Insurance Long-term care: security for Americans - Health crisis in America
A crisis of health care looms on the horizon for many Americans, one that could bring financial and emotional devastation that would magnify gas prices and rebounding equities markets.
The problem? According to Metlife, 70% of people over 65 will need a form of extended care before he dies full-time, whether a visiting nurse at home or care. According to the Alliance for Aging, at the age of 65 "almost 9 out of 10 Americans have at least one chronic disease". Thanks to modern medicine, these conditions weakening, but not immediately fatal. Most elderly people are expressing concern for the necessary attention to this condition about payment, but few do anything to prevent it.
Laura Moore, senior vice president of John Hancock's long-term care insurance, says the problem is "more and more significant because Americans are living longer, health costs are rising and occupational retirement plans are reduced." Moore says Americans "are not the reality versus what will come."
If you need extended care, but it can not afford to, the burden will fall on their families. The emotional, physical, and financial burden for a sick parent of care is so traumatic that, according to the American Foundation Against Alzheimer's, 60% of caring relatives die before the person dying for them. Also, if it is brought to a nursing home without the means to pay the bill, you will not only risk your life-long savings, but also the family at home and even your life insurance.
Understanding of long-term care
A longer or extended care refers to the care needed over the period covered by Medicare or a major health insurance. It is often provided in a nursing home but can also be provided in a person's home or in a facility for assisted living.
The cost of assisted living, nursing home and home health professional is high and rising annually. A study conducted in 2003 by Metropolitan Life Insurance found that the average rate was $ 180 per day or $ 66,000 a year for a private room in a nursing home. Care in a facility for assisted living averages $ 30.288 per year while professional home care would cost $ 166,440 per year for care around the clock at $ 19.00 per hour. Inflation by the year 2021 can cost nursing homes to 175,000 $ per year.
There are three solutions that make this high cost of extended care in order to survive. You can be rich enough to pay all the costs yourself, participate in an effort to exhaust your assets and qualify for Medicaid, or you can purchase the LTCi.
Insurance long-term care
LTCi is an insurance program that pays for extended care when medicare and private medical elderly are exhausted, or interim care or custody that are not covered by Medicare or large medical. The most comprehensive programs cover home care, assisted living and nursing homes. The simplest plans provide only home care, and are also less expensive.
Care usually assist with daily activities such as eating, dressing, hiking, bathing, moving from bed to chair (call transfer) and using the bath, or in case of cognitive impairment, sitting with only one person to avoid danger to themselves.
Whatever the type of preferred plan is, like any other type of insurance. You can not buy if you really need care.
The decision for long-term care insurance
Two factors that people hold from LTCi is a refusal to accept the possibility that it could really need one day and the perception of insurance as "expensive". While you can never really need it, if you live a long life, chances are you are. The cost of it and not using it is much smaller than it needs but does not have.
The objection that most people increase on LTCi purchase are the cost. It is perceived as "expensive" and perhaps it is, especially if you are waiting until you are in the 70s to try to get it. However, if the temptation to procrastinate, ask yourself if you could make an account of about $ 4000 per month in what you have today. When you retire, you probably have more money available or less? Would not it be better to pay an average premium of $ 900 to $ 2,000 a year and not now than face the prospect of paying twice a month if you need to take care? According to Medical News Today, "LTCi can be quite affordable, especially if you buy at a relatively young age."
Rely on Medicaid to pay the bill
Medicaid is a state and federal program for people who are in poverty or who have certain physical conditions. According to a 2003 report by the American Council of Life Insurers, Medicaid pays only 17% of the bill LTC USA. LTCi Currently, the bill pays for about 5% of people with coverage. A huge 58% of the LTC bill is paid by people who are forced to reduce their assets to the care they need.
To qualify for Medicaid for home care elderly, you need to be below a certain income level and can have only a limited property. The rules vary according to the state, and new laws make it more difficult to qualify. And not, for example, you can transfer your assets to your children and then enter a home care. Most states have been looking back over a period of three to five years with a penalty of hard accompaniment for those who have tried such a transfer.
The misconception of Medicare
Many people mistakenly believe that Medicare will pay your bill for the nursing home.
Medicare covers hospitals and care facilities for a limited period of time. With an additional payment of 21-100 - Medicare for 100 days of qualified care in a nursing home if you are admitted to the institution within 30 days, leaving hospital and has become for the same condition in the hospital for at least three days. A doctor must have that need to certify this concern.
Medicare pays for qualified care in your home if the care is provided by an home care agency, but you must be homebound, under medical care and attention should be intermittent or time part. Medicare does not cover any cleaning services, personal care assistance such as bathing, dressing and other activities, delivery of meals or care at home in full-time.
Medicare Supplement Insurance (Medigap) and Tri-Pflegedienste do not cover long-term care.
Determine if you need LTCi
Some experts say that only the middle class people with more than $ 100,000 assets need LTCi. The very rich can afford to "make" (but may prefer to spend their inheritance to their children and leave a company to pay for your care) while the very bad for Medicaid come into consideration. Those who are already on Medicaid are not eligible. If you are forced to leave however on Medicaid, your heirs can lose your home and pay all your life insurance, except enough for his funeral. To make matters worse, put on Medicaid your options to nursing homes that accept it. Medicaid does not pay for assisted living and only pay a very limited home care. If the independence and the situation are important to you, talk to your family to see if the resources can be bundled to provide LTCi.
If you have investment, IRAs or savings, a small farm to have built up moderately, you will definitely lose more if you need the care in their later years. Several strategies can make the cost of LTCi seem less intimidating.
Choose an LTCi policy
Providers of LTCi often have a variety of packages; The language is confusing, and the comparison can be difficult. Despite the convenience of internet and e-mail ordering, it is always best - considering LTCi - to be licensed with an agent and reputable to answer your questions and work with you to design a plan that suits your needs Fits needs and your budget.
The policy should cover several levels of care, not just a nursing home. The benefits should increase along with inflation. You should buy a company that remains in the business in the long term and has a solid reputation for payment claims.
Preispolitics are determined by age, the duration of the benefit (which changes from one year to life) and the dollar amount are paid per day. According to recent federal statistics, the average stay in a nursing home is 30 months. Although five years or more is an attractive advantage, a policy 3 years will drastically reduce the price.
Another way to save money is a waiting period, usually called "elimination period". You can think of it as "deductible" or number of days for which you pay for the care yourself before your policy begins to pay. Part of the plan should include a consideration of how to pay during the elimination period.
Lack of planning could lead to disaster
According to Financial Planner, Jeffrey D. Voudrie, for LTC the possible need to ignore is the wrong decision. The National Center for Health Statistics reports that currently about 1.6 million people live in nursing homes. "It is likely that number will increase significantly if the baby boomers reach their later years." Voudrie reports that many families "caught in the nightmare of care to create that is not covered by an insurance or gobierno.Este problem will not disappear, since the government is likely to cover even less attention in the future." Already advised families "act now".
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