Long Term Care Insurance Facts

#11 Did you know that it is relatively easy for a Federal employee to figure out if he/she is eligible to apply for this program? If you are a Federal employee and you're in a position that conveys eligibility to enroll in the Federal Employees Health Benefits Program (FEHB), then you are eligible to apply for enrollment in this program. It does not matter if you are actually enrolled in FEHB, only that you are eligible to enroll. And if you have any doubts about your eligibility for FEHB, your human resources office can help you.

There are only 2 exceptions — D.C. Government employees are not eligible to apply for enrollment in this program even if they are eligible for FEHB. And employees of the Tennessee Valley Authority ARE eligible to apply for enrollment in this program even if they are not eligible for FEHB. Of course, this "rule" doesn't apply to members of the uniformed services or others. We're just talking about Federal employees. We'll have "tips" for other eligible groups in later columns. In the meantime, you may want to read the section on eligibility in our proposed product design and the eligibility Frequently Asked Questions. (1/31/02)

#10 Did you know that 22 states allow either a deduction from your state taxes or a state tax credit for purchasing long term care insurance? Wonder why they allow these incentives? Because, for most people, buying long term care insurance is a GOOD thing to do! State tax deductions and credits help encourage people to buy the insurance. Take a look and see if your state is one of the 22. (11/23/01)

#9 Did you know that one of the most common long term care scenarios is for wives to become the primary caregivers for their husbands, only to find that they lack a source of care when their own long term care needs arise? Spouses of Federal employees and annuitants, and spouses of members and retired members of the uniformed services, are eligible to apply for coverage in the Federal Long Term Care Insurance Program (FLTCIP) in their own right, even if their spouses don't apply.

Be sure that your spouse is aware of the upcoming FLTCIP enrollment opportunity next year and that you both make an informed decision about your long term care insurance needs. (10/17/01)

#8 Do your parents know what they'll do if one or both needs long term care? Do they have a plan or insurance to cover the expense? Would they tell you if they did? Maybe they're counting on you, but you don't know it. It's worth a thought, and a talk. Consider other relatives as well, such as parents-in-law, unmarried brothers and sisters, and, of course, yourself and your spouse. Qualified relatives will be able to apply for coverage under the Federal Long Term Care Insurance Program. Talk to them now, so that you'll all be ready when the Program is offered next year. These conversations can be difficult, but if you wait until a long term care need arises, it will be too late. (10/1/01)

#7 According to the American Council of Life Insurers, many owners of long term care insurance policies bought their policies to provide financial security in retirement, rather than simply to cover a potential health risk. How do you view long term care? (9/17/01)

#6 Medicare and Long Term Care. Medicare is a Federal health insurance program for people who are age 65 or older, some people with disabilities under age 65, and people with End-Stage Renal Disease (permanent kidney failure requiring dialysis or a transplant). Medicare will cover the first 100 days of care in a nursing home if: 1) you are receiving skilled care, and 2) you enter the nursing home immediately following a hospital stay of at least 3 days. There are some deductibles and copays (meaning you have to pay part of the cost). Medicare also covers limited home visits for skilled care.

It's very important to realize a few things about Medicare's coverage of long term care:

most long term care is not skilled care,
most long term care does not take place in a nursing home,
most nursing home stays do not immediately follow a hospital stay,
most people who require care in their home usually need more or different types of care than Medicare covers, and
most people won't start Medicare coverage until age 65.

So don't count on Medicare to cover your probable long term care needs. Look for our materials about the new Federal Long Term Care Insurance Program next year. Be in control of your life and how you live it! (9/1/01)

#5 Medicaid and Long Term Care. Medicaid is a state-based program supplemented by Federal funds that acts as a safety net to provide health services to the poor and impoverished. Medicaid covers long term care services and might cover you if you meet your state's poverty criteria and receive care that meets your state's guidelines. Usually this means expending all but $2,000 of your assets and savings (except for perhaps your house and your car). It also means receiving care from a limited number of state-approved caregivers (mostly institutions like nursing homes) that are willing to accept Medicaid's payments. People that you wouldn't consider poor sometimes qualify for Medicaid by "playing the game" and "beating the system", usually with legal help. States react with more rules.

If you don't have much in the way of assets and income, Medicaid is probably your best bet for long term care. If you can afford long term care insurance, want to control the type and location of care that you receive, and aren't interested in (or don't want to count on) beating the system, the Federal Long Term Care Insurance Program deserves your attention. Be on the look out for our materials next year. Be in control of your life and how you live it! (8/15/01)

#4 Did you know that long term care services are expensive? The cost of one year in a nursing home can exceed $50,000 (and that's just room and board. It doesn't include the cost of drugs, incidental supplies, etc.). The cost of home care for only three 8-hour shifts per week can easily exceed $20,000 a year. Both of these costs can be significantly higher in high-cost areas. And that's before inflation! Paying for long term care can easily exhaust your savings. Buying long term care insurance can protect your savings. (8/1/01)

#3 Did you know that long term care is not just for senior citizens? Over 40% of people who are receiving long term care are under age 65. They may need continuing care due to a serious accident, a stroke, a brain tumor, multiple sclerosis, Parkinson's disease, etc. You can't always prevent your need for long term care, but you can protect your assets, preserve your choice of care, and reduce the burden on your family by buying long term care insurance. (7/23/01)

#2 Did you know that your health plan probably doesn't cover long term care services? Take a look at your health plan brochure. Chances are there are specific exclusions for nursing home care and extended or chronic care provided in the home. If you're enrolled in a Federal Employees Health Benefits (FEHB) plan, take a look at the "Not covered" blocks in sections 5(a) and 5(c) of your FEHB plan brochure. If you're like most people, the lack of coverage will surprise you. (7/10/01)

#1 Did you know that most long term care is not skilled care? Only 18% of long term care is nursing home care. Most long term care is home care, home health care, adult day care, assisted living facility care, etc. (7/1/01)