals qualifying for Medicaid while retaining more assets, proponents believe that the initial provision period they receive from LTCI and the time ‘cushion’ adequately compensate for this difference. Part of this argument in support of the program hypothesizes that many who utilize their LTCI will in fact recover before that time in which they would turn to Medicaid and be sheltered from the spend-down aspect and Medicaid parameters they would otherwise have faced. So far, the data from the original four states are inconclusive because the programs are still relatively new and few purchasers have begun to use the benefits. (Of the 172,477 initial contracts in the original four states, the number receiving partnership benefits is 1,209)*.

With the likely expansion of LTCI partnership programs across the county, consumer education is critical. Some vital issues include income eligibility requirements, functional eligibility and the ability to remain at home. This is where it is important to speak with a Long-Term care Specialist. It is important to address these relevant issues. Due to Medicaid’s income eligibility, some who have purchased or will purchase partnership policies may never qualify for Medicaid because their incomes are too high, even in retirement. Medicaid’s functional eligibility, or eligibility based on the insured’s functional capacities, may also be more restrictive than that of the partnership policy.

Finally the ability to remain at home is a major issue for most consumers, as Medicaid beneficiaries have no entitlement to continue to receive LTC services in their homes or in community-based settings, as provided for by their policy.
Therefore it behooves you as a client to educate yourself through a Long-Term care Specialist who understands what these products mean in providing for long-term care. A Long-Term care Specialist satisfies the Partnership Program training requirement and its continuing education. and understands the implications of these new programs, procedures and products.

Simplify your Long-Term care planning with Long Term Care Insurance Pros
To answer you immediate questions, just call 1-877-GO-4-LTCi (464-5824)

Tips for Getting Long-Term Care Insurance

Savings
Limiting your benefits can save you money. Accepting higher deductibles and limiting the length of time covered can substantially cut annual premiums. Few people need their benefits for more than five years.
Inflation
Don't skip inflation protection. Over time, unprotected benefits can shrink drastically in value and out-of-pocket expenses will soar. Inflation protection of 5% is recommended especially for Baby Boomers. Do your homework and speak with a Long-Term Care specialist.
Research your company and your agent. Consumer experts recommend that you select an agent who is specializes in Long-Term care planning and who sells policies for more than one firm.
Know your policy
Consumers often misunderstand what care is covered by their policy and what events trigger coverage. If you want your policy to cover in-home services and the cost of a nursing home, be sure it is spelled out.
Be careful
Be wary of pitches to change your policy -- it could waste all the money you've paid in premiums. There should be a good set of reasons to swap policies cautions Dane Petchul of Long Term Care Insurance Pros.

Median age for those seeking Long-Term care insurance is 58

The average age of people buying long-term care insurance benefits dropped below 60 for the first time after falling steadily for more than 10 years, a trade group said.

A study by the American Association for Long-Term Care Insurance showed that the average age of Americans buying insurance for home care and assisted living fell to 58 years old in 2007.

The average age has been on the decline. It’s down from an average of 61 years in 2005 and 69 years in 1995.The trend reflects a growing awareness of the importance of planning for health care and retirement, said Jesse Slome, executive director of the group.

More people have begun securing long-term care insurance in their 50s because that decade is “the sweet spot for long-term care planning,’’ when insurance costs are generally lower, Slome said. Insurers have also begun offering products that evolve coverage over time, a move that has attracted more baby boomers, he said.

About 8 million Americans now have long-term care benefits, according to the study. That’s up slightly from a year ago and about 60 percent higher than in 2000, when fewer than 5 million people had benefits for long-term care.

Long-Term Care insurance is made easy with LongTermCareInsurancePros.
For a No Hype, No Obligation consultation email dane@LongTermCareInsurancePros.com or call 949-854-3001 or 1-877-GO-4_LTCi (464-5824)

Boomers think they have Long-Term Coverage

Most U.S. baby boomers surveyed said they believed that Medicare or "other health insurance" will pay for their long-term care but are wrong.
The survey of 2,000 U.S. baby boomers ages 45 to 61, by StrategyOne for America’s Health Insurance Plans, found 54 percent of baby boomers said they think Medicare will pay for long-term care services, while 44 percent said they believe "other health insurance" will pay.
In reality, Medicare doesn't, cover long-term care indefinitely and Medicaid will cover these services but only after individuals to spend down nearly all of their assets, said Robert Moran, of StrategyOne."Baby boomers believe they have more coverage than they actually do, giving them a false feeling of financial preparedness to handle long-term care costs," Moran said in a statement.
The survey found that 30 percent of baby boomers think they have long-term care coverage, but the National Association of Insurance Commissioners says only some 5.2 million U.S. adults have long-term care insurance -- even if all those covered were boomers, which they are not, that would only account for 6.6 percent of the U.S. boomer population.

Simplify your Long-Term Care Planning with LongTermCareInsurancePros
For immediate attention contact a Long-Term Care specialist at 949-854-3001 or 1-877-GO4-LCTi (464-5824)

Long-TermCare Awareness Week November 4-10, 2007

The U.S. Congress proposed the Week of November 4-10, 2007 be declared Long-Term Care Awareness Week "urging the people of the United State to recognize such a week as an opportunity to learn more about the potential risks and costs...and the options available."
We're proud to support this important educational campaign.

• Make Long-term care part of your overall financial plan.
• Buy young to avoid the high cost of waiting
• Lock in your health and available good health discounts
• Discounts can help reduce the cost

The first step is in your hands
Getting the information you need to make an informed decision is a smart move. Waiting is never advantageous. There's no obligation, of course.
Contact LongTermCareInsurancePros at 949-854-3001
or 877-GO-4-LTCi (464-5824).
You will be in touch with a Long-Term Care Specialist at dane@LongTermCareInsurancePros.com

Make Long-Term Care Awareness Week the time you start planning.