Benefit Resources Group

Long-Term Care Insurance- Do I Really Need It?

By now, most Americans have heard about long-term care insurance. However, many people have not purchased any form of protection. The scariest aspect is that protection hasn't been purchased because many believe that other health insurance programs will pay.

According to numerous polls, most Americans believe that long-term care will be paid by Medicare, Medicaid (MediCal) or private health insurance. These misconceptions will continue to prove financially disastrous to those who do not know the facts.

First of all, Medicare will only pay for a maximum of 100 days and only while the care is restorative (condition is showing improvement). Medicare will not pay for any caregiver (unskilled) services or assistedliving facility care.

Medicaid, or Medi-Cal as it is known in California, does pay for a great deal of custodial care, but only for the indigent who need it the most. The criteria for Medicaid eligibility are already very difficult for most Americans to satisfy, and imminent legislation will make eligibility even more difficult in the future.

Finally, Medigap and private health insurance are also mistakenly perceived as a means to cover long-term care expenses.

However, this additional insurance, although important for paying healthcare expenses, does not pay for any kind of custodial or caregiver care.

Once again, as with Medicaid, the care must be skilled and restorative in order to be covered under any private health insurance policy.

As most Americans are learning the hard way, long-term care insurance is not duplicate coverage.

It is insurance that is customized for each unique individual. It is an important part of one's retirement portfolio and should not be ignored by any responsible American.

For additional information about long-term care, call David Comer at (800) 471-6588 or e-mail dcomer@brgltc.com.