freshare.net
LITTLE ROCK – The state has begun a long-term care insurance program designed to allow people to protect their assets if failing health requires them to move into a nursing home.
The program is called the Arkansas Long-Term Care Partnership. Its purpose is to reduce the negative financial impact that often hits people when a family member must enter a long-term care facility.
Long-term care is very expensive. Government pays for much of the costs, through the Medicaid program, but the problem for middle-income families is that they don’t qualify for Medicaid. They only become eligible once they have “spent down” their assets, which they have earned over their lifetimes and hope to bequeath to their children and loved ones.
In other words, to become eligible for Medicaid and receive government help for long-term care, too many people must become virtual paupers. Typically, in order to become eligible they must spend down their lifetime’s accumulated wealth until they have no more than $2,000 left in their names.
Under the new partnership, people who buy long-term care insurance from a private company won’t have to spend down all their assets. They can keep an amount equal to the benefits offered under the insurance policy. For example, if a person buys a long-term care policy that offers $50,000 in benefits, that person may keep $50,000 in personal assets and still become eligible for Medicaid.
As the baby boom generation approaches retirement age, legislators and public officials continually grapple with the issue of providing affordable health care to an aging population.
The issue is complicated by the constant and dramatic increases in the cost of health care, especially for the elderly.
According to information provided by the Long-Term Care Partnership, a relatively health person in his mid 50s can expect to pay from $70 to $100 a month in premiums for private long-term care insurance.
Of course every insurance policy will differ, but in general they pay for services such as home health care, assisted living, nursing home care, hospice care, various sorts of therapy, adult day care and supportive equipment. Generally speaking, consumers buy long-term care insurance to help cover the costs of maintaining an independent life style in the least restrictive environment possible.
The state Insurance Department also is a partner in the program. People who are interested in long-term care insurance through the partnership should make certain their private insurance providers are participants. Here is the Internet address of the partnership’s web site: ltcp.arkansas.gov
The Insurance Department also runs the Senior Health Information Program, a which also helps people deal with supplemental Medicare policies. Remember, though, that Medicare is a different program than Medicaid. The Insurance Department helps consumers make informed decisions about both programs. It also will maintain a list of private insurance companies that are participating in the Long-Term Care Partnership, which officially began on July 1.