I think the government is not trying too hard to come up with a new program that can help people pay for long-term care. They've come up with a program CLASS Act a few years ago and it was too ambitious to work. A lot of people were disappointed and I think some also got frustrated with the way the government is working.
People are left with government programs such as Medicare and Medicaid that barely satisfy a person's long-term care needs. The former doesn't cover the core of long term care while the latter requires people to spend down their assets first before they can qualify for benefits.
Long-term care insurance is considered as the best payment option. It is a bit pricey but there ways to bring the premiums down like by purchasing early, creating a smaller policy and through group or couple discounts. People who don't find traditional long-term care insurance can resort to the said combination products if they want to protect themselves from the high cost of long term care.
I have seen hundreds of my long-term healthcare insurance clients go on claim w/ no problem. They have received hundreds of thousands of dollars for their LTC expenses. I am so sorry you had the experience you did w/ that particular policy. I have not had a rate increase on either of the 2 LTC policies I sold to myself in 1996 and 2003. My 1995 and earlier clients have gotten one 8 to11% increase on their pre-HIPAA policy series, and we may see increases soon on some from the early 2000's. Each carrier has its own rate increase (or lack thereof) history. I am responding w/ these facts because I would hate to see folks not protect themselves from the emotional and financial drain of having a need for long-term healthcare w/ the most cost effective means = LTC insurance. The only alternatives to being insured for a long-term healthcare issue are to rely on family/friends to do the caregiving, pay out of pocket for help or private facilities, or be on Medicad in a nursing home. Cost of care is $3000 to $15,000 a month, doubling every 15 years, and we have a 70% probability to be ill and need long-term healthcare after 65. We do not have any other alternatives. I tell buyers to find something they think is affordable now,as well as if it is more down the line. I worked in nursing homes and the 'county poor farm' in the 70's. Insured people are much more likely to stay home. My clients have even recovered from some of their disabling conditions. By protecting family from the burden of 24/7 caregiving, long-term care insurance is worth whatever it costs--now or down the line.
To Barbara TC - I kept my monthly premium the same (nearly $180) and lowered my inflation rate to 2%. When they increase the premium again, and I'm SURE they will, I will drop the coverage all together. I also paid extra to be able to have the insurance maintained if I dropped it, at least the amt I've paid in. These insurance cos. knew what they were getting in to. They have experts & consultants who advise them on these things. There's no way they are surprised by the no. of people who are old and having to go into assisted arrangements. Duh. They get you into the policy and then increase the premium by huge percentage after 5 yrs. It definitely could have been foreseen. They offer relatively low initial premiums to suck you in, then raise them astronomically after 5 yrs. Five yrs seems to be the magic mark.
Girlhart-given the 70% odds that you will actually be able to use your policy one day, you may want to keep what you have. If the rate increase makes it unaffordable today, I would recommend changing the benefit multiplier, NOT the inflation. You have a while to build up that benefit, and to limit it w/ 2% less growth it at this point could put you in co-insure mode right away later. The carriers are scrambling to pay all their current claims in this very low interest environment no one could have foreseen. Low interest = need to raise premium to pay claims and be there when you need your claim paid. By pivotting on the multiplier, you are saving your daily payout for the higher costs of care later. Unfortunately, the cost of care is going up faster than regular goods. You were wise to get insured when you did. Today's rates are much higher. Talk to an LTC specialist from AALTCI.org to make sure you understand your options. Even with a shorter plan, you will be better off than w/ no plan at all..
I bought LTC insurance 5 yrs ago via my employer. I had just educated myself on it as a result of my parents' LTC policy premium being jacked up 66% after 5 yrs (Bankers Life & Casualty Co.). I specifically asked about that when I went to information session where I work. They gave some lame reassurance. I pay $170/mo for my LTC insurance for the past 5 yrs. I am 59 yrs old. I rec'd a letter recently notifying me that my premiums were going to increase about 55%!!! (My LTC insurance co. is John Hancock.) This is crazy! I can keep my current premium amt. if I lower my inflation protection from 5% to 2%. Puhlease!! What are they going to come up with after 5 more years??? Something has to be changed with this system! So many baby boomers are going to live for eons but need care, and not have enough money to pay for their own rent in these Assisted Living or Memory Care facilities. The insurance co's get approval from the State to jack up the premiums by those huge percentages. There's nothing the consumer can do about it.
