Tag Archive | government long term care

Partnership Policy: Collaboration between Long Term Care Companies and the Government

Medicaid is a program set by the government that specifically tackles and provides long term care needs. However, this program has an asset level requirement that is quite low. This means that your assets have to be nearly exhausted to qualify. The tendency is for you to spend down in order to be given benefits. That was the case until the government started pairing up with long term care companies.

This collaboration between the government and the different private insurance providers paved the way for a new type of long term care insurance—the partnership policy. If you sign up for this, you can protect your assets and still qualify for Medicaid.

 

Before partnership policies came into picture, buyers of long term care insurance were to choose between a reimbursement policy and an indemnity policy.

 

In a reimbursement policy, the insurer will pay off the exact amount that you have incurred for care and expenses. What remains of your maximum benefit will be returned to your pool to be used for other claims in the future. Meanwhile, an indemnity policy pays off your maximum benefit regardless of the actual amount of your expenses. You can use what remains of your benefits any way you want.

 

Back then, most people would opt for the indemnity policy, however, this type costs more than a reimbursement policy. Those with financial limitations have no choice but to purchase a reimbursement policy with the thinking that at least, they were covered with insurance.

 

But with the onset of partnership policy, people are given more options; thanks to the tie-up between long term care companies and the government.

 

Partnership policy originated in 4 states—California, Connecticut, Indiana and New York, but due to the Deficit Reduction Act of 2005, this type of policy has been made available in all 50 states.

 

Basically, you need to reside in the state where you wish to receive care in order to qualify. Furthermore, your policy needs to be protected against inflation, too. Most policies have this feature so this requirement is not hard to meet.

 

Medicaid Asset Protection is the main feature of a partnership policy. It provides a shield to a portion of your asset that amounts to your total benefits. Say your policy’s maximum benefit is at $300,000, in effect, it protects $300,000 worth of your assets against Medicaid’s asset boundaries. You can be qualified to claim Medicaid benefits after you have utilized your policy’s benefits.

 

A partnership policy offers a win-win solution when it comes to getting covered for long term care. First, you get the benefits that a traditional policy has. More so, you would not be anxious should you need more care after you have claimed your benefits as you can still be covered with Medicaid. Most importantly, you get to preserve your assets. Assets that you toiled for and intend to pass on to your loved ones or heirs.

 

Long term care is a national issue that needs to be dealt with. It’s good to know that it is being addressed with the best efforts. Though there’s still room to improve when it comes to this issue, this tie-up between long term care companies and the government can be considered as a good start.

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Long Term Care Legislation: Is It Really Effective?

Many senior citizens face problems when it comes to their long term care needs.  From rejected claims to limited coverage, these types of scenarios are not new to the long term care insurance industry. To protect the rights of elderly consumers, different states in the country have launched different steps in passing different long term care legislation.  These laws are also aimed to improve the industry for long term care.  However, the question remains, are these legislations really effective in making sure that our senior citizens are get the care that they need? 

People still rely on government funded insurance  – In spite of the different steps taken to make long term care more accessible and affordable in the country,  People still rely  on government funded insurance programs such as Medicare and Medicaid. In a recent survey conducted, most people still have strong belief that these federally funded programs will cover the cost of their long term care needs. In the latest report conducted, more than 10 million Americans have long term care needs.  And out of this figure, two thirds of the costs are paid by these government funded insurance programs.

Still no improvement in the long term care system – In previous years, there have been different long term care legislation that have been passed to protect the rights of elderly consumers. Some of these are the Community Living Assistance Services and Support program, the Medicare Catastrophic Coverage Act of 1988.  Though these programs had legitimate objectives in helping elderly Americans, these laws are still not able to meet the demands that the nation is now facing with long term care.  More elderly people rely on Medicare or Medicaid to cover their LTC expenses while others pay out of pocket for these long term care costs.

 

Many are still signing up for private long term care – As people find laws for long term care not as effective, many are still signing up for private long term care.   Unless a person belongs to the country’s wealthiest, most elderly citizen would still like to ensure that their long term care needs are covered in the future. It is expected by 2030, the costs for long term care would quadruple and this is the dilemma elderly American citizens are now facing.   If there are no effective laws in place that would focus on long term care, the country’s population would have to turn to private insurance companies for their LTC needs.

As the country’s leaders are still finding for ways to create long term care legislation that are  lasting and effective,  elderly Americans and those who require long term care still rely on government funded programs such as Medicaid.   Though previous laws regarding long term care have been passed, there are still flaws regarding these legislations.  In the end, more Americans are still relying on private institutions to cover their long term care expenses.  They sign up for long term care insurance.  With this, they hope they would be able to live independently while enjoying the rest of their lives.

 

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