A 2010 study by MetLife’s LTCI showed that the average cost for a private nursing home room increased 5.7% from 2005 to 2010. That means in most states, it exceeds $200 a day. Costs of in-home care weren’t spared either, increasing 5.5%.
Even with the increase in health care costs for the elderly, many consumers don’t realize the benefits of long term care insurance. Some long-term policies cover not only skilled nursing facilities but also in-home care and companion care.
The House and Senate have begun to address long-term care insurance in several bills aimed at making the insurance more affordable and more realistic. These efforts signal a growing concern by citizens, lawmakers and interest groups about the affordability and availability of long-term care insurance in America.
Many of the bills contain similar provisions, including a tax deduction for the amount spent on long-term care premiums. One provision even calls for a $1,000 tax credit that will gradually increase to $3,000 for anyone who purchases long term care insurance.
Several of the bills also ease the Medicaid rules regarding long-term care benefits. In the new version of regulations, any benefits received from long term care insurance won’t count against Medicaid eligibility. The hope is that more citizens will be encouraged to get long-term care insurance, which will lessen the burden on Medicaid and Medicare.
Considering healthcare costs are rising, long-term care insurance can potentially offer relief from many years of steep bills and debt. Appropriate coverage depends on your financial situation and your retirement plan.
With all of the improvements and added features of long-term care policies, more Americans may begin to take another look at this product. And while long-term care insurance isn’t for everyone, it may be a great addition to your retirement plan. You should always work with a financial professional before purchasing the insurance. A long term care insurance quote may be worth considering, as the cost of medical care doesn’t seem to be slowing down any time soon.
Long term care insurance policies are also becoming more flexible and more able to tailor policies to an individuals needs and are working to become more of an investment option, in some cases they may even combine an annuity feature.
Some people are simply confused about what the insurance is and how you can purchase it. So in an attempt to clear up some of the confusion, companies are beginning to simplify their policies and the process to buy the insurance.
One of the biggest complaints against some long-term care policies has been their price tag. While most policies can potentially save their holders a great deal in medical costs, they can still be expensive.
In an effort to increase the use of the insurance, some insurance companies are beginning to reduce their rates on policies by as much as 15%. Some companies may also start adding a “shared care” element to their policies. In theory, that would allow someone who ran out of long-term care benefits to begin using their spouse’s benefits.
With all of the improvements and added features of long-term care policies, more Americans may begin to take another look at this product. And while long term care insurance isn’t for everyone, it may be a great addition to your retirement plan. You should always work with a financial professional before purchasing the insurance. Long term care insurance may be worth considering, as the cost of medical care doesn’t seem to be slowing down any time soon.
