Caregivers need answers to bottom-line questions about the affordability and practicality of long term care insurance. As your advocate, I listen, help you answer these questions, and map out choices with you. Let’s start with these key questions.
Lorraine Kenney Spiotta

WHY DO PEOPLE PURCHASE LONG TERM CARE INSURANCE?

According to a study by Health Insurance Association of America, the most important reasons to purchase long term care insurance include the following:1

WHY WOULD I NEED A NURSING HOME? MY FAMILY WILL TAKE CARE OF ME.2

No one ever wants to think about a catastrophic illness, or simply an accident like a broken hip from a fall. Just close your eyes and think what life would be like with a broken hip; you could not walk, bathe or dress yourself. You would need someone to assist you in normal activities of daily living. Can you depend on family members or friends?

Long Term Care Insurance (LTCI) – Home and Community benefits usually provide payment to professional assistants, home health aids and some will pay for informal caregivers such as family members or friends not living in your home.

Many LTCI carriers have benefits for services designed to help you remain independent in your home, or care in another setting.

Children may not be able to provide all the care that you might need, (e.g. 24-hour home care).

Can the children guarantee that they will be available years from now when the need might arise?

How will the children manage their own families and also serve as a full-time caregiver?

LTCI can help supplement and enhance a family’s ability to care for someone.

Are you comfortable with your children helping you dress and bathe?

Long Term Care Insurance serves to broaden your options.

Won't the Federal Government Pay for My Long Term Care?3

While many people think the federal government pays for long term care expenses, nationally, over 30% of all nursing home expenses are paid out-of-pocket by individuals and their families. (see graph below.) Neither Medicare, Medicare Supplement Insurance nor the major medical health insurance provided by employers is designed to pay for long term care expenses.

Distribution of Funding for Freestanding
Nursing Home Expenditures for All Payers, CY 2000
Medicaid remains the largest single payer of nursing home care.

Note: Hospital-based Skilled Nursing Facilities are excluded.
Source: CMS, Office of the Actuary, National Health Statistics Group.

Here are the facts:

Medicare · While Medicare helps provide up to 100 days of skilled nursing facility care, it doesn't cover custodial care for personal needs or care that doesn't require professional medical skills or training. · Admission to a skilled nursing facility must be within 30 days of a three-day hospital stay, and admission can only be for the condition that was treated during that hospital stay. · A physician must certify the need for daily skilled care.
Medicare Supplement Insurance · Medicare Supplemental Insurance plans usually only cover the co-payments and deductibles of the limited skilled nursing benefits covered by Medicare.
Medicaid · Medicaid is a welfare program that requires individuals to spend down most of their savings and income before becoming eligible. · To qualify, you are required by Medicaid to deplete your assets to be at or below your state's poverty level. · Medicaid also imposes many restrictions, and your choice of facilities and locales is limited to those that accept Medicaid-eligible patients. · The spouse of a Medicaid recipient is allowed to keep a low level of income and certain assets in order to avoid poverty, but must pay amounts above these levels for the institutionalized spouse's care.

Often, I am asked by clients, “How much insurance coverage should I purchase?” That’s a great question, and I’ll help you answer it, based on your needs. Let’s look at GE Capital’s chart to help you begin understanding the financial implications as a result of a nursing home stay.

How Much Does a Private Nursing Home Room Cost in Your State?4 Information obtained through a survey commissioned by GE Financial, Long Term Care Division and performed by Evans Research of San Francisco during May 2003 © 2003 GE Financial Assurance Holdings, Inc. All rights reserved.

Questions to ask yourself:

• Where do you live/will live in the USA?
• How much income will be used to off set the cost?
• Do you have strong family support?
• Do you want to move in with your children?
• Do you want to remain in your own home?
• Will your spouse be able to take care of you?
  (Remember you will both be aging)

The answers to these questions are yours.
(I am available to guide you through the process and select the insurance carrier to fit your needs and plan design.)

Please complete the “Are You Eligible Form” by clicking this button,
or please call today Senior Long Term Care Insurance Brokerage, Inc.
at 1-800-736-4675. To discuss your long term care insurance options
or protection with Lorraine Spiotta.

1. Individual Commercial Brokerage, Inc.; Planning For The 21st Century, Volume 1, Issue 1, 2003.
2. Individual Commercial Brokerage, Inc.; You’ve Got Long Term Care Insurance Questions, We’ve Got
   Answers, January, 2003.
3. CMS, Office of the Actuary, National Health Statistics Group, pg. 19.
4. GE Financial Website; www.financiallearning.com/cost_nursing.html.