Do you have a a long term health care policy?

Lethe200 said:
Sadly, it's impossible to buy the policies we have had for 20 yrs. It's why the premiums have gone up so drastically (which we expected and can afford); the insurer would love for us to reduce coverage, LOL. Ours are unlimited benefit period plus our compounded inflation rate of 5% is higher than most companies give nowadays.

Rather than looking at other people's policies, I'd suggest you talk to an LTCi agent - e.g., someone who specializes in this insurance, NOT your usual homeowners/auto guy who will probably know nothing about the "fine print". Just realize sooner is better than later when buying LTCi - if you are not in really, really good health/weight and/or under age 60, expect to be rated. Underwriting is VERY "tight" on LTC and LT-disability policies.

The amount of daily benefit is up to you. I would suggest a minimum of:

- at least $150/day on a partnership policy, payable 100% on home healthcare as well as nursing home. That is $54,750/yr tax free - no small sum over time.

- standard 3 month exclusion. That means you are self-insured for those 3 months. However, if Medicare covers your stay, then it's not a big deal. Also, if you go into a convalescent facility for ANY reason, you can and should notify your LTCi carrier. You will be credited those days as part of your 3 month exclusion period - this period is usually (check this to be sure) a cumulative # of days. So if you go in for 2 weeks in year 2021 and 1 week in year 2023, those three weeks should be counted towards your overall exclusive period.

- Get the longest benefit period you can find. Stop thinking about saving a few $$$ and realize this impacts your life once you can no longer manage on your own. Our CFP has a client who suffered a stroke. He is compos mentis but can no longer live alone. The man was able to live in a very nice facility until his $$$$ ran out, and then 14 yrs later had to move to a Medicaid facility. Where we live, such facilities are literally 'bottom of the barrel'. I wouldn't want to live in such a place and neither will you. Don't assume you will be senile and "not notice." I can assure you even people with dementia notice the smell of urine-soaked walls and starchy, tasteless food.

- Last and most important: get the highest compounded inflation rider you can find. Inflation historically runs 3% annually and healthcare costs always increase faster than the CPI. We bought the cheapest daily benefit policies offered, but with a 5%/yr compounded inflation rate over 20 yrs, each policy currently pays $120K+/yr. Obviously, receiving that money tax-free for an unlimited period is an extremely comforting backstop for our finances.

HTH.
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Thanks for the information Lethe200, much appreciated.
 

Sounds like some of you actually have good LTC policies. Great! I checked them out, twenty years ago, and, in reading the fine print, found them sorely lacking. I opted to rely on my own resources, being well aware of potential costs.
 
I looked up the CA partnership plan. To qualify, the minimum insurance purchase provides $180 per day for 365 days.

Advantages and disadvantages to buying LTC this way:

How Do I Benefit from Partnership?

A California Long Term Care Partnership policy sets up a pre-defined amount of asset protection for the purposes of qualifying for Medi-Cal in the future. For example, you could buy a policy today that will provide a Long Term Care benefit of $500,000 when you are 75 years old. Once that policy’s benefits are exhausted, the Medi-Cal program would disregard the same amount, or $500,000 of your assets when considering your eligibility for state assistance to pay for care.
In addition to the monetary savings that come with Partnership plans, there is an additional regulatory authority that oversees the administration of LTC policies. What this means for you as a consumer is that your LTC policy may be less prone to rate increases because of the extra layer of authority at the state level.

In addition to the monetary savings that come with Partnership plans, there is an additional regulatory authority that oversees the administration of LTC policies. What this means for you as a consumer is that your LTC policy may be less prone to rate increases because of the extra layer of authority at the state level.

Finally, Partnership policies come with a provision that requires enhanced care coordination. This insurance company-paid benefit provides access to caregiver resources that you may not find independently or even included with non-Partnership policies. This benefit alone is one reason some Californians purchase Partnership policies rather than rolling the dice and self insuring.

What’s the Downside?

The downside to Partnership policies is twofold in California:

1) Because you must buy 5% Compound inflation protection (at age 65 and below, where most buyers are age wise) you have to buy an expensive rider that is often more than is desired.

2) The number of companies that participate in California’s Partnership policy is very limited. Less competition may lead to higher premiums. Non-partnership plans have more companies offering coverage and hence you may find a better deal for the core coverage.
 
mathjak107 said:
we are in ny ... ny and one other state are the only two that offer 100% asset protection when you take plan and the insurance runs out ...every other partnership plan is a dollar for a dollar .

i see Massachusetts offers partnership plans too

https://www.seniorplanning.org/long-term-care-medicaid-eligibility/massachusetts/
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Unfortunately that Mass Medicaid Plan you linked to is for low income folks that qualify for the Mass Health Program and the applicant must be 65 or older.

[h=3]Eligibility:[/h] 1. Residency and Citizenship – the applicant must be a Massachusetts resident and be a U.S. citizen or have proper immigration status. 2. Age/Disability – the applicant must be age 65 or older, or blind, or disabled. The applicant must meet certain medical requirements consistent with the level of care requested. 3. Income Limitations – if single, the applicant’s income (wages, Social Security benefits, pensions, veteran’s benefits, annuities, SSI payments, IRAs, etc.) must be less than $1,025 per month. If married, the income limitation increases to $1,374.
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note the very bottom ... Massachusetts long term care insurance partnership:

This is a program between the state and private insurance companies. Partnership policies protect assets by matching dollar for dollar what policy holders pay into their policies. For example, if you bought a Partnership Policy with a maximum benefit payout of $155,000 then you are able to protect $155,000 of your assets. For married couples each spouse needs to purchase their own policy. Once the $155,000 worth of long term care coverage is used, you may apply for Medicaid with $155,000 worth of assets exempted.

so if you spend 250k on care and have a plan that pays out up to 250k , then 250k in assets is protected if you reach a point medicaid is needed .









 
mathjak107 said:
note the very bottom ... Massachusetts long term care insurance partnership:

This is a program between the state and private insurance companies. Partnership policies protect assets by matching dollar for dollar what policy holders pay into their policies. For example, if you bought a Partnership Policy with a maximum benefit payout of $155,000 then you are able to protect $155,000 of your assets. For married couples each spouse needs to purchase their own policy. Once the $155,000 worth of long term care coverage is used, you may apply for Medicaid with $155,000 worth of assets exempted.

so if you spend 250k on care and have a plan that pays out up to 250k , then 250k in assets is protected if you reach a point medicaid is needed .
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Okay thanks.
 
All I know is my dad had a paralyzing stroke in his 60’s and spent 6 years in a home before he died devastating the family.

last I looked 60’s are decades under 100
 


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