LTC alternatives?

[badatmath]

yep, expect LTC costs to rise faster than the general inflation rate.

25 years ago it cost mom in a skilled nursing facility $125/day as a private pay resident.

5 years ago her sister in a SNF cost $275/day private pay.

Even Medicaid went from paying $90/day to $200/day over the same time period.

Hmm I think my insurance only pays $180/day. 5 years. . . I often wonder if i should cancel it but it is fairly cheap ($500/year). . . one of those mistakes I made earlier in life that now IDK. . .

 

[Chuckanut]

Interesting LTC numbers. It’s rather expensive.

WA state has a required LTC insurance plans that takes 0.58% out of every dollar a wage earner earns. IIRC, it pays out up to about $36,500 which is the lifetime max. That number is indexed to inflation so it goes up each year.

With your WA Cares benefit, you’ll have up to $36,500 (adjusted annually up to inflation) to spend on covered services. (Learn more about benefit amounts, based on years of contributions.) But how much does that really cover? For about a third of people, this amount could cover all the care they need in a lifetime. For everyone else, it will provide immediate relief from long-term care costs without the need to spend down their savings, as well as time to plan for any future needs. For people with private long-term care insurance, WA Cares can help cover the benefit waiting period.

 

[Dtail]

well it still would if she can’t access enough to do the things she wants.

trusts limit the amount you can take out

She has enough monies in and out of the trust to do anything she wishes, so again she is good.

 

[MarieIG]

the problem is spias lack liquidity and long term care can see 5-7% inflation. as well as taxable

our partnership plan requires at least 5% guaranteed adjustments yearly

Oh yes, SPIAs do lack liquidity, hence it/ they are only a small part of the plan.

 

[mathjak107]

Oh yes, SPIAs do lack liquidity, hence it/ they are only a small part of the plan.

for those interested in spias , there is no better deal available in a commercial spia then delaying social security until 70 .

for the cost of those checks not taken , one can’t buy a commercial annuity that offers more

 

[MarieIG]

for those interested in spias , there is no better deal available in a commercial spia then delaying social security until 70 .

for the cost of those checks not taken , one can’t buy a commercial annuity that offers more

Both DH and I are deferring until 70.

 

[Scuba]

Seconded here. The key is to pay the full retail rate for, I would recommend, at least two years to get into the facility you want. If you happen to have more staying power than you thought, the nursing home will, 99% of the time, (Yes, some still won't but they're for movie stars and politicians) accept Medicaid to cover the difference between your social security and their bill.

This works if you are in a SNF, but if you’re in Memory Care or Assisted Living, those are not covered by Medicaid. Memory Care is the scariest as it’s very expensive and people in Memory Care often last for many years with, in my opinion, relatively poor quality of life. People in skilled nursing usually don’t last nearly as long so the financial risk is more manageable.

Still, we also decided to self-insure. We don’t have anyone to fight with insurance companies for us and we should have sufficient assets to fund our potential needs.