President Barack Obama is backing efforts to create a new government program to provide long term care insurance as part of the broader health care overhaul.
The voluntary insurance program — sponsored by Massachusetts Democratic Sen. Edward M. Kennedy — would pay a modest daily cash benefit of at least $50 that people could use for in-home services or nursing home bills.
Health and Human Services Secretary Kathleen Sebelius said in a letter to Kennedy that the administration supports the program because it would help elderly and disabled people stay in their own homes. But the Congressional Budget Office is questioning the program's long-range solvency.
In a letter to Kennedy released Tuesday, Health and Human Services Secretary Kathleen Sebelius said that Obama believes the long-term care program is an "innovative" idea that should be "part of health reform."
"Enactment of this important legislation would expand resources available to individuals and families to purchase long-term services and supports to enable them to remain in their own homes in the community," Sebelius wrote.
Senator Kennedy's idea, known as the Community Living Assistance Services and Supports Act or CLASS Act for short envisions workers and their spouses enroll in the long-term care insurance program for a monthly premium of $65. People would have to pay premiums (become vested) for at least five years before they could claim benefits and they would have had to be working at least three of those years.
Beneficiaries would qualify for assistance if become disabled and unable to perform at least two or three basic activities such as bathing or dressing.
Because of the five-year vesting period for benefits, congressional budget analysts estimate the program would run a fat surplus in its first 10 years. Soon after that, it would get swamped by claims.
To keep the program financially solvent through 2050, the government would have to raise premiums significantly, to $85 a month, and keep benefits at the $50 daily minimum, the budget office said. And even with those measures, the program might still increase the deficit.
It is important that long-term care is being addressed, but how realistic is the government when in 2009 they are putting on the table a $50/day benefit to help cover expenses in the home. At 2009 rates, the average caregiver has an hourly rate of $18-20/hour. Fast forward 10 years and this $50/day benefit will not provide you with 2 hours of care.
Is this really solving your Long-Term Care problem? Is it good planning to wait to see what the government will sign into law?
Consult a Long-Term Care Specialist to see what your options are TODAY!
Tuesday, July 7, 2009
Sunday, June 7, 2009
Long-Term Care Planning Helps Manage Retirement
Retirement today can last for many more years than it did in the past. In the old days, retirement lasted 7-10 years, so the cost of health insurance was more manageable. Retirement can last decades especially with the help of medical science and the new prescription drugs which keep us alive longer. But, living longer comes with a price.
Health care can cost a retiree about $250,000 during their retirement years. This is for the medical expenses such as office visits, prescriptions and surgery. This does not take into account the need for long-term care.
Even though Congress is discussing a limited national long-term care program, it does not come close to offering comprehensive care over a number of years, in the setting of your choice.
The cost of long-term care insurance varies significantly from one insurer to another. That is why you want to talk to a knowledgeable long-term care specialist with access to more than one company.
Find out more about Long-Term Care at LongTermCareInsurancePros
Health care can cost a retiree about $250,000 during their retirement years. This is for the medical expenses such as office visits, prescriptions and surgery. This does not take into account the need for long-term care.
Even though Congress is discussing a limited national long-term care program, it does not come close to offering comprehensive care over a number of years, in the setting of your choice.
There is an underlying message:
- You will live a long time.
- You will probably need care before you pass away.
- This need for care may last several years.
The cost of long-term care insurance varies significantly from one insurer to another. That is why you want to talk to a knowledgeable long-term care specialist with access to more than one company.
Find out more about Long-Term Care at LongTermCareInsurancePros
Thursday, June 4, 2009
Confidence in Long-Term Care Insurance Act of 2009
Chairman Herb Kohl (D-WI) has introduced a bill S.1177, the Confidence in Long-term Care Insurance Act, which will include curbs on premium spikes, ensure that agents receive training and make it easier for consumers to compare policies.
This bill aims to improve consumer protections for purchasers of long term care insurance and suggests that there is a profound recognition by the federal government of the important role of private long-term care insurance.
