You know when the powers-that-be on Capitol Hill start seeing the effects of financial strain in their own lives from long-term care service needs, research is done and laws are made. We have now seen the beginning of the research being done.
In a recent Forbes article from December 3, 2015, we learned that The Urban Institute and Milliman, Inc., a research group and actuarial firm, respectively, led the charge on developing complex statistical models to answer the questions about future long-term care insurance in the US.
According to the article, the average cost for a typical male and typical female requiring long-term care services is 91,000 and 182,000 respectively. Considering under 8% of people in the US actually buy long-term care insurance and either pay the costs out of pocket or fall back on welfare and Medicaid services, decision makers are going to take action like they have with the Affordable Care Act.
Medicaid cannot continue to cover the costs of long-term care services for the long term, which has now eclipsed $146 billion ($146,000,000,000.00).
“Most don’t understand the risk they face,” said Debra Whitman, chief public policy officer for AARP, about the large majority of Americans who do not have long-term care insurance. “Many believe mistakenly that Medicare will pay for long-term services and supports,” Whitman added.
Several options were discovered, but the most obvious one for policy makers was cited when the article said, “Mandatory programs would cost less for Medicaid. If the major aim is to reduce Medicaid costs, the comprehensive and back-end mandatory programs would be most beneficial”.
If the public or policymakers take action on the two organizations findings, that remains to be seen. The good news is, before we are forced to take policies with cut benefits or attempted one-size-fits-all coverage, we can at least get the facts about long-term care insurance and know what the current options and prices are.
This can be done quick and easy when you speak to a California Long Term Care Insurance Services specialist about your rights and options under the current programs. Long-term care insurance can be affordable when you take the time to plan your needs.
Fill out the form to gthe right of this page and contact your CLTC specialist today!