Take good care of your baby


 

Baby Boomer Couples Cutting Health Care Costs

Baby boomer couples cutting health carecases, authorities count the value of a
costs by pooling resources to reduce theprivate insurance policy to determine
cost of long term care premiums. Insteadthe amount of assets that are protected
of buying for one, advisers and analystsagainst pay-down requirements in
say you can sometimes slash premiumMedicaid.
costs by approaching long term careIt saves the states money because
insurance as a couple.they're shifting costs of long-term care
For those willing to shop around theto insurance companies. And it puts
following three strategies are worthfewer burdens than we currently have on
exploring:the entire Medicaid system.
1.Shared care plansFor individuals, such partnerships can
In general, sharing long-term policieslimit the size of policies they've got
doesn't eliminate the need for bothto buy. The trade-off is that if you buy
partners to buy separate plans. Butless coverage than a state's threshold
unlike traditional policies, a specialto qualify for Medicaid, you'll still
rider is tacked on to each to allow onewind up dipping into your savings.
spouse to dip into another's benefits."If you live in a dollar-for-dollar
The main advantage of shared coverage isstate, you might want to buy enough
that if you need more than your currentinsurance to protect your entire
plan allows. But what happens if bothportfolio in a partnership program,"
eventually go over their allottedGholson said.
amounts?3. Ask insurance agents about discounts
If you've bought a contract with plentyon bundled purchases
of flexibility and terms that stretchThis could be the simplest way to
over long periods, experts say thatsavings.
won't necessarily be a problem. TheySome carriers now offer promotional
point out that some providers offerrates for two people that buy a long
policies that can cover an entireterm care package at the same time.
lifetime. A longer time frame usuallyThose are marketed as spousal discounts
means greater premiums. A lifetimeand can range between 15% and 25% off
policy can translate into extra costsregular premiums. And if you qualify as
when compared with short-term plansextremely fit and healthy candidates,
covering three- to five-years ofsome carriers will even add another 10%
long-term care.discount on top.
"That can defeat the whole purpose ofSome things to consider:
buying a policy that allows you to shareEach of the three options presents
benefits," says Neil Gholson, Presidentdifferent caveats. "People need to
of LTC Finical Solutions, inc..remember that the shared-care
To make sure you don't run out ofmarketplace is a fairly new phenomenon,"
benefits, Neil suggests at least foursaid Cheryl Matheis, a health strategist
years of coverage. The Consumers Unionat AARP. "They need to ask a lot of
senior policy analyst says that's basedquestions and carefully examine all of
on data showing nursing-home usethe details in each policy."
averages around 2.5 years in long-term1. Check the insurers' history of
policies.changing prices and policy conditions.
"Very few people spend more than fiveOnly a few carriers haven't hiked
years in a nursing home," Gholson said.premiums.
"So if you're going to get a long-term2. Shared long term care benefits likely
plan that shares care between spouses,will cost you slightly more than
look at a four-year term. Fewer yearstraditional long-term-care policies of a
could be a little shy, especiallysimilar term.
considering that policies can cover homeThe alternative is that if two people
as well as nursing home care."aren't sharing long-term-care insurance,
Best suited for shared care policiesthey'll probably need to buy more
might be couples that want to buyextensive individual policies to get the
shorter-term plans but still want somesame level of coverage. The big
flexibility to reach into their spouse'sadvantage to shared care is that you
pool of benefits, he added.reduce the term of policies.
2. Long term care partnership deals3. If you've got enough money, the best
Two years ago, Congress expanded to mostoption is always to buy separate
of the country a program that had beenlonger-term plans.
running for years in less than a handful4. If you're looking at a more
of states. It allows the total value ofaffordable alternative, then shared care
long-term-care policies to be countedis an option to at least consider.
against Medicaid requirements for5. If you choose a state partnership
drawing on personal assets to pay healthprograms need to note any loopholes may
bills.exist, Gholson says. Even buying enough
But different states have differentprivate care insurance to match asset
contingencies. For example, in New Yorklevels isn't a guaranteed solution.
consumers must purchase a long-term-care"Depending on where you live or move,
policy that covers at least three yearsthe different Medicaid eligibility and
in a nursing home and six years ofincome requirements in each state, the
home-based care. In return, the stategovernment might still be able to come
pledges not to go after any personalafter your assets in certain cases,"
assets once someone exhausts theGholson said.
benefits in their private policy, saysSpouses cutting health care costs can
Gholson.produce significant benefits with the
"So Medicaid care becomes a free benefitright amount of research. Contact a Long
without any strings attached," he added.Term Care Professional that represents
States such as California andseveral carriers to see what your
Connecticut use what's termedoptions are.
dollar-for-dollar protection. In those



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