Long Term Care
Posted by Steve Frazier
Our Program for May 11th was presented by Randy Halloway, and she talked about Long Term Care Insurance. Ms. Halloway is employed by John Hancock Insurance Company, one of the leaders in providing this type of insurance. LTC (Long Term Care) insurance is probably the newest type of coverage being sold, although plans have been around for over twenty years.
LTC insurance covers the cost of nursing home or at-home care for individuals who are unable to take care of themselves because of accident or illness. Statistics provided by Randy show that at least 70% of people over age 65 will require LTC services at some point in their lives. Nursing home costs average $6,250.00 per month at present. Regular health care policies do not cover "custodial care", which is the type of care provided in nursing home. Medicare does cover 100 days after a period of hospitalization, but beyond that the cost comes from either personal assets or LTC.
A person is considered eligible for payment under an LTC policy if (1) he requires substantial help in doing two or more required daily tasks, or (2) he is a danger to himself or others. Under most LTC policies, payment is made for services provided to the insured at home, in a nursing home, or a hospice. Payments are made to providers of the care, including family members in most of the policy forms. Randy reminded us that LTC is not health insurance, and most of the costs for medical necessities are still covered under personal hospitalization (Medicare), as the LTC policy provides for custodial and not medical care.
If an individual does not have LTC and is in a nursing home, all of the personal assets (except the homestead) must be spent down to $3,000 before Medicaid state and federal help is provided. Payments for care are advanced by the government programs, but there is a "payback" program whereby the government files a lien on property to recover what they have expended.
LTC is a licensed product of the insurance industry, regulated by the Department of Insurance, and is available through agents and brokers licensed by the state to handle the product. (Story by Tad shaw and photo by Steve Frazier)
LTC insurance covers the cost of nursing home or at-home care for individuals who are unable to take care of themselves because of accident or illness. Statistics provided by Randy show that at least 70% of people over age 65 will require LTC services at some point in their lives. Nursing home costs average $6,250.00 per month at present. Regular health care policies do not cover "custodial care", which is the type of care provided in nursing home. Medicare does cover 100 days after a period of hospitalization, but beyond that the cost comes from either personal assets or LTC.
A person is considered eligible for payment under an LTC policy if (1) he requires substantial help in doing two or more required daily tasks, or (2) he is a danger to himself or others. Under most LTC policies, payment is made for services provided to the insured at home, in a nursing home, or a hospice. Payments are made to providers of the care, including family members in most of the policy forms. Randy reminded us that LTC is not health insurance, and most of the costs for medical necessities are still covered under personal hospitalization (Medicare), as the LTC policy provides for custodial and not medical care.
If an individual does not have LTC and is in a nursing home, all of the personal assets (except the homestead) must be spent down to $3,000 before Medicaid state and federal help is provided. Payments for care are advanced by the government programs, but there is a "payback" program whereby the government files a lien on property to recover what they have expended.
LTC is a licensed product of the insurance industry, regulated by the Department of Insurance, and is available through agents and brokers licensed by the state to handle the product. (Story by Tad shaw and photo by Steve Frazier)