LTC Insurance

LTC Partnership - 9/22/08

INTRO: We've explained on Golden Opportunities how millions of Americans lose their life savings and homes when they become ill and need long term care. Medicaid will cover the costs in a nursing home, but to qualify you cannot have much money or property. But now there's an exciting new strategy in Ohio that allows you to protect much more of your savings.

1. WHAT ARE NURSING HOME COSTS RUNNING TODAY?

A. The national average is now more than $2000/day, or $71,000/year. And the costs for care, both in nursing homes or at home, are skyrocketing.

2. UP UNTIL NOW, WHAT'S BEEN THE SOLUTION?

A. There have been three main approaches:

  1. Pay privately for care until most or all of your money's gone, than go on Medicaid.
  2. Plan for Medicaid by moving assets around, to kids or trusts. But that can put you in a very risky position.
  3. Buy long term care insurance. But if you buy a three year policy and you're in the nursing home longer, you could still lose your life savings.

3. WHAT'S THE NEW STRATEGY?

A. This is very exciting. Ohio now has adopted a partnership plan. Under this program, you would buy a LTC insurance policy. The policy provides a maximum benefit amount. When the benefits are exhausted, you can then go on Medicaid. But instead of having to spend all your savings first, you can keep a much larger amount and still qualify for Medicaid.

4. CAN YOU GIVE US AN EXAMPLE?

A. Let's say you buy LTC insurance that will pay for three years of nursing home care at $175/day. Over three years, you'd get $190,000 of benefits.

So if you go to a nursing home, the insurance pays. At the end of three years, it's over.

Without this new program, you now have to spend down your life savings to $1500 if you're single before you can get Medicaid.

But under the new program, you can keep $189,000, which is the amount of your insurance benefits, and still get Medicaid.

In other words, the new partnership plan is a wonderful new strategy to help you get Medicaid without going bankrupt first.

5. DO ALL LTC POLICIES QUALIFY FOR THIS NEW PARTNERSHIP PLAN?

A. No. They policy must meet certain requirements. For example, it must include certain basic benefits and it must have inflation protection.

CLOSE: Planning for your care in the long term can give you peace of mind right now! Knowing you have a partner in your corner - the Ohio Partnership Plan makes it even better!