Federal Long Term Care versus LTCI from Private Companies

what-is-long-term-care-insuranceDue to the cost of long term care insurance (LTCI), a lot of people deprived themselves from having it. They think LTCI is so costly and that they cannot handle paying its premiums. Thus, these people turn to federal long term care for their long term care needs.  Federal long term care is actually a general term encompassing government programs designed to help citizens acquire long term care services. It includes Medicaid, Medicare and other more.

On the other hand, there are some misconceptions about federal long term care. Most people believe that these government programs will help them with all concerning long term care needs. This is not true. Medicare, for instance, does not cover custodial care. Basically, they only offer rehabilitative care. Moreover, before they can offer you the service, you have to undergo an assessment first. They need to know if you are qualified for the service. This is usually determined by set of qualifications and criteria they have in mind. Mind you, getting approved for this kind of federal long term care may be difficult.

Since Medicare’s service is limited, you might think that Medicaid is the answer to your prayers. Yes, Medicaid is a wonderful government program and it covers custodial care. However, it might not be a perfect choice for you. This is because Medicaid will only pay for your long term care needs with their provided nursing facilities. In other words, you do not have the choice in which facility you will be assigned.  You might be assigned somewhere far from your family’s location. Moreover, this benefit is only available for those indigent people.  They are strict with their rules about financial status. So when you are not one of the indigent people, your application might be rejected.  If you really want to pursue getting approved for their program, you might need to spend down your money which may be a wrong move.

Why will you spend your money just to be qualified for their program with limited coverage if you can get LTCI with extensive coverage? LTCI will let your savings to stay intact. You do not need to spend all your savings just to be approved for the service you need. A little portion of your savings will do. Additionally by having LTCI, you do not need to suffer being away from your family as you have the opportunity to choose an in-home care service if you prefer it. Imagine how much you will save with getting LTCI than pursuing for Medicaid.

On the other hand, you have to be careful when you consider getting LTCI than the service of federal long term care.  You have to plan it so you can come up with a perfect choice. List down what your needs are and check if a certain LTCI have it. This is a big decision you have to make. There might be no turning back so you have to be sure that it is the right LTCI for you before you sign any contract with an insurance company.





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  1. #1 by Brian So on February 5, 2014 - 5:55 pm

    Hi Samantha, thanks for your comment on my blog. Unfortunately, it showed up in the WordPress.com dashboard and not the WordPress.org one which I have moved to since publishing that post, so your comment isn’t visible.

    I agree that longer life, combined with poor health in the late stages of life, are the major contributing factors to needing long-term care insurance.

    It’s interesting to see the differences between government subsidies in US and Canada. It’s actually a provincially regulated program here so whether or not you qualify for subsidies depends on which province you live in.

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