Only problem is that Medicaid does have its limitations, and one area that is draining Medicaid of its precious resources is long-term care. In fact, based to the Centers for Medicare and Medicaid Services, in 2001, Medicaid paid for almost 40% of the annual long-term care bill in this country. So what is long-term care according to the definition put forth by Medicaid? It is generally custodial care that is provided when a person needs assistance for activities of daily living, which includes bathing, eating, dressing, continence, toileting and transferring. Skilled care on the other hand, which is paid for to some extent by Medicare, is for situations in which you are always expected in getting better as a result of the care. It is often referred to as short-term rehab, and includes IVs, administering medications, changing dressings, and physical and speech therapies. Once a patient’s progress stops, the skilled care reverts to custodial care. Medicare will not pay for long-term care if it is not accompanied by the need for skilled care, and so the problem falls on Medicaid to pay for the ongoing costs of custodial care. Although Medicaid will pay for long-term care, there  are lots of restrictions on the qualifications for help.

First and foremost, Medicaid is a program designed to help those who are impoverished. In order to qualify for long-term care assistance through Medicaid, a person who must spend practically all of his own possessions before Medicaid will begin picking the tab.  Medicaid, in general, is not set up to provide care in a home setting. Usually, the care must be given within a residential facility, meaning that a person has to give up much of his independence in order to qualify. Remember that much of the individual’s ability to control the kind of care recieved is also forgotten or lost because the state will determine where and how the care is administered since it is paying for the care. The skyrocketing costs of long-term care are placing many state Medicaid programs under extreme pressure, and much needs to be done to help make sure that this vital program for those who have few means will be able to continue to serve those who need it most. As a result, both state and federal governments are encouraging most Americans to take the responsibility for their own future long-term care needs. Getting more information on the important issues surrounding long-term care and how it affects us all is a good place to start.

Technorati Tags: adult day care, long term care, long term care insurance

Skilled nursing facilities are the good choice for old people who need this type of service, however, seniors should never be placed in a nursing home simply because there are no other options. On a more personal level, the law always provide for appropriate changes in a person’s home including the installation of bathroom handrails and other safety features. Home health aides and respite care are now under the Medicaid umbrella of covered services. There are already so many choices to make regarding long-term care, the passing of this law will enable you to make better and smarter choices that will really suit your needs! Most funding for adult day services is generated from participant fees, city government agencies and charitable sources.

Technorati Tags: adult day care, long term care, long term care insurance

That is why most individual LTCI policies actually cost less for relatively healthy applicants, the underwriting procedures in use effectively screen out most of those costly severe health cases. One of the ways that group LTCI companies hide or mask the increased cost of their policies is by not including an automatic inflation benefit as part of the premium. Sometimes they tell you that they are giving a 5% compound inflation protection, but they do it as something called a “Future Purchase Option.”  This means that they will come back every three years or so to make an offer based on an additional 5% compound increase in benefits. This is the least expensive way to buy LTCI initially because the inflation protection is not built into the premium. The problem is that it is the most expensive way to buy LTCI over the life of the policy because you are buying additional protection every three years at a later age. In any case, once you are paying for that additional protection at that later age instead of the age when you originally purchased the policy. So these kind of policies often wind up costing the policyholder twice as much or more over the life of the policy, as if they have just brought the automatic inflation protection built into the policy then. Another method that group policies use to lower premiums by providing less coverage is reducing the home care benefit to 50 to 75% of the daily benefit.

This may indeed lower costs, but it is not helping policyholders accomplish what they usually want most: to stay at homecare and remain as independent as possible for as long as they can. Of course, some group policies can be a very good value, but it always pays to compare them to individual policies using identical benefit features to make the comparison fair for long term care.

Technorati Tags: adult day care, hospice care, long term care insurance, senior care

These plans are offered in some parts of the country through private insurance companies, but are still part of the Medicare program. If you’d like to switch to a Medicare Advantage Plan, now’s the perfect time. Open enrollment for Medicare Advantage extends from January 1st through March 31st. Once you are eligible for a Medicare Advantage Plan if you currently have Medicare Part A or B. You will, however, need to see doctors and use hospitals within the plan, much like you would with an HMO. If you’d like to switch plans, keep in mind that you cannot drop Medicare prescription drug coverage. Once your existing plan has prescription drug coverage, then your new one needs to have it as well. For more information on the plans available in your area, visit Medicare’s web site or call 1-800-633-4227.

Your new plan should be effective on the first of the month after  your request is received. Still not sure what all the Medicare plans cover? Gilbert Guide lists all of the major types of insurance as well as what they cover. For a detailed explanation, then you can check out Gilbert Guide’s Medicare Explained or Senior Care Reimbursement Overview, which will show you where each type of insurance pays benefits.