This article is everything to me! I was born in '53 and mom in '24. I am being totally ruined and bringing down my spouse with me (and his grandkids need help with college money.) He has a single mom born in '32 on the fringe of welfare. What to do? I have not gone to church because we need to give our support to our elders, every dime! I wear jeans and t-shirts.
I wish the people complaining about illegals taking your jobs would educate themselves. Exactly what kind of jobs do you think they are taking? Low end jobs where they don't get insurance or benefits or enough to make a good living. Jobs that legals do not want or even if they got, they could not afford to raise a family. Companies complain that they don't want to have to pay health insurance benefits to employees b/c too costly. Look at the aides who are working in nursing homes and home health agencies that many complain can't speak english. That's b/c they (including the legal immigrants) are the only ones willing to take these jobs, where they have to travel around to people's homes, paying their own gas, no benefits, low pay. Do you really think if there were good old US perfect speaking english us citizens applying for these jobs, these places would be hiring them? These employees usually don't have workers unions to advocate for them. Businesses don't like unions. Back to this original topic: I don't see long term care as a solution for those of us caring for people now who will need long term care. Not only for cost reasons but when we get to the point that we need it, so will everyone else and those companies will fall apart like the home insurance companies when hit with several hurricanes, could not pay out claims. Also, there will be a shortage of available workers (since we will have chased away all the "illegals". The solution: We need to start thinking that all govt programs are not bad. If, we start diverting medicaid funds from nursing homes for those who don't really need nursing home care, then this means more jobs in the community for the home health care industry, savings since care in home may result in less need for hospitalization (nursing homes are notorious for dumping patients in hospitals at a moments notice for things that are either caused by their lack of care or that could be handled in the nursing home. Businesses should get grants and tax breaks for building good alternative housing for future elders needs - like communities where caregivers can rent or buy living facilities set up for caregiving families with a day program on the grounds, visiting nurses. I'm not taking about assisted living but places for whole caregiving families to live and get support. When no longer needed the caregiver can move out or remain as an employee, opening their homes to those w/o families who need caregiving. We better start thinking differently if we want a decent aging enviornoment for ourselves. Or maybe we should start builiding nursing home and assisted living facilities in places like Haiti and ship our elderly there so the illegals won't need to come here since they will have jobs in their own country and our aging population will get the care they need. (there are so many people in nursing homes and assisted living now who never get visits anyway, they might as well be in Haiti).
The media does a lot to sway public opinion. Under some circumstances it can even direct us to prejudicial thinking on a grand scale. As we re-program information we have received others are reduced to mere objects on a screen. Every person now has similar characterstics that we have assigned to him or her. There is no feeling left, they are not human beings and all that is left about them is what's in our heads.
Why are we allowing all the illegals to come in and take American Jobs? Also the ones that do not find jobs according to stats go on our welfare system and SS that we are having to pay for. I have no objection to educated legal immigrants coming to our country through the proper steps and education and becoming citizens. Not illegals and people who really hate us and then get into our country to bring it down. I want my grandchildren to grow up speaking English and being Americans with respect for our country and history. We could never run across the Mexican or any South American country and not be imprisoned or killed. The social security and welfare for our citizens is being given away by this administration from what I read and hear on TV.
In Canada the rule is everyone's tax is based on a percentage of his or her declared income. No excemptions. It has been said that nations will be judged on how well they cared for their poor and aged.
ok lets put it this way I am young and in my mid 30's taking care of my husband who is nearing his 50th bday in a few more years but I am also raising 2 children at the same time. How can they not focus on the home health care because that is where family comes in that does care for their uncles, aunts, grandparents etc come in. Many of us; have sacrificed a normal life to ensure that our spouses etc get what they want. I work and earn money part time as his caregiver but I also have to get a second job but that takes time away from my children growing up in years and going to school in a system created by the govt such as the healthcare system that is completely and utterly fucked over. How are we suppose to survive and how are they suppose to make it without us. I still see them not keeping jobs in our country and i see us being strapped paying for wars we started and still attacking those of us that live below the poverty line and honestly do not give a shit. seriously when and what are these changes going to take place and help those that really need help will lose out. i mean we are on the front of the battle line just like the doctors and nurses who have to suffer giving us sub standard care in the first place because they cannot get their shoes tied right at all in the first place. Candidates for presidency not all of your american citizens are not stupid even the ones that are really poor.
