|
Part 7: “It May be Time to Shop for Long-Term Care Coverage”
Originally published February 7, 2010 in the Stamford Advocate
Copyright Julie Jason 2010. All rights reserved.
Long term care insurance is the only type of insurance that will cover long stays in nursing homes. Medicare won’t. And neither will your health care policy.
Medicaid will, but only if you are virtually destitute, as we’ve been discussing over the last few weeks.
People who don’t buy long-term care insurance self-insure against the risk.
They can afford the cost of care, which in lower Fairfield County, is running at $130,000 to $160,000 a year ($356 to $438 a day), according to Susan Welsh, Director of Admissions, Nathaniel Witherell Rehab and Nursing Center of Greenwich. Statewide, the average cost for a semi-private room is $119,000 a year ($326 a day), according to Connecticut’s Office of Policy and Management (OPM) and the average stay is 2-1/2 years ($297,500).
Others need to seriously consider shopping for a long-term care insurance policy.
Do yourself a favor and start your search with Connecticut Partnership policies.
Why? One big benefit is Medicaid Asset Protection. If you buy a policy with $200,000 of benefits and use them all up, Connecticut will not require you to spend down $200,000 of your assets before you are eligible for Medicaid.
How much would such a policy cost?
That depends on your age, your health, and the specific features of the policy.
For example, a healthy 60 year old male might pay about $4,700 a year for a daily benefit of $330 for a three year policy. This policy has a 5 percent inflator built into it, so the benefit increases over time. And, the policy payments start after a 90 day “elimination period,” explained Richard Levine of LTC Financial Partners of Simsbury. (If a couple buys the policy, there are some savings. Each person could pay about $4,000 or $8,000 for the couple.)
You need to be in good health to qualify for such policies. The younger you are, the less expensive the premiums.
If you are a Connecticut resident and buy such a policy, you may wonder whether your assets will be protected if you move to another state.
The answer is “yes,” assuming the state you move to participates in the National Reciprocity Compact (NRC) and you qualify for Medicaid under that state’s requirements.
In that case, you’ll be eligible to receive dollar-for-dollar Medicaid Asset Protection just as you would if you apply to Connecticut’s Medicaid program, explained David Guttchen, Director of the Connecticut Partnership for Long-Term Care.
Which states participate?
Florida, Colorado, South Carolina, to name a few. For more, log onto the Long Term Care Partnership Program’s website at http://www.dehpg.net/ltcpartnership/StateReciprocity.aspx) or call the Connecticut Partnership at 1-800-547-3443.
“We strongly encourage individuals to explore private long-term care insurance,” said Guttchen, “and to start that planning at as early an age as possible.”
To start your research, you’ll want to refer to the many solid resources available through the Connecticut Partnership. Call 1-800-547-3443 for a free resource called “Policy Comparisons,” a publication that compares Connecticut Partnership Long-Term Care Insurance Policies. Ask for the Consumer Packet. Or go online to http://www.ct.gov/opm/cwp/view.asp?a=2995&q=383424.
nother excellent source is a free 45 page booklet called “A Shopper’s Guide to Long-term Care Insurance,” available from the National Association of Insurance Commissioners. NAIC (www.naic.org) can be reached by calling 816-842-3600.
For a good description of how Medicaid Asset Protection works, you’ll want to read OPM’s “Planning Today for a Secure Tomorrow,” at http://www.ct.gov/opm/cwp/view.asp?a=2995&q=383424&opmNav_GID=1814#Medicaid.
Click here to read Part 8 on how to find an elder law attorney.
|
|