Technorati Tags: adult day care, hospice care, long term care insurance, senior care

Care in a skilled nursing facility

Care in an assisted living facility

Home health care

Adult day care

Buying a LTCI policy gives the policy holder to select from the many options, such as the amount of the daily benefit, the number of years the policy will pay benefits, and, after the applicant qualifies for a policy, the number of days or months before the policy will begin paying benefits.  It’s very important to evaluate policies carefully to see which one offers the benefits you require with a premium that fits your budget. Policies differ in their benefits, contract conditions, deductibles and premiums.

It is also important to take into account the rising cost of home care. Be sure the LTCI policy gives inflation protection for benefits to increase as health care costs continue to rise. Policies are generally labeled according to the place in which benefits are paid.    Remember that homecare only policies only pay for care at home and in an adult day care or adult day health care facilities. Make sure the policy includes both types of day care.  Meanwhile, facility only policies pay for care in a skilled nursing facility and in an assisted living facility.  Comprehensive policies pay for care in a skilled nursing facility, assisted living facility, adult day care or adult day health care facility, and at home.  Since the LTCI claims are always paid within many years after the purchase of the policy, it is imperative to check the following:  Financial strength of the company. The industry’s major rating services are A.M. Best , Duff and Phelps, Moody’s, Standard and Poor’s and Weiss Ratings .   Reputation and claims-paying history of the company.

You can contact the State Insurance Department for more information on specific private insurance companies. Check here for more listings information for each of the state’s insurance information. Applicant must be healthy at the time of application   Each insurance company has individual requirements and/or limitations   Not sure when is the right time to buy an LTCI policy? Or how to assess what you will need from a policy? Visit our Expert Column on Financing Long Term Care to find out more.

Technorati Tags: adult care, adult day care, long term care

Nowadays, most of the tax deduction benefits go to the employers and the self-employed. If you don’t fall into that category, the Congress will require you to itemize your LTCI policy premiums along with all other health expenses during the year. Anything over 7.5% of your adjusted gross income can be used as a deduction. If you have a health savings account (also known as an HSA medical plan), however, you may be able to deduct more even if you are an employee or retired person.  If you are a sole proprietor, a partner, or own an S corporation or LLC, even if it is just a small business, you can take away that 7.5% threshold and instead deduct premiums up to a certain maximum that increases with age. The tax schedule that lists this table for qualified deductions is available for download on my Web site. If you would like to check out and learn more about the specific deductions that may be available, you can find it at http://www.duanelipham.com/tax_summary.pdf.

If you own a C corporation, you are fortunate enough to be able to declare the entire premium as tax deductible. The amount of money you will save depends to a large degree on your tax bracket. Many self-employed folks in the 30% tax bracket who use the tax schedule mentioned above may be able to save 20% or more of their long term care insurance premiums in tax benefits. For those who are able to deduct the entire premium, even greater savings can be realized. Of course, it is wise to consult your accountant or tax attorney to be sure of the tax benefits that may apply to you specifically. The tax benefits that surround LTCI can save you money in the long run, and we all know what the home health care benefits can save: in some cases, your life.

Technorati Tags: adult day care, hospice care, long term care insurance, senior care

The vast majority of policies sold today already have those provisions.  However, there is one requirement that contributes more than almost any other to qualifying a LTCI policy for the partnership program. It must have the age-appropriate inflation protection benefit. These requirements are as follows:  Those who are aged 60 or younger need to have ” compound annual inflation protection. ” Those at least 61 but younger than 76 must have ” some level of inflation protection. ” Those by the age of 76 or older must be offered an inflation protection option but they are not required to purchase that option. Now why is inflation protection given to such prominence in partnership-qualified policies? The answer is that if partnership-qualified policies don’t have inflation protection, the purpose of a partnership program may be defeated. This is because the whole purpose of the partnership program is to help relieve the financial burden of long-term care costs from the state Medicaid systems.

If a consumer buys a LTCI policy but does not allow it to keep pace with the rising costs of assisted care, the insufficient benefits will be more likely to force the policyholder to turn to Medicaid anyway. With very few assets left, the state will have to pick up the rest of the bill for this individual and the original intent of the program is defeated.  A very important lesson that can be learned is that inflation protection is a vital component of any LTCI policy;whether partnership-qualified or not.

