Long Term Care Insurance

[DonaldT721763]

TO: AARP Bulletin Editor Member Services

For a number of years, correct as years, I have contacted AARP Senior Management regarding the extreme high cost of Long Term Care Insurance. Request was their direct evolvement in providing lobbying to secure financial assistance to those that are self-funding the Long Term Care Insurance. The TransAmeruca LTC policy in CT monthly premium cost is:  $905.67

The requested financial assistance would be State and Federal US Income tax and/or credits based upon the LTC premium cost. The policy owners have adopted the personal responsibility to fund a portion of their LTC health care rather than having Government taxes fully support with Medicare or Medicaid.

To date, I never received any type of reply from the AARP Senior Executives or anyone else in the AARP organization.

Your assistance is requested to raising the visibility of the extreme cost ( monthly premium of $905.67 ) of Long Tern Care Insurance and securing Government financial support.

[DirkB349973]

If the government subsidizes your LTC premiums and you don't use the coverage (death or other circumstances), the government receives no benefit for the money spent. Most people in a nursing home die within the first year, so Medicaid is probably a more cost effective solution than premium subsidy which could go on for decades.

[PaulE709499]

 Today's Barrons has an article about LTC. AARP is referenced and not in a positive way in my opinion. Check it out if you have access to Barron's.

[GailL1]

WHY - ????

The choice for LTC insurance is up to the beneficiary or maybe their family.

Many may just opt to spend their own money IF and when they ever need it for LTC - If one does not have the money - then there is always MEDICAID -

LTC is expensive - no matter who pays for it - but we already have a government step in to take care of this matter - MEDICAID.

Otherwise it is up to you to spend your resources as you see fit - either on a LTC policy OR for whatever your needs maybe within that long term care.

[PaulE709499]

 I believe there is a look-back period involved with medicaid. I guess the way to go it either spend it all or give it away first if you don't want to self insure or buy a policy.

[BrynaB519860]

As I understand the situation (I'm 100% open to correction!), the difference between Medicaid and LTC is one of quality. With LTC (assuming the carrier is in business to provide and not deny!), you can afford better-quality care if/when you have to go into assisted living or a nursing home. My understanding of Medicaid (again very willing to be corrected!) is you won't get the same quality of care. Additionally, you have to give up most of your financial assets to qualify. You can keep your assets with LTC. In short, I currently view LTC as a necessary evil and another unfair privilege for the wealthy. What we really need is free and full single-payer healthcare for everyone at all stages of life. Call it socialized medicine if you like. It's better than being eaten alive by insurance companies who wish us well and paying premiums or dead and not costing them anything.

[GailL1]

@BrynaB519860 

Long Term Care is custodial care - it has nothing to do with medical care.  

Whether on Medicaid or Medicare or even being a dual eligible has no effect on getting Medical care - but only Medicaid covers the custodial care because the beneficiaries are poor and can’t pay for this. Other people can pay for it - whether by buying LTC Insurance or paying out of pocket with their own assets.  Others have family that may want to do it out of some loyalty or maybe just to preserve those available assets for themselves.  

Custodial care that is covered under any LTC policy are those things that everybody has to do for themselves or as provided by others if they cannot do so on their own in their DAILY LIVING - eating, dressing, bathing and other hygiene measures, using the bathroom, etc.  

AARP.org - Understanding & Making Senses of your LTC Insurance options

In the case of LTC you are talking about a person needing help with doing these daily living things and that is expensive especially when we want to pay the caregivers a living wage - and that does not matter where the care is given - at home, in an assisted living facility or in a nursing home.

Quality is a personal measure - just like everything else in this society - you get what you want to pay for - car, house, long term care

The government when it pays for this LTC for people on Medicaid that need it, has certain standards that have to be met - especially if they are in a facility and not just hiring people on their own.  Those standards really aren’t different than what a person that is paying out of pocket is getting.  

However there maybe less choices or different choices - say, like different food - steak rather than hamburger.  This kind of “quality” differences are applicable for all things in the daily living care realm -

what you get based on what you pay.  You can buy a Ford Escort or you can buy a Lexus LS 500.  They both do the same thing - getting one from point a to point b.

It is your financial assets to do with as you please - If you have them, you can spend them all on yourself including paying for your LTC or you can have a family member take care of you and perhaps pay them with your assets or you can have a lawyer hide your assets in some irrevocable trust so you look like a pauper on paper and get Medicaid.

Personally, I like choices - choices that I can pick from based on my ability to pay - those choices may not be a Lexus LS 500 but they won’t be a Ford Escort either. 

[DonaldT721763]

• Obtaining a LTC policy is a decision on the allocation of available financial resources, which does not specifically apply only to the wealthy. Some may prefer to have the latest and greatest in cars, size and locations of homes, vacations, 2nd vacation homes, etc. which is more than acceptable as a personal choice. Others may desire to provide for alternative LTC arrangements should the need ever exist in the later years, being an unknown, with scarifies in the younger years. Self funding reduces the Tax dollars spent for Medicaid, after depletion of personal assets. 

[GailL1]

@DonaldT721763 

You can also pick and choose the richness of a LTC policy and save premium money.  

Surely your LTC policy company has given you some options in that realm - that may mean that your policy covers less in the amount that would be paid out.