703 North Court Street
P.O. Box 446
Medina, Ohio 44258
(330) 725-4543
(800) 589-8333
Fax: (330) 723-2500
info@hunterins.com
office hours: 8:30-5 M-F
Evenings & Saturdays by appointment
Long-Term Care
Long-term Care Insurance helps pay for a variety of supportive services that assist people with health or personal needs that might result from a chronic disease, serious accident, sudden illness, or cognitive impairment such as Alzheimer’s disease. LTC services differ from traditional medical care in that their focus is not necessarily to improve the medical condition of an individual, but to maintain the individual’s quality of life. LTC services may be provided by a health care professional such as a nurse, a home health aide, or other personal care provider. Varying amounts and levels of care can take place in a variety of locations. This can range from a few hours or care per week in one’s home to around-the-clock care in a nursing facility. Medicare or other types of health insurance generally do not cover long-term care. LTC insurance policies vary greatly in the amount, scope, and service settings they cover.
What’s new in Long-term Care Insurance?
Starting in the fall of 2008, Ohio’s new Long-term Care (LTC) Partnership Plans establish an alliance between the private insurance industry and state government to help Ohioans prepare for future long-term care needs without depleting all of their assets to pay for care. With future demand for LTC services expected to rise, Ohioans need to plan ahead to ensure that the widest array and highest quality of services will be available to them.
How will the Long-term Care Partnership work?
States are required to develop Partnerships using the “dollar-for-dollar” model. For every dollar that an LTC Partnership insurance policy pays out in benefits, a dollar of personal assets can be protected (disregarded during the eligibility review) if the individual chooses to apply for Medicaid. (Medicaid, by way of review, is a health insurance program jointly administered and funded by the federal and state government that provides health-care services for low-income individuals. Medicaid eligibility is extremely complex and must be determined on a case-by-case basis by the applicant’s local department of social services.) As a result, LTC Partnership policyholders who apply for Medicaid coverage are able to maintain some level of assets (equal to the LTC insurance benefit paid) above the $2,000 Medicaid asset limit currently in place for eligibility purposes.
The Federal Deficit Reduction Act of 2005 renewed states’ authority to establish Long-term Care Partnerships and outlined specific requirements for Partnership policies. Partnership policies became available in Ohio starting September 1, 2008. Existing policies issued on or after August 12, 2002 may be eligible for exchange to Partnership plans. Those who currently own policies will be notified by the insurance carrier regarding their eligibility for exchange.
If you have questions about LTC insurance, please contact our office.
For More Information
For a more complete resource on Long Term Care Insurance see the Insurance Information Institute or contact us.