| Baby boomer couples cutting health care | | | | cases, authorities count the value of a |
| costs by pooling resources to reduce the | | | | private insurance policy to determine |
| cost of long term care premiums. Instead | | | | the amount of assets that are protected |
| of buying for one, advisers and analysts | | | | against pay-down requirements in |
| say you can sometimes slash premium | | | | Medicaid. |
| costs by approaching long term care | | | | It saves the states money because |
| insurance as a couple. | | | | they're shifting costs of long-term care |
| For those willing to shop around the | | | | to insurance companies. And it puts |
| following three strategies are worth | | | | fewer burdens than we currently have on |
| exploring: | | | | the entire Medicaid system. |
| 1.Shared care plans | | | | For individuals, such partnerships can |
| In general, sharing long-term policies | | | | limit the size of policies they've got |
| doesn't eliminate the need for both | | | | to buy. The trade-off is that if you buy |
| partners to buy separate plans. But | | | | less coverage than a state's threshold |
| unlike traditional policies, a special | | | | to qualify for Medicaid, you'll still |
| rider is tacked on to each to allow one | | | | wind 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 is | | | | state, you might want to buy enough |
| that if you need more than your current | | | | insurance to protect your entire |
| plan allows. But what happens if both | | | | portfolio in a partnership program," |
| eventually go over their allotted | | | | Gholson said. |
| amounts? | | | | 3. Ask insurance agents about discounts |
| If you've bought a contract with plenty | | | | on bundled purchases |
| of flexibility and terms that stretch | | | | This could be the simplest way to |
| over long periods, experts say that | | | | savings. |
| won't necessarily be a problem. They | | | | Some carriers now offer promotional |
| point out that some providers offer | | | | rates for two people that buy a long |
| policies that can cover an entire | | | | term care package at the same time. |
| lifetime. A longer time frame usually | | | | Those are marketed as spousal discounts |
| means greater premiums. A lifetime | | | | and can range between 15% and 25% off |
| policy can translate into extra costs | | | | regular premiums. And if you qualify as |
| when compared with short-term plans | | | | extremely fit and healthy candidates, |
| covering three- to five-years of | | | | some carriers will even add another 10% |
| long-term care. | | | | discount on top. |
| "That can defeat the whole purpose of | | | | Some things to consider: |
| buying a policy that allows you to share | | | | Each of the three options presents |
| benefits," says Neil Gholson, President | | | | different caveats. "People need to |
| of LTC Finical Solutions, inc.. | | | | remember that the shared-care |
| To make sure you don't run out of | | | | marketplace is a fairly new phenomenon," |
| benefits, Neil suggests at least four | | | | said Cheryl Matheis, a health strategist |
| years of coverage. The Consumers Union | | | | at AARP. "They need to ask a lot of |
| senior policy analyst says that's based | | | | questions and carefully examine all of |
| on data showing nursing-home use | | | | the details in each policy." |
| averages around 2.5 years in long-term | | | | 1. Check the insurers' history of |
| policies. | | | | changing prices and policy conditions. |
| "Very few people spend more than five | | | | Only a few carriers haven't hiked |
| years in a nursing home," Gholson said. | | | | premiums. |
| "So if you're going to get a long-term | | | | 2. 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 years | | | | traditional long-term-care policies of a |
| could be a little shy, especially | | | | similar term. |
| considering that policies can cover home | | | | The alternative is that if two people |
| as well as nursing home care." | | | | aren't sharing long-term-care insurance, |
| Best suited for shared care policies | | | | they'll probably need to buy more |
| might be couples that want to buy | | | | extensive individual policies to get the |
| shorter-term plans but still want some | | | | same level of coverage. The big |
| flexibility to reach into their spouse's | | | | advantage to shared care is that you |
| pool of benefits, he added. | | | | reduce the term of policies. |
| 2. Long term care partnership deals | | | | 3. If you've got enough money, the best |
| Two years ago, Congress expanded to most | | | | option is always to buy separate |
| of the country a program that had been | | | | longer-term plans. |
| running for years in less than a handful | | | | 4. If you're looking at a more |
| of states. It allows the total value of | | | | affordable alternative, then shared care |
| long-term-care policies to be counted | | | | is an option to at least consider. |
| against Medicaid requirements for | | | | 5. If you choose a state partnership |
| drawing on personal assets to pay health | | | | programs need to note any loopholes may |
| bills. | | | | exist, Gholson says. Even buying enough |
| But different states have different | | | | private care insurance to match asset |
| contingencies. For example, in New York | | | | levels 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 years | | | | the different Medicaid eligibility and |
| in a nursing home and six years of | | | | income requirements in each state, the |
| home-based care. In return, the state | | | | government might still be able to come |
| pledges not to go after any personal | | | | after your assets in certain cases," |
| assets once someone exhausts the | | | | Gholson said. |
| benefits in their private policy, says | | | | Spouses cutting health care costs can |
| Gholson. | | | | produce significant benefits with the |
| "So Medicaid care becomes a free benefit | | | | right amount of research. Contact a Long |
| without any strings attached," he added. | | | | Term Care Professional that represents |
| States such as California and | | | | several carriers to see what your |
| Connecticut use what's termed | | | | options are. |
| dollar-for-dollar protection. In those | | | | |