Financing long-term care should be approached with the same through and preparation as any other major investment. Before signing a contract with a nursing home, you should: Obtain, in writing, what your basic charges will be. Discuss the fee structure with the facility administrator. Ask about daily rates and extra charges for services not covered. Ask about secondary insurance billing responsibilities (will you need to submit them, or does the nursing home?) Ask about Veteran's benefits and Medicare/Medicaid coverage. Find out if advanced payments will be returned if the resident leaves the home. Make sure you have copies of all payment arrangements. It is important that you know the government provides little financial assistance for nursing home care unless the patient is impoverished and qualifies for Medicaid. Most health insurance policies do not cover the costs of long-term care. You should consult your facility administrator or a financial consultant to determine how you and/or your loved one will cover the costs. Options for paying for nursing home care: Personal funds (private pay) Social Security payments Medicare/Medicaid Assets in escrow or as an endowment Assistance from private organizations (veteran's groups, trade unions, etc.) Medigap policy (Medicare Supplement Insurance) Long-term care insurance Long-term care insurance Because the cost of long-term care can be

Medicare Medicare is the health insurance program for the elderly and is administered by the U.S. Department of Health and Human Services. It is a federal program for: People age 65 and over; or People disabled for at least two years; or People suffering from chronic kidney disease Under certain conditions, Medicare covers the first 20 days of care in a skilled nursing facility. For the 21st through the 100th days, the beneficiary must share the cost of care by paying a nationally set rate, which changes yearly. In 2002, coinsurance payment was just over $101 per day. Medicaid Medicaid is the federal and state financed assistance program for needy and low-income individuals of all ages. Sates design their own programs within broad federal guidelines. To get Medicaid help for nursing home care, the assets of the person needing this help must be $1,500 or less (an unmarried individual). All Medicaid recipients must be approved by the Indiana Pre-Admission Screening Process to receive nursing home coverage. Long-term care insurance Long-term care insurance offers a more viable solution to paying for long-term care costs while preserving personal savings. However, due to lack of public awareness about long-term care and who pays for it, long-term care insurance currently pays only two percent of national nursing facility costs.

quite expensive, it is important to plan ahead. Unfortunately many people unexpectedly end up spending their life savings paying for long-term care.

Long-term care insurance is an excellent way to provide for your future long-term care needs, while protecting your current financial assts. This insurance helps cover the cost of nursing home care, in-home care, and care provided in the community, such as adult day care. All policies that offer asst protection must meet the Indiana Long Term Care Program requirements, which means all policies must:

You should also be aware that Medicare and supplemental policies (including Medigap insurance) offer only limited long-term care coverage. This is another reason that Indiana's Long Term Care Program can be so vital in protecting your financial assets.

The Long Term Care Program is administered by the Indiana Family and Social Services Administration, in conjunction with the Indiana Department of Insurance.

For more information and a list of private insurance carriers who offer long-term care insurance policies, contact the Indiana Long Term Care Program by calling (317) 233-1470. You may also contact the Senior Health Insurance Information Program (SHIIP) by calling 1-800-452-4800.

Information from the Indiana Long Term Care Program

Financial Independence. If you have it, don't lose it.

 

Indiana Long Term Care Insurance Program policies (also known as Indiana Partnership policies) provide a unique State-added benefit not found in other long-term care insurance policies. With one of these policies, you can protect your life savings, and prepare for your future long-term care needs.

If you are in relatively good health, and over age 45 you should consider purchasing an Indiana Partnership policy.

This insurance coverage is less expensive the younger you are when you buy it. For example: someone purchasing $175,000 of Indiana Partnership long term care coverage (including benefits for both facility and at-home care) at age 45 might pay annual premiums of about $800, compared to premiums of more than $4,500 per year if purchased at age 75.

Taking small steps now will give you BIG returns later, such as peace of mind, financial independence, protected assets, and real choice when it comes time for needing long term care.

Visit the Indiana Long Term Care Insurance Program website today at http://www.longtermcareinsurance.in.gov/.

Or call 1-866-234-4582 or (317) 233-1470 for a free packet of information.