Technorati Tags: adult care, adult day care, long term care

Most of the insurance companies that sell these long term care plans have been accused of several bad practices, including:

Deceptive marketing strategies that don’t make a clear distinction between Medicare and Medicare Advantage  Targeting of uninformed seniors in low-income areas by pushy agents with hard-sell techniques  Outsourcing customer service to overseas call centers, whose employees have substandard knowledge of the complex Medicare system.  Certain insurance agencies with Medicare Advantage Plans usuallu undergo a greater amount of scrutiny than they have in the past, and it seems to be effective and helping them a little. Kerry N. Weems, the acting administrator of the Centers for Medicare and Medicaid Services, says, ” There are substantially fewer violations, and those violations are of substantially lower severity than in previous marketing periods. “

Medicare Advantage programs can help some of the customers to finance their long term care, however, some of these plans are not for everyone. There are some important factors that need to be considered before signing up for any type of Medicare Advantage Plan. Here are a few of the most essential issues:
Make sure your doctor(s) and local hospital are within the insurance company’s network of providers.  Medigap policies become null and void once you are enrolled in a Medicare Advantage Plan. If you already have a Medigap policy, you will need to cancel it once the coverage begins with a Medicare Advantage Plan to avoid paying twice.

Remember that Medicare Advantage plans vary greatly. You are giving up all rights to your existing Medicare policy, so remember to pick a plan that will meet your future continuous care needs as well as your current ones.  Keep in mind to read the fine print. This is an important decision, so don’t be in a hurry!  We live in a society where the buyer must beware. Call your parents tonight! Make sure that they know about the issues surrounding Medicare Advantage Plans. That phone call could be the one thing that saves them from making;or worse yet, being pushed into;a decision that isn;t right for them. You don;t even want to think about the alternative!

Technorati Tags: adult care, adult day care, long term care

1.Care in a skilled nursing facility

2.Care in an assisted living facility

3.Home health care

4.Adult day health care

When buying a LTCI policy, it allows the policyholder to select from many options, such as the amount of the daily benefit, the number of years that the policy will pay benefits, and, after the applicant qualifies for a policy, the number of months or days before the policy will begin paying benefits.

It is imperative to evaluate the policies carefully to see which one offers the benefits you require with a premium that will fit your budget. Policies differ in their benefits, contract conditions, deductibles and premiums. It is also important to consider the rising cost of health care. Be sure the LTCI policy provides inflation protection for benefits to increase as health care costs continue to rise. Policies are labeled according to the place in which their benefits are paid.

Homecare-only policies pay for care at home and in an adult day care or adult day health care facilities. Make sure the policy includes both types of day care. Facility-only policies pay for care in a skilled nursing facility and in a good assisted living facility. Comprehensive policies pay for care in a skilled nursing facility, assisted living facility, adult day care or adult day health care facility, and at home.

Since LTCI claims are always paid many years after the purchase of the policy, it is imperative to check the following:  The financial strength of the company. The industry’s major rating services are A.M. Best , Duff and Phelps, Moody’s, Standard and Poor’s and Weiss Ratings . Reputation and claims-paying history of the company. Contact your State Insurance Department for information on specific private insurance companies.

The applicant must be healthy at the time of the application. Each insurance company has individual requirements and/or limitations. Not sure when is the right time for you to buy an LTCI policy? Or how to assess what you will need from a policy? Visit our Expert Column on Financing Long Term Care to find out more.

Technorati Tags: adult care, adult day care, long term care

But take note that there are two important reasons wht LTCI costs as much as it does. One is that the costs of care in this industry are rising more than 5% annually on the average, and have done so consistently for several years now. For the most part, average inflationary costs for the rest of the economy averages around 2–3% a year. However, that is usually not the case with home health care, especially long-term care. To put those figures into perspective, a 5% inflationary measure means costs double every fifteen years or so. So if facility costs are $150 a day in your area today, in fifteen years they will most likely be around $300 per day. And in fifteen more years, that figure balloons to $600 a day. The questions that each person must ask themselves about preparing for that kind of expense are whether they have the funds available now to pay for their care, and whether they will have more funds in the future to make up for the increases caused by inflation? Will those funds be liquid enough to be accessed quickly and without major financial loss to necessary retirement income?

The second reason that LTCI costs as much as it does is that it is one of the most commonly used forms of assisted care insurance that you can buy. A Metlife Mature Market study was made in 2000 revealed that out of 1,000 people age 65 and older, only five will ever lose their home to a fire. Only 70 will experience an auto accident that requires them to file a claim on their auto insurance. But in the same age group, 600 will require some form of long-term care. It saddens me when I see so many people working so hard to put away money for their retirement years, and they do not understand the single greatest risk to their retirement income. I encourage everyone to take a hard, realistic look at the rising costs of long-term care and start as early as possible to prepare to meet the financial challenges ahead.

Technorati Tags: adult day care, hospice care, long term care insurance, senior care