Don’t Leave Your Long-Term Care in the Hands of Medicaid

Even if you eventually receive Medicaid coverage from the government, insurance is a valuable supplement to cover the cost of long-term care.

At today’s rates, a nursing home can easily cost $120,000 to $150,000 a year in New York. Medicare does not cover the cost of most long-term care situations, so it becomes very difficult for even an upper-middle-class family to pay for coverage. That is why having a long-term care policy can be so valuable.

When to Buy

It’s best to look into these policies when you’re relatively young and healthy. Investigate buying into a long-term care policy in your 40s or 50s, before any big medical event happens in your life. The older you are when shopping for long-term care insurance, the more expensive the premium will be, and the risk that you won’t qualify for a policy will increase.

Activities of Daily Living

As a caution, the implementation of policies depends on certain deficits in your ability to care for yourself. Self-care is broken down into six categories called the “activities of daily living,” which include:

1. Eating
2. Bathing
3. Dressing
4. Toileting
5. Transferring (walking)
6. Continence

Waiting Period

There is always a waiting period before the policy takes effect, but the duration of it can often be negotiated.

For example, a policy may mandate that you be covered by Medicare for a certain period of time before the long-term care policy kicks in. A longer waiting period can help keep down your premium, so a 90- to 100-day waiting period may not be as bad as it seems.

Daily Benefit

Decide on what daily benefit amounts you want. For example, do you want coverage at $200 a day or $250 a day? The higher the coverage, the more expensive the premium.

Compare Companies

Some companies have gone out of business or were forced to stop offering certain plans. To avoid situations like these, find a company that has a high bond rating with national credit rating agencies.

We’re Here to Help

You want a long-term care policy that will cover both health care and nursing home care. You also want a policy that has an inflation rider, so that your daily benefit increases over time.

If you need help choosing a long-term care plan that is best for you, consult with an attorney.

Robert W. Shaw, Esq.
(914) 328-1222
E-mail Bob

Tags: Long-Term Care, Long-Term Care Insurance, Long-Term Care Policy, Medicaid