It’s been getting tougher to qualify for Medicaid, especially for people who choose to impoverish themselves in order to become eligible. While the gate is likely to be shut even tighter in the future, it’s crucial to understand if you’re entitled to these benefits before you decide to buy a policy. The Eldercare Locator (800-677-1116) can put you in touch with state or local agencies on aging, where you can get an explanation of your state’s Medicare and Medicaid rules. You can pay an attorney or financial planner who specializes in the concerns of the elderly to help you tailor insurance coverage around any benefits you qualify for. Call the National Academy of Elder Law Attorneys (602-881-4005) or the International Association for Financial Planning (800-945-4237).
For information on local resources, including home and adult day care, turn to your state agency on aging, the National Association for Home Care (202-547-7424) or the National Council on Aging(202-479-1200): You can hire a care manager to help you assemble the array of services that fit your needs. To find one, call the National Association of Professional Geriatric Care Managers (602-881-8008). Residents of New York, Indiana, Connecticut and California should investigate their state’s special arrangements for purchasers of long-term-care insurance. To encourage people to bear some of the cost of their own care, these states allow buyers to qualify for Medicaid without dumping all of their assets.
The two best sources of information on selecting a long-term-care policy are United Seniors Health Cooperative (202-393-6222) in Washington, D.C., and the National Association of Insurance Commissioners (120 West 12th Street, Kansas City, Mo. 64105). United Seniors has a selection of excellent booklets. “Long-Term Care” is $11.50, and the extremely comprehensive professional guide “Long Term Care Insurance” is $41. Write to the NAIC for a free copy of “Shopper’s Guide to Long Term Care Insurance.” Every state has an insurance-counseling program to help you evaluate your options. Ask your state insurance department or its department on aging how to reach it.
A final bit of advice: find an insurance agent who’s independent and specializes in selling long-term-care insurance-not a family agent. “I have a license in life and health insurance, and when I took the exam there was not one question on long-term care,” says Priscilla Itscoitz, manager of United Seniors’ counseling program. Agents tied to a particular insurer can often sell policies from two or three other companies, but they get a higher commission from their key company. Ask state insurance counselors, an elder-law attorney or a consumer group for the names of independent agents.
Security, at a Price Premiums for long-term-care insurance can be exorbitant if you sign up too late. For a $100-a-day benefit and a five-year policy, rates in most states are as follows:
COVERAGE STARTS AT: COMPANY AGE 50 AGE 60 AGE 70 John Hancock $829 $1,310 $2,507 Travelers 810 1,374 2,753 CNA 722 1,091 2,173
RATES CITED ARE FOR A NONSMOKER WITH NO MAJOR HEALTH PROBLEMS, NOTE: THESE POLICIES AREN’T EXACT pARALLELS; RULES AND BENEFITS MAY VARY.
