Long-Term Care

Long-Term Care includes help with activities of daily living, home health care, respite care, hospice care, adult day care, care in a nursing home, or care in an assisted living facility. The cost of Long-Term Care can be very expensive. Long-Term Care Insurance is an affordable way to protect yourself from these staggering costs. This type of insurance will pay for some or all of your Long-Term Care.

Long Term Care Frequently Asked Questions

Does Medicare cover Long-Term Care?
No. The quick and simple truth: Medicare cannot afford to pay for Long-Term Care. Currently, Medicare will cover you for up to 100 days of skilled care, and only the first 20 of those are truly covered. Skilled care is defined as “…care that can be performed only by, or under the supervision of, skilled medical personnel.1” This means that home care and assisted living care typically do not qualify, and only in very rare cases do nursing homes qualify. In short, you cannot rely on Medicare for your Long-Term Care Coverage.

If Medicare doesn’t cover Long-Term Care, then will my supplement pick up the costs?
No. Medicare Supplements are designed to work with your Medicare so it does not cover benefits not already approved by Medicare.

What is Florida State Partnership?
Florida State Partnership is a fantastic new program that was started in 2006. Florida is one of the top two senior states in the country, along with New York. For this reason, Florida has had a heavy burden in their Medicaid system. The poverty line to qualify for Medicaid is getting lower, and the number of people in the system is getting higher. It goes without saying that the quality of care has greatly suffered and will only get worse as baby boomers continue to age.

State Partnership is a program designed to encourage individuals to purchase Long-Term Care. If you purchase a state qualified policy, the state of Florida may protect your assets equal to the amount of your policy. For example, if you purchase a policy with a pool of $100,000, then the state will protect $100,000 of your assets. That is money you will never have to spend down for your care. The state will also maintain your level of care. In other words, whatever level of care your Long-Term Care Insurance provided you, the state will maintain once your policy has run out.

Please be aware that not all Long-Term Care plans are state qualified, which makes it crucial to speak to a licensed professional.

What is Medicaid and what does it do for Long-Term Care patients?
Medicaid is the final option in Long-Term Care. When an individual falls below the poverty level and has less than $2,000 remaining in assets, they then qualify for Medicaid. You may have heard some of the ‘horror’ stories coming out of the Medicaid industry, we know we’ve heard plenty of them. The quality of care is not equal to privately operated facilities. You may even be required to share a room with others. There are limitations on leaving the facility and overnight trips. In some cases, you cannot visit family or take a trip, if you do you lose your spot. Some may not have any options, some did have options but simply waited too long.

When is the right time to purchase Long-Term Care Insurance?
Recommendations can vary, depending on who you ask. The most popular opinion is between the ages of 45 and 65. Once you pass 40 year of age the prices start escalating gradually and health status becomes more uncertain. The best time to apply for Long-Term Care is before you need it, and because health and wellness is extremely unpredictable it is best to get it as soon as possible. We have met 30 year old parents who could have used Long-Term Care Insurance due to a severe car crash and we’ve met individuals who made it to 90 years old without needing assistance. The bonus of getting Long-Term Care when you are younger is that you need to pay very little monthly premium to get it. So the answer? There is never a wrong time to get Long-Term Care Insurance, as long as you get it while you can still qualify.

My health is not perfect. Is it worth looking at Long-Term Care Insurance?
Maybe. Unfortunately, we cannot give you a definitive answer without meeting with you and discussing your individual situation. Underwriters look at everything on a case by case basis. We have at times been suprised by those who are, and those who aren’t rejected. The best way for you to know if it is worth applying, is to meet with one of our agents for a free review. We have many tools to determine eligibility, access to the underwriters themselves as well as access to multiple companies. Please contact us to set up your free review.

Is Long-Term Care Insurance right for everyone?
No. Long-Term Care Insurance is designed primarily to fulfill two objectives. The first is to provide better quality care, which of course everyone wants. The second is to protect your hard-earned assets and your income. If you do not earn more than $12,000 per year in income then Long-Term Care Insurance is not right for you. The goal of this insurance is to provide comfort and safety, therefore if your lifestyle must change drastically to afford this insurance, it is not right for you. Also, if you are currently receiving care or have previously needed care, this insurance is not for you.

So who is it right for? Individuals and families who have assets to protect and income above the poverty level. Whether these hard-earned assets are intended for your own use, or for inheritence, Long-Term Care costs could quickly deplete all that you’ve worked for. Long-Term Care expenses typically drains all assets in just a little over 1 year. Then what?

What are the costs of Long-Term Care in Florida?
The costs will vary greatly depending on the level and type of care you require and the area of Florida in which you live. Here are 2010 averages for Florida:

  • Nursing Home Care – Private Room – $82,125 per year2
  • Nursing Home Care – Shared Room – $74,825 per year2
  • Assisted Living Facility – $30,600 per year2
  • Home Health Care – $18 per hour2

In the past 5 years the cost of Long-Term Care has increased 17% nationwide3. In Florida they have increased 28%!3 These above figures are for those who need Long-Term Care today. It is important not to forget about inflation, because the costs of tomorrow will always be higher.

How much are the premiums for Long-Term Care Insurance?
This is not a question that can be answered online. To provide you with an acurate quote we need to do a full needs and health assessment. The price can vary greatly depending on those factors. A Long-Term Care Insurance policy can be affordable on most budgets. Take advantage of our free quote by clicking here.

How Do I Get my Free Quote on Long-Term Care Insurance?
Go to our ‘Get Your Free Quote!’ page. Fill out the requested information and check off Long-Term Care Insurance. An agent will contact you within 24 hours.

We, at ASB Financial, are strong advocates of Long-Term Care Insurance. With flexible benefits, premiums, and State Partnership qualification there has never been a better time to invest in your future.

To get more of your questions answered or to find out more about Long-Term Care, please contact us.

1 National Associastion of Insurance Commissioners, “A Shopper’s Guide To Long-Term Care Insurance”
2 Genworth Financial, Genworth 2010 Cost of Care Survey: Florida, 48592FL 04/27/10
3 Tampa Bay Business Journal, http://www.bizjournals.com/tampabay/stories/2008/06/02/daily16.html
*Neither Frank M DeJiulio & Associates, nor its agents, are connected with or endorsed by the United States government or the Federal Medicare program.