11 Comments
First Oldest
First
Affording Long-Term Care: The 2016 Election’s Forgotten Issue
People are left with government programs such as Medicare and Medicaid that barely satisfy a person's long-term care needs. The former doesn't cover the core of long term care while the latter requires people to spend down their assets first before they can qualify for benefits.
Long-term care insurance is considered as the best payment option. It is a bit pricey but there ways to bring the premiums down like by purchasing early, creating a smaller policy and through group or couple discounts. People who don't find traditional long-term care insurance can resort to the said combination products if they want to protect themselves from the high cost of long term care.
I worked in nursing homes and the 'county poor farm' in the 70's. Insured people are much more likely to stay home. My clients have even recovered from some of their disabling conditions. By protecting family from the burden of 24/7 caregiving, long-term care insurance is worth whatever it costs--now or down the line.
The carriers are scrambling to pay all their current claims in this very low interest environment no one could have foreseen. Low interest = need to raise premium to pay claims and be there when you need your claim paid.
By pivotting on the multiplier, you are saving your daily payout for the higher costs of care later. Unfortunately, the cost of care is going up faster than regular goods.
You were wise to get insured when you did. Today's rates are much higher. Talk to an LTC specialist from AALTCI.org to make sure you understand your options. Even with a shorter plan, you will be better off than w/ no plan at all..
Back to this original topic: I don't see long term care as a solution for those of us caring for people now who will need long term care. Not only for cost reasons but when we get to the point that we need it, so will everyone else and those companies will fall apart like the home insurance companies when hit with several hurricanes, could not pay out claims. Also, there will be a shortage of available workers (since we will have chased away all the "illegals". The solution: We need to start thinking that all govt programs are not bad. If, we start diverting medicaid funds from nursing homes for those who don't really need nursing home care, then this means more jobs in the community for the home health care industry, savings since care in home may result in less need for hospitalization (nursing homes are notorious for dumping patients in hospitals at a moments notice for things that are either caused by their lack of care or that could be handled in the nursing home. Businesses should get grants and tax breaks for building good alternative housing for future elders needs - like communities where caregivers can rent or buy living facilities set up for caregiving families with a day program on the grounds, visiting nurses. I'm not taking about assisted living but places for whole caregiving families to live and get support. When no longer needed the caregiver can move out or remain as an employee, opening their homes to those w/o families who need caregiving. We better start thinking differently if we want a decent aging enviornoment for ourselves. Or maybe we should start builiding nursing home and assisted living facilities in places like Haiti and ship our elderly there so the illegals won't need to come here since they will have jobs in their own country and our aging population will get the care they need. (there are so many people in nursing homes and assisted living now who never get visits anyway, they might as well be in Haiti).
How can they not focus on the home health care because that is where family comes in that does care for their uncles, aunts, grandparents etc come in. Many of us; have sacrificed a normal life to ensure that our spouses etc get what they want. I work and earn money part time as his caregiver but I also have to get a second job but that takes time away from my children growing up in years and going to school in a system created by the govt such as the healthcare system that is completely and utterly fucked over. How are we suppose to survive and how are they suppose to make it without us. I still see them not keeping jobs in our country and i see us being strapped paying for wars we started and still attacking those of us that live below the poverty line and honestly do not give a shit. seriously when and what are these changes going to take place and help those that really need help will lose out. i mean we are on the front of the battle line just like the doctors and nurses who have to suffer giving us sub standard care in the first place because they cannot get their shoes tied right at all in the first place. Candidates for presidency not all of your american citizens are not stupid even the ones that are really poor.