Timing the Purchase of Long-Term Care Insurance

    Procrastination is a terrible thing.  Usurping the use of a “to do list”, procrastination creates a pile of important tasks out of what used to be a few menial chores.  Middle-age adults in the USA seem to be under the spell of procrastination as they postpone planning how they will live when they are old, including their options for health care.  What is meant by “planning” is the complete understanding of the costs of aging.  Recent Medicaid changes are sure to surprise a few.  Avoid this surprise by taking the time to understand what the future implications are for yourself and your family.  It is imperative that individuals over age 50 consider long-term care insurance, applying for the insurance while they are still in good health.

 

            Not only does it make sense to purchase the insurance while you are in good health, but there are financial benefits as well.  The average annual premium increases by nearly $2,000 if you purchase health insurance at age 65 instead of age 55.  Even so, it is a struggle and hardship for many people to pay for this care.  Recently, there has been new legislation put forward to make this struggle easier.

 

            The Robert Woods-Jonson Foundation and Professor Mark Minor of the University of Marylandin 1992, created an experimental program that allowed middle class citizens to purchase long-term care insurance and protect their assets from Medicaid estate recovery up to the amount paid by a qualifying long-term care insurance policy.  It was implemented in four states and has had many degrees of success.  In Connecticut, Indiana, New York, and California it has begun to provide an appropriate safety net for the middle class.  It is a Long-Term Care Partnership that has proven to be the best program in the U.S. as of now.  It is good enough to be implemented in the other 46 states and should at least be considered by many state governments, looking at the success and failures of the program.  Other commercial long-term care insurances are far too expensive for the average American and this program would certainly reduce this cost.

 

            The National Academy of Elder Law Attorneys (NAELA) has called upon the National Governor’s Association to study Long-Term Care Partnership program to help create a responsible approach to long-term health insurance.  At this time though, many citizens must go to extreme measures to pay for long-term nursing home care.  It is imperative for our governments to consider the new concepts and programs available for long-term care insurance.

 

 

Many of the concepts and opinions developed in these blogs have their origins in Eye on Elder Issues, a continuing publication of the National Academy of Elder Law Attorneys. Visit the academy website at www.naela.org