Long Term Care Insurance
Most individuals are covered by health insurance programs that pay the cost of medical care if they become sick or have an accident. Unfortunately, except in rare instances, these health plans do not cover the cost of custodial care when someone does not have an acute medical condition but still requires assistance with their activities of daily living (dressing, bathing, cooking, etc).
Long Term Care Insurance is designed to cover expenses associated with this custodial care. Depending upon the plan purchased, these expenses can include the cost to have someone assist you in your own home or the cost of a nursing home or an assisted living facility. Request A Quote or call Becky Kazcor at 425-455-0501 x 113.
Frequently Asked Questions
[accordions][accordion title=”Will I Need It?”]Right now in excess of 8 Million people over the age of 65 are receiving some form of long term care1. It is estimated that 43% of Americans over 65 will spend some time in a nursing home. If you are a woman, your chances increase to 50%2.
1 US Department of Commerce
2 New England Journal of Medicine
[/accordion][accordion title=”Could I Afford Long Term Care?”]The cost of long term care is high. In the Puget Sound area, 24 hour, in-home care costs between $40 ,000 and $50,000 per year. Nursing home care ranges between $30,000 and $80,000 per year depending upon the location and quality of the facility. [/accordion][accordion title=”Who Pays the Bills?”] In most cases, long term care recipients and their families bear the costs of long term care. A study by the Health Care Financing Administration revealed these facts about who pays for long term care services.
[/accordion][accordion title=”What About Medicaid?”] Medicaid was enacted to provide services for this nations poor. For several years many well-to-do citizens found ways to shift money out of their estates in order to qualify for Medicaid. The Omnibus Budget Reconciliation Act of 1993 made this planning harder to do by imposing look-back periods. This apparently didn’t go far enough. In 1996, Congress passed the Health Insurance Portability and Accountability Act which included a provision making it a criminal offense to knowingly transfer assets out of ones estate in order to qualify for Medicaid. This provision went into effect in January 1997. [/accordion][accordion title=”What About Medicare?”]The majority of Americans receiving long term care today are receiving custodial care. Medicare was never intended to pay for custodial care and will only pay benefits in a Medicare licensed skilled nursing facility for skilled care. In order to qualify for this benefit you must meet the following guidelines:
- You must be admitted to a hospital for at least 3 consecutive nights prior to eligibility.
- You must receive care in a Medicare designated bed in a Medicare approved skilled nursing facility within 30 days after your release from the hospital.
- Your physician must certify that you need, and you must receive, skilled nursing or rehabilitative services on a daily basis.
[/accordion][accordion title=”When Should I Purchase a Policy?”] Most experts suggest purchasing long term care insurance when you are in your late 50’s or early 60’s. You must qualify as a good risk to be accepted by most major insures and while perfect health is not mandatory, reasonably good health is. One advantage to buying the insurance at a younger age is that most insurers “lock in” your age at enrollment. The younger the age, the lower the premium. Insurers can only raise the rates by getting approval from the Insurance Commissioner to raise the premiums for everyone in the state. [/accordion][/accordions]
Most individuals are covered by health insurance programs that pay the cost of medical care if they become sick or have an accident. Unfortunately, except in rare instances, these health plans do not cover the cost of custodial care when someone does not have an acute medical condition but still requires assistance with their activities of daily living (dressing, bathing, cooking, etc).
