Baby Boomer Couples Cutting Health Care Costs

Baby boomer couples cutting health care costs				of a private insurance policy to determine
by pooling resources to reduce the cost of				the amount of assets that are protected
long term care premiums. Instead of buying				against pay-down requirements in Medicaid.
for one, advisers and analysts say you can
sometimes slash premium costs by approaching				It 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 the				currently 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 plans				trade-off is that if you buy less coverage
				than a state's threshold to qualify for
In general, sharing long-term policies				Medicaid, you'll still wind up dipping into
doesn't eliminate the need for both partners				your 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 into				you 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 plan				3. Ask insurance agents about discounts on
allows. But what happens if both eventually				bundled 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 long				Some carriers now offer promotional rates for
periods, experts say that won't necessarily				two people that buy a long term care package
be a problem. They point out that some				at the same time.
providers offer policies that can cover an
entire lifetime. A longer time frame usually				Those are marketed as spousal discounts and
means greater premiums. A lifetime policy can				can range between 15% and 25% off regular
translate into extra costs when compared with				premiums. And if you qualify as extremely fit
short-term plans covering three- to				and 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 buying				Some things to consider:
a policy that allows you to share benefits,"
says Neil Gholson, President of LTC Finical				Each 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 of				strategist at AARP. "They need to ask a lot
coverage. The Consumers Union senior policy				of questions and carefully examine all of the
analyst says that's based on data showing				details 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 years				carriers haven't hiked premiums.
in a nursing home," Gholson said. "So if
you're going to get a long-term plan that				2. Shared long term care benefits likely will
shares care between spouses, look at a				cost you slightly more than traditional
four-year term. Fewer years could be a little				long-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 be				probably need to buy more extensive
couples that want to buy shorter-term plans				individual policies to get the same level of
but still want some flexibility to reach into				coverage. 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 deals				3. If you've got enough money, the best
				option is always to buy separate longer-term
Two years ago, Congress expanded to most of				plans.
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-care				alternative, then shared care is an option to
policies to be counted against Medicaid				at 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 different				says. Even buying enough private care
contingencies. For example, in New York				insurance to match asset levels isn't a
consumers must purchase a long-term-care				guaranteed 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 go				different Medicaid eligibility and income
after any personal assets once someone				requirements in each state, the government
exhausts the benefits in their private				might still be able to come after your assets
policy, says Gholson.				in certain cases," Gholson said.

"So Medicaid care becomes a free benefit				Spouses 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 use				Professional that represents several carriers
what's termed dollar-for-dollar protection.				to see what your options are.
In those cases, authorities count the value

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Baby Boomer Couples Cutting Health Care Costs