Coping with Long Term Care

Long term care is an unnerving issue that many elders and retiring baby boomers are dealing with these days. Its skyrocketing cost is the major constraint why a lot of seniors and their families are running out of money as they sustain about $70,000 and above a year for nursing home. Medicaid does not pay for the entire LTC expenses ‐‐ as what most Americans expect ‐‐ unless you have depleted your assets and you are below the poverty line. Since Medicaid has faced budgetary problems in paying for about half of its budget on long term care, the government implemented onerous laws that will limit Medicaid eligibility through asset limit.

How can you cope with long term care? People who don’t prepare for future long term care needs create the biggest mistake of their lives. According to the Center for Retirement Research at Boston College, one third of Americans will need long term care at some point in their lives. This is cruel reality, though. However, what you can do is listen to the statistics and prepare for your care.

Buying private LTCi policy is the first thing you may consider for your long term care plan. There are various companies offering LTC policies in every states. Most of these policies are individualized to cater a person’s needs effectively. A person can design his or her coverage accordingly. The price is usually based from the person’s age, health, and state where the purchase was made.

Purchasing long term care partnership policy is another option. Most of these partnership policies are available in many states that allow you to get a coverage without meeting the asset cut off of Medicaid. The asset disregard and inflation protection is what consumers benefit from partnership policies.

The Community Living Assistance Services and Supports Act or CLASS Act is the newest program under President Obama administration that will be launched in 2013 under the new health care reform law. This will give modest support for its members to prepare for their long term care. All actively working individuals are automatically enrolled in the program, unless they wish to opt out. The premiums will range from $50 to $100, but the benefits are yet to be determined by the Secretary of Health and Human Affairs.