As baby boomers enter their retirement years, many mistakenly assume government programs will meet their future Long-Term Care (LTC) needs. But both Medicare and Medicaid have limitations and may undergo significant changes in the face of the growing federal deficit.
Now is the time to start having conversations with your clients about LTC planning, the risk of depending on government programs, and how those programs differ from private LTC insurance.
This educational approach will help position you as a valuable resource for your prospective clients.
Resources for Long Term Care:
- Medicare, like most health insurance, is primarily meant to cover acute illnesses. It does pay for some LTC expenses, but there are significant limitations, and you must be age 65 to qualify. Some benefits are payable for the first 100 days per benefit period in a skilled nursing facility, if you enter within 30 days after a hospitalization of at least three days, and if you are receiving skilled care and continue to get better. Medicare does not cover custodial care — help with the activities of daily living that a person could need for years.
- Medicaid is a joint federal and state insurance program that pays a large portion of the nation’s LTC expenses. Most state laws require that you spend down your assets before you become eligible for benefits, and may limit the options as to where and what kind of care you can receive. Some states have proposed revisions to Medicaid that could further limit eligibility in the future.
- Private LTC Insurance is a more dependable option and provides benefits for care in a variety of settings, including the familiar surroundings of home. You can assist your clients in taking responsibility to help secure their future by designing an LTC Insurance plan that will fit their specific needs and budget. That way, they can feel confident they will get the care they need without worrying if they will need to rely on a government program to pay for it.
Did You Know? Your social security statement says, “Medicare does not pay for Long-Term Care, so you may want to consider options for private insurance.”
Contact your LTC Sales Associate today for more information and resources.