The State Partnerships for Long-Term Care Program, a program which allows individuals to purchase a long-term care insurance policy and qualify for Medicaid benefits without depleting all of their assets. This program is a win-win as consumers are afforded a first layer of protection through their private long-term care insurance policy, enjoy the flexibility and choice it offers, backed by the state Medicaid (MediCal, in California) program should they exhaust the benefits of their private long-term care insurance policy and otherwise qualify for Medicaid benefits.
This new legislation will provide a uniform way of handling claims, transferring policies between states and increasing premiums. Long-term care insurance should reflect standards set by the National Association of Insurance Commissioners.
A long-term care specialist has the additional education and training (LTCP, CLTC) necessary to assist you in your long-term care financing, planning and insurance.
What is Long-Term Care?
This bill aims to improve consumer protections for purchasers of long term care insurance and suggests that there is a profound recognition by the federal government of the important role of private long-term care insurance.
The State Partnerships for Long-Term Care Program, a program which allows individuals to purchase a long-term care insurance policy and qualify for Medicaid benefits without depleting all of their assets. This program is a win-win as consumers are afforded a first layer of protection through their private long-term care insurance policy, enjoy the flexibility and choice it offers, backed by the state Medicaid (MediCal, in California) program should they exhaust the benefits of their private long-term care insurance policy and otherwise qualify for Medicaid benefits.
This new legislation will provide a uniform way of handling claims, transferring policies between states and increasing premiums. Long-term care insurance should reflect standards set by the National Association of Insurance Commissioners.
A long-term care specialist has the additional education and training (LTCP, CLTC) necessary to assist you in your long-term care financing, planning and insurance.
What is Long-Term Care?
Tuesday, May 26, 2009
Life comes in Phases...It is Never Too Early for Long-Term Care Planning
We can look at our lives in Phases.
Phase 1- This is the phase where you are working and accumulating wealth with your paychecks. You are making choices about what you do with your money.- Phase 2- With the money you earned or are earning, you either have or are building assets.
- Phase 3- The choices you made or are making throughout your life determine the enduring phase of your life- how will you live out your life, can you continue to enjoy your lifestyle, and what legacy will you be leaving.
Long-Term care planning and insurance can help protect you in each phase of your life. It will provide you with the comfort of knowing that your assets-and those of your loved ones- are protected from unforeseen events.
Planning in the early Phases of your life while you are younger, healthier and more likely to be insurable will save you substantially on your premium payments. Why? When it comes to buying long-term care insurance, good health is a real advantage.
I look forward to helping you with your Long-Term Care Planning. Call me at 949-854-3001 or email me at dane@LongTermCareInsurancePros.com
Friday, May 22, 2009
Long-Term Care Insurance and The Procrastination Game
Why is procrastination so closely associated with long-term care planning and insurance?
Nobody ever wants to imagine themselves in a situation where they are going to need help with the activities of daily living.
The activities of daily living are really the activities we do every day and take for granted. They are simple tasks like eating, dressing and getting in and out of a chair. No one wants to picture themselves in that situation. So, what does one do….Procrastinate.
There is way of reducing the anxiety that is produced when approaching the subject of Long-Term Care planning and insurance. It is important to consult and get the information from a Long-Term care specialist with designations in long term care financing and planning (LTCP and CLTC).
The information will be presented to you in a manner that you will be able to understand and ask questions as it pertains to you and your family. Long-term care insurance is not a “one size fits all” product. It is important for you and the long-term care specialist to communicate what is important to you when designing a plan. The long-term care specialist will also be honest and forthright and telling you if this type of coverage makes sense for your individual financial situation.
Procrastination can be the most costly enemy when it comes to purchasing long-term care insurance. As you age, the premiums go up and as you age your health begins to decline. So, the bottom line procrastination can increase your premiums or you may not qualify for the coverage due to your health.
For more information and a free, no obligation quote comparing all the top carriers call 877-GO-4-LTCi. or visit LongTermCareInsurancePros
Nobody ever wants to imagine themselves in a situation where they are going to need help with the activities of daily living.
The activities of daily living are really the activities we do every day and take for granted. They are simple tasks like eating, dressing and getting in and out of a chair. No one wants to picture themselves in that situation. So, what does one do….Procrastinate.
