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LTC Insurance Blog
Simplifying the process of understanding Long Term Care, and helping you decide if Long Term Care insurance is right for you.
What is the government doing to address Long Term Care issues?
The government, both state and federal, is sending a strong message that it will not pay for Long Term Care for most Americans.
The most recent example is the passage of the Deficit Reduction Act, which tightened the rules to qualify for Long Term Care assistance through Medicaid, the government welfare program. Additionally, Congress has funded the Own Your Future informational campaign about Long Term Care, has passed some tax incentives for those who purchase LTC insurance, and it is encouraging more “LTC Partnership” plans.
I’ve heard about the Own Your Future campaign. What is it?
It’s a state and federal government campaign designed to increase awareness about the need to plan for Long Term Care. Households with members between ages 45 and 70 are targeted to receive informational materials, including a Long Term Care Planning Kit and state-specific resources.
What is the Deficit Reduction Act?
The Deficit Reduction Act (DRA), signed into law in February 2006, reduces the government’s financial burden of providing medical as well as Long Term Care coverage by employing more rigid requirements to qualify for Long Term Care assistance paid for by Medicaid. Basically, the DRA mandates that all but the poorest populations in America pay for their own Long Term Care.
Will Medicare cover my Long Term Care needs?
Neither Medicare nor Medicare Supplemental Plans cover Long Term Care. These plans only pay for skilled medical rehabilitation in a nursing home over a limited period of time after a hospital stay, typically 3 – 4 weeks. They do not pay for custodial or intermediate care in that nursing home environment, nor do they pay for extended home care. According to the National Association of Insurance Commissioners, “You should not rely on Medicare to pay for your Long Term Care needs.”
Does Medicare cover my rehabilitation and Long Term Care should I need them?
Medicare may cover up to 100 days of medical rehabilitation in a skilled nursing home if your physician prescribes it. On average, Medicare pays between 3 - 4 weeks of rehabilitation in a nursing home. However,
Medicare will not cover your long-term personal and custodial care.
Doesn’t Medicaid cover Long Term Care needs?
Medicaid, a state/federal welfare program, provides benefits covering nursing home care and limited home care ONLY after your personal assets have been depleted.
Why can’t I use Medicaid to pay for my Long Term Care?
You can, but there’s a huge downside to relying on Medicaid.
Medicaid is a state/federal welfare program. Consequently, to qualify
for Medicaid, you must have (1) depleted most of your assets (2) directed most of your income toward your care and (3) require nursing home level services.
If you would like more information or a free Long Term Care quote comparison, give us a call at 1-800-432-2009.