Partnership Program Geared to Offset Long-Term Care Costs
It’s no secret that the mounting expenses needed for Social Security and Medicare could soon financially cripple the United States. Some worry that they may never be able to cash in to either of those programs, or that they may be much older than 65 by the time they’re able to draw from either Social Security or Medicare. Another growing need is that of long-term care, a service for people with chronic illnesses or disability, according to www.medicare.gov, a government Web site that offers information about Medicare. The purpose of long-term care is different from Medicare, and generally covers basic needs such as getting dressed, bathing, eating or walking around the room.
About nine million Americans need long term-care now, and that number could soon skyrocket. According to www.medicare.gov, the number of people needing long-term care could jump 33 percent to 12 million by 2020. That’s why several agencies have partnered to try to help states offer their residents several options and have begun offering them incentives to purchase long-term care insurance. The average cost of long-term care in 2008 was $68,000 for a year in a nursing home — well over the nation’s median household income. The cost is much less for someone receiving long-term care at home, but it’s still no laughing matter — $18,000, according to the National Clearinghouse for Long-Term Care Information. And although many families prefer that their loved ones avoid nursing homes, some individuals don’t have the benefit of having a family member who can care for them. Other families may not have the skills, finances or adequate time to stay home with their loved one enough to care for them.
Through the Partnership for Long Term Care, states promote the purchase of long-term care insurance by offering access to Medicaid under specific eligibility rules in case the consumers need additional long-term care, according to an issue by the Robert Wood Johnson Foundation about the Partnership for Long Term Care. Congress has been working to make improvements to long-term care policies, issuing the Deficit Reduction Act of 2005. While this act is often better known for the reductions in Medicaid and Medicare, it also implemented some changes for long-term care, such as allowing partnership programs such as the Partnership for Long Term Care. The bill also states that someone who sells long-term care policies must receive adequate training and that proper education be given to potential policy customers, according to the Robert Wood Johnson Foundation. Education and proper planning are two of the factors that can keep people safe and reduce the cost of long-term care nationwide.
After the bill passed, the U.S. Department of Health and Human Services posted www.longtermcare.gov, a Web site that offers information for those seeking long-term care. About 70 percent of those over 65 will need some type of long-term care at some point, and Medicare does not pay for most of those needs, according to www.longtermcare.gov.
The needs of those needing long-term care can depend on their lifestyle, background or whether a family member can care for them for free. Medicare doesn’t necessarily cover all of the costs, and those with assets or the ability to cover at least some of the costs themselves are left to empty their pockets. According to the National Clearinghouse for Long-Term Care Information, Medicare pays when you have had a recent previous hospital stay of a minimum of three days; you’re admitted to a nursing facility (Medicare-certified) within 30 days of your previous hospital stay; or when you need skilled care.
If you meet these criteria, Medicare covers 100 percent of the nursing facility costs for the first 20 days, then you pay up to $133.50 a day for the next 80 days, and then you pay 100 percent afterward, according to the National Clearinghouse for Long-Term Care Information. However, there are other public and private programs that can cover at least a portion of the costs. The Older Americans Act offers funding through state and local agencies, for elderly who need care at home. Area Agencies on Aging and the State Agencies on Aging to develop programs for elderly families. ConclusionWhen it comes to long term care insurance, there is no simple or cheap solution. The reality remains that people get older, and with aging comes the increased need for care. And while the number of elderly people in America increases, so does the average life span. The government and several agencies have worked to absorb some of the costs that could quickly deplete someone’s pocketbook. For now, the best plan seems to be to educate people about the costs and options regarding long-term care. |
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