There is way of reducing the anxiety that is produced when approaching the subject of Long-Term Care planning and insurance. It is important to consult and get the information from a Long-Term care specialist with designations in long term care financing and planning (LTCP and CLTC).
The information will be presented to you in a manner that you will be able to understand and ask questions as it pertains to you and your family. Long-term care insurance is not a “one size fits all” product. It is important for you and the long-term care specialist to communicate what is important to you when designing a plan. The long-term care specialist will also be honest and forthright and telling you if this type of coverage makes sense for your individual financial situation.
Procrastination can be the most costly enemy when it comes to purchasing long-term care insurance. As you age, the premiums go up and as you age your health begins to decline. So, the bottom line procrastination can increase your premiums or you may not qualify for the coverage due to your health.
For more information and a free, no obligation quote comparing all the top carriers call 877-GO-4-LTCi. or visit LongTermCareInsurancePros
Wednesday, May 13, 2009
Long-Term Care Insurance-Should I Self-Insure?
A common question I get in the long term care insurance world is: "Should I just self insure?"
The answer is simple, just look at the wealthiest people in the world and you will find they are insured to the max most of the time. The reason being it's better to spend pennies to protect dollars.
According to the U.S. Department of Health and Human Services, at least 70% of people over age 65 will need some long-term care services at some point in their lives. This underscores how financially vulnerable people will be without a carefully considered Long-Term care plan.
Long term care insurance is a smart idea simply because people are living longer these days and the potential risk is $100K/yr in many areas of the country.
Preparing for the potential need for LTC clearly makes sense, especially if it can help protect existing assets at the same time. Even if a particular individual could afford to self-fund a private room in a nursing home at $74,825 per year, the question remains–does that really make the most sense? Or is it more sensible to leverage those assets so the individual can enjoy them by passing them on to beneficiaries or to a favorite charity?
We work with all the top carriers so visit us today for your free long term care insurance quotes. http://www.longtermcareinsurancepros.com/
The answer is simple, just look at the wealthiest people in the world and you will find they are insured to the max most of the time. The reason being it's better to spend pennies to protect dollars.
According to the U.S. Department of Health and Human Services, at least 70% of people over age 65 will need some long-term care services at some point in their lives. This underscores how financially vulnerable people will be without a carefully considered Long-Term care plan.
Long term care insurance is a smart idea simply because people are living longer these days and the potential risk is $100K/yr in many areas of the country.
Preparing for the potential need for LTC clearly makes sense, especially if it can help protect existing assets at the same time. Even if a particular individual could afford to self-fund a private room in a nursing home at $74,825 per year, the question remains–does that really make the most sense? Or is it more sensible to leverage those assets so the individual can enjoy them by passing them on to beneficiaries or to a favorite charity?
We work with all the top carriers so visit us today for your free long term care insurance quotes. http://www.longtermcareinsurancepros.com/
Saturday, May 9, 2009
A Gift for Mother & Father-Long-Term Care Insurance
A great gift for Mother (and Father) is Long-Term Care insurance. However, you may want to wait and give it to them during the year, but not directly on Mother's or Father's Day.
On Mother's Day and Father's Day , give your parents what they want.
On Mother's Day and Father's Day , give your parents what they want.
- A family get-together
- A nice dinner out or a family Bar B Q
- Quality time spent with children and grandchildren
- Hugs and Kisses
Then, during the year it is time to broach the subject of long-term care financing and planning. You should do this because you love your parents and want them to be able to have the best care available to them when they will need it. It isn't selfish to suggest that the subject of long-term care be brought up. It is best to discuss this early before a long-term care event occurs and puts the family in crisis mode.
Siblings should come together with a good long-term care plan for their parents. As a loving gift to your parents, you may want to pay for the premiums for long-term care insurance or pay a portion of the premiums.
Long-term care insurance is a gift of love. It is really a gift that shows you care.
- It eases the burden from your parents.
- Having long-term care insurance means that your parents will have the choice of home health care, assisted living or privately funded nursing homes.
- They will have choices.
- It will provide the family with "peace of mind."
Free, No Obligation Family Consultation is the best way to start your Long-Term Care Plan
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