California is among at least 26 states that are introducing mandatory programs that put billions of public dollars into privately managed long-term care plans. The idea is to keep people in their homes longer and come up with alternatives to nursing homes.

Companies running the programs are promising profits for investors and savings for taxpayers.

But an article in the New York Times suggests there may be hidden pitfalls in the new programs.

It details a program in Tennessee which has been touted as a model. The article says the increasing costs of care plus the need to return profits to investors is squeezing the care being given. In many cases, care was denied.

In past years, severely debilitated people were put into nursing homes with the costs shared by the state and federal government under the Medicaid program. The new program gives such patients the choice of staying in their homes with daily help and then go to a nursing home only when absolutely necessary. Medicaid pays a fixed amount to a private insurance company to cover and coordinate the care.

The government saves money because the amount it pays is less than what it would have paid to a nursing home and the private company makes money because the amount it spends on the patient is less than it is being paid by the government.

In the case cited in the article, a patient was summarily denied care by the insurer once he developed dementia. He was no longer deemed eligible for nursing home care under Medicaid because the rules for admission were tightened up as part of the new program.

The Medi-Cal program in California is on the verge of changing. It’s important to revisit and review your existing planning for long term care.

The post Pitfalls To Privately Run Long-Term Care Programs appeared first on Desert Law Group | Kimberly T. Lee.

The costs of long-term-care can be astronomical and would quickly wipe out one’s savings.  Many boomers are looking to buy long-term-care insurance to cover that risk. But many are finding out that they didn’t really understand what they had purchased.

According to an article in the Seattle Times, when it comes to buying long term care insurance, it’s best that you do your homework. If you would like a copy of our “Guide to Purchase Long-Term-Care Insurance,” please let me know.

(Photo credit: cseeman)

Estimates are that 9 million Americans now aged 65 or older will need some care over an extended period. And the average cost of a private room in a nursing home is about $84,000 a year and often as much as $120,000 in some areas. Assisted living can cost about half of that much. And in home care can cost about $20 an hour or more.

According to the article, a lot of people who purchased the policies are having a difficult time getting their benefits. And, in many cases, the policyholders are too old or ill to take on the task of fighting the insurance companies’ denial of claims.

Still, the article recommends long-term-care insurance but only from a reputable company. It’s important that you work with a qualified long-term-care professional to help you understand the finer details of various policies and your options. If you have an existing policy, it’s important to understand what it covers and doesn’t, before you need it. Please call our office if you would like a recommendation of a professional advisor to assist you.

The post Beware When Shopping for Long-Term-Care Insurance appeared first on Desert Law Group | Kimberly T. Lee.