subject: Long Term Care and Government Assistance [print this page] Long Term Care and Government Assistance Long Term Care and Government Assistance
For people who do not possess the financial resources in sustaining long term care, there are still reasons not to lose hope. Nowadays, LTC rates and premiums continue to rise which has become a sturdy predicament for every family in the US. Good thing is LTC options such as government assistance are made available as means for these individuals to acquire the care they will need in the future.
LTCi has become too costly resulting to millions of Americans' limited access to LTC services there is insufficient money to afford the kind of health care services they require. That's why; there have been recent modifications and developments in the US federal tax law which allow a portion of LTCi premium to be tax-deductible. This specific amount of deduction increases in accordance with the insured person's age.
Government-supported programs such as Medicare and Medicaid are also made available as aids in this rising concern on long term care insurance. However, these programs do not offer full coverage and only provide assistance under certain restrictions as well. Thus, understanding each and every benefit these programs cover plays a key role in identifying which among its remuneration apply.
Medicare is a program administered by the Social Security Administration. It is known for providing financial assistance to seniors 65 years of age and older and to the disabledfor medical and hospital expenses. It may cover a month or two of home health care after a stay in the hospital. But, normally, its benefits are typically limited and do not cover LTC expenses as well.
Medicare does not cover unlimited LTC. It does not offer assistance for those who need to go into nursing homes indefinitely because they are disabled or who can no longer take care of themselves. And, it does not cover assisted living or adult day-care. It covers short-term recovery from an illness or injury.
While with Medicaid, a federal program too, also provide assistance to individuals eligible to it but the criteria to qualify for the assistance provided are very strict. In order to attain eligibility, a person must meet the guidelines set by Medicaid and must demonstrate financial need for assistance. In fact, most people should exhaust most or all their savings and assets before becoming eligible for benefits.
Medicaid is funded and administered by a federal-state partnership. Although there are federal requirements for Medicaid, states have a high degree of flexibility in designing their program. States have the authority to set eligibility rules, determine the benefits and services to cover, and set payment rates.
Records show that in 2003, about two-thirds of the residents rely on Medicaid to finance at least part of their care. For the majority of residents, long-term care insurance is prohibitively expensive. To top it off, the pre-existing conditions often prevent them from obtaining coverage for which they might qualify.
