Take good care of your baby


Baby Boomer Couples Cutting Health Care Costs

Baby boomer couples cutting health care costsof a private insurance policy to determine
by pooling resources to reduce the cost ofthe amount of assets that are protected
long term care premiums. Instead of buyingagainst  pay-down  requirements  in Medicaid.
for one, advisers and analysts say you can
sometimes slash premium costs by approachingIt saves the states money because they're
long  term  care  insurance  as  a  couple.shifting costs of long-term care to insurance
companies. And it puts fewer burdens than we
For those willing to shop around thecurrently have on the entire Medicaid system.
following three strategies are worth
exploring:For individuals, such partnerships can limit
the size of policies they've got to buy. The
1.Shared  care  planstrade-off is that if you buy less coverage
than a state's threshold to qualify for
In general, sharing long-term policiesMedicaid, you'll still wind up dipping into
doesn't eliminate the need for both partnersyour  savings.
to buy separate plans. But unlike traditional
policies, a special rider is tacked on to"If you live in a dollar-for-dollar state,
each to allow one spouse to dip intoyou might want to buy enough insurance to
another's  benefits.protect your entire portfolio in a
partnership  program,"  Gholson  said.
The main advantage of shared coverage is that
if you need more than your current plan3. Ask insurance agents about discounts on
allows. But what happens if both eventuallybundled  purchases
go  over  their  allotted  amounts?
This  could  be  the simplest way to savings.
If you've bought a contract with plenty of
flexibility and terms that stretch over longSome carriers now offer promotional rates for
periods, experts say that won't necessarilytwo people that buy a long term care package
be a problem. They point out that someat  the  same  time.
providers offer policies that can cover an
entire lifetime. A longer time frame usuallyThose are marketed as spousal discounts and
means greater premiums. A lifetime policy cancan range between 15% and 25% off regular
translate into extra costs when compared withpremiums. And if you qualify as extremely fit
short-term plans covering three- toand healthy candidates, some carriers will
five-years  of  long-term  care.even  add  another  10%  discount  on  top.
"That can defeat the whole purpose of buyingSome  things  to  consider:
a policy that allows you to share benefits,"
says Neil Gholson, President of LTC FinicalEach of the three options presents different
Solutions,  inc..caveats. "People need to remember that the
shared-care marketplace is a fairly new
To make sure you don't run out of benefits,phenomenon," said Cheryl Matheis, a health
Neil suggests at least four years ofstrategist at AARP. "They need to ask a lot
coverage. The Consumers Union senior policyof questions and carefully examine all of the
analyst says that's based on data showingdetails  in  each  policy."
nursing-home use averages around 2.5 years in
long-term  policies.1. Check the insurers' history of changing
prices and policy conditions. Only a few
"Very few people spend more than five yearscarriers  haven't  hiked  premiums.
in a nursing home," Gholson said. "So if
you're going to get a long-term plan that2. Shared long term care benefits likely will
shares care between spouses, look at acost you slightly more than traditional
four-year term. Fewer years could be a littlelong-term-care  policies  of  a similar term.
shy, especially considering that policies can
cover  home  as  well  as nursing home care."The alternative is that if two people aren't
sharing long-term-care insurance, they'll
Best suited for shared care policies might beprobably need to buy more extensive
couples that want to buy shorter-term plansindividual policies to get the same level of
but still want some flexibility to reach intocoverage. The big advantage to shared care is
their  spouse's  pool  of benefits, he added.that  you  reduce  the  term  of  policies.
2.  Long  term  care  partnership  deals3. If you've got enough money, the best
option is always to buy separate longer-term
Two years ago, Congress expanded to most ofplans.
the country a program that had been running
for years in less than a handful of states.4. If you're looking at a more affordable
It allows the total value of long-term-carealternative, then shared care is an option to
policies to be counted against Medicaidat  least  consider.
requirements for drawing on personal assets
to  pay  health  bills.5. If you choose a state partnership programs
need to note any loopholes may exist, Gholson
But different states have differentsays. Even buying enough private care
contingencies. For example, in New Yorkinsurance to match asset levels isn't a
consumers must purchase a long-term-careguaranteed  solution.
policy that covers at least three years in a
nursing home and six years of home-based"Depending on where you live or move, the
care. In return, the state pledges not to godifferent Medicaid eligibility and income
after any personal assets once someonerequirements in each state, the government
exhausts the benefits in their privatemight still be able to come after your assets
policy,  says  Gholson.in  certain  cases,"  Gholson  said.
"So Medicaid care becomes a free benefitSpouses cutting health care costs can produce
without  any  strings  attached,"  he  added.significant benefits with the right amount of
research. Contact a Long Term Care
States such as California and Connecticut useProfessional that represents several carriers
what's termed dollar-for-dollar protection.to see what your options are.
In those cases, authorities count the value



1 A B C 54 55 56 57 58 59 60 61 62 63 65 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 94 95 96 97 98 99 100