The Buzz About Long-Term Care

Senator Herb Kohl (D-Wis) is the chairman of the Aging Committee. As the chairman of the Aging Committee, he has gained a familiarity with many of the pressing health care issues that affect seniors and all Americans. He has been pushing for health reform to include improvement to our long-term care system.

Our nation’s population is aging at an unprecedented rate, and with every passing year, more elderly Americans find themselves in need of long-term care.

Senator Kohl feels that we must protect those consumers who are making an effort in advance to plan for the costs of their own long-term care. Partnership programs have been initiated in many states encouraging residents to purchase Long-Term Care insurance in an attempt to lessen the burden of Medicaid (MediCal) costs on state budgets.

Sen. Edward Kennedy’s (D-Mass.) Community Living Assistance Services and Supports Act (CLASS) supports a $50/day benefit for long-term care after being vested in the system for 5 years. $50/day is a start but, hardly enough to cover the costs. Senator Kennedy envisions a whole new market of supplemental LTCi policies that consumers would be urged to buy in order to complement the bill’s coverage.

Planning ahead while younger and healthier is key to keeping your premiums reasonable. I advise clients to get something in place that is affordable while the discounts are still available.

As time goes I will keep you posted on the options the government is considering with the growing long-term care issue.

In the meantime, if you are between the ages of 45-75, it is wise to not wait for the government, but learn what your options are and get a long-term care plan in place.

By putting a plan together you will know where the money will come from when long-term care is needed.