Long Term Care Options

[ChrisC]

Originally Posted by youbet

Perhaps the plan offered to federal employees needs to be offered to all citizens for the same price and under the same oversight and regulations?

The plan offered to federal employees, retirees and their spouses is not the cheapest plan around. Many of my co-workers have opted out of the plan in favor of cheaper plans offering the same benefits. (Term life insurance for federal employees is generally not cheaper than term life insurance offerred in the private sector.) I've heard that the subscription rate has been a dissappointment to the U.S. Office of Personnel Management, which "regulates" the plan offerred by Metlife/John Hancock to federal employees.

[Nords]

Originally Posted by ChrisC

I've heard that the subscription rate has been a dissappointment to the U.S. Office of Personnel Management, which "regulates" the plan offerred by Metlife/John Hancock to federal employees.

My father was eligible for this insurance when it was first announced, so we went over all the literature.

His John Hancock policy cost less for more benefits than the federal LTC program. So one of those programs is a bit more optimistic than the other and one of them is mispriced, but he decided not to switch.

[samclem]

Originally Posted by Nords

My father was eligible for this insurance when it was first announced, so we went over all the literature.

His John Hancock policy cost less for more benefits than the federal LTC program. So one of those programs is a bit more optimistic than the other and one of them is mispriced, but he decided not to switch.

I think the medical underwriting for the federal program is less stringent, which means that if you are in good health that you could get a better rate by not going through the federal program. Also, with the federal program men and women pay the same rate, which means women are getting a relatively better deal in the federal program, men get a worse deal.

In case some are wondering--the LTC insurance offered to Govt employees is entirely funded by premiums, no government money gets kicked in.

It seems, in fairness, that smokers should get a discount on LTC policies--I'd bet their claims history for these policies are lower than nonsmokers.

[youbet]

Originally Posted by chinaco

Since it cover HH, I would assume it would cover assisted living... seems very similar.

Assisted living includes your living quarters and, frequently, some meals. That would be substantially different than paying for someone to come into your home and help you with daily living.

[chinaco]

I ws visiting NH researching where to place my mother. Right now she is in an Adult day care (has bee for several years). I have noticed more than a few younger people getting care.

My advice, do not wait until you are older if you have networth to protect. Go ahead and get LTC insurance. If you were to have an accident or some debilitating illness strike you down... you could be ruined.

The solutions is not as simple as just getting LTC insurance. If you need this type of care for a long time... most policies have a cap. But it can buy time for someone (spouse) to plan and get past the lookback period in medicaid and not be ruined financially.

Admittedly, problems of this sort while younger are a small risk, but it does happen. And that is what insurance is about... mitigating the risk of financial loss.

[JohnDoe]

Can someone please explain self insurance?

My estate attorney said we should look into LTC. I am only 37 and wife is 42.

It seems the daily coverage, typically $150, is not close to what the daily cost would be, if an accident happened. I'm having a hard time convincing myself I need this.

[samclem]

Originally Posted by JohnDoe

Can someone please explain self insurance?

My estate attorney said we should look into LTC. I am only 37 and wife is 42.

It seems the daily coverage, typically $150, is not close to what the daily cost would be, if an accident happened. I'm having a hard time convincing myself I need this.

Maybe you don't need LTC insurance--most people wait until they are older before buying it. It is very unlikeky that someone your age will find themselves being unable to do several of the "activities of daily living" that would put you into a nursing home or require care in your home.

By waiting you'll save a lot of money. You'll also be taking some risk--you COULD have a stroke/car accident next week that would put you into this situation (very unlikely), or (more likely) you could develp a health condition that would make buying a policy later more expensive.

$150 dollars a day won't entirely cover the cost of a nursing home in the average US city, but it will come close. If you live in the NE it will be more expensive, more affordabe in the south. Also, if you've got other money coming in (from investments, a pension, etc) that could cover some of the costs. Remember that if you are in this situation, you won't be needing money for travel, etc.

Self-insurance: Hmm. It's very expensive to pay for this type of care. If you are single, it is probably not unreasonable to put away enough to cover an extended stay in a nursing home. I think it is harder to make this work for a couple, since you'd need to have enough squirreled away to cover the worst of either of two situations:
1) two extended nursing home stays
2) One extended nursing home stay and one long, full retirement (with the normal expenses)

I'm still procrastinating on buying LTC insurance. When my state finishes building/nominating/gettting approval for various plans that will qualify under the new rules, I'll probably look at those and buy in. It's not an easy decision--this coverage is expensive, and the typical ER would need to give up some real money every month to pay for something that we'd rather not use.

[Brat]

If you choose this type of policy I would take a long hard look at the insurer, they need to be the best in the business.

It is inexpensive if you buy it when your are young. Make sure you have a compounded increase in benefits.

When I pushed the numbers the sweet spot was a 90 day waiting period and lifetime benifits.

I have had a difficult time convincing my kids to buy this insurance, they think it can't happen to them. Their father and I know better. Today's medicine can make for a long goodby.