subject: More Pennsylvanians Need Long Term Care [print this page] Studies show seven out of 10 elderly people in Pennsylvania have not planned their healthcare needs yet. This is alarming as the cost of care in the said state is not a joke. Through the Pennsylvania long term care partnership program, they can still manage to clinch a policy that will cover their future healthcare expenses and protect their finances at the same time.
Pennsylvania happens to be one of the most expensive states to grow old in. If youre a single senior citizen, better secure a good plan for your future as the rates of long term care (LTC) facilities here are soaring.
At present the average annual rate of a private nursing home room in Pennsylvania based on Genworth Financials 2011 Cost of Care Survey is $96,725. Imagine the impact of this cost to your finances. Unless you are expecting to receive over $2-M upon retirement, it is necessary to have a concrete LTC plan.
One of the options offered to Pennsylvanias residents is the partnership program. This is a joint project between private insurance companies and various state government agencies which aims to promote the benefits of a long term care insurance (LTCI) policy.
Through an LTCI policy an individual can receive care wherever he wishes, but unfortunately, the price of this kind of insurance product continues to scare people away. Only those individuals in lucrative jobs have managed to secure an LTCI policy while others have resigned their fate to Medicaid.
Pennsylvania Long Term Care Partnership Plans
Medicaid is beneficial if used as a supplement to ones LTC plan. If you are thinking of relying on it alone for your future LTC expenses, then youre only exposing yourself to low quality care.
Since Medicaid started restructuring its eligibility system, its beneficiaries in nursing homes have been moved back to their homes because the said federal health insurance program is cutting down on nursing home costs.
Now if you are predisposed to some kind of genetic disease such as diabetes, hypertension, or heart diseases and you strongly believe that you will require nursing home care in the future, you wont get that from Medicaid.
By purchasing a partnership qualified LTCI policy, you can settle for a three-year maximum benefit period and should you require ongoing care after having exhausted your benefits, you can apply to Medicaid.
Just like in other states, Pennsylvanians who wish to acquire Medicaid benefits should spend down their assets first up to the required asset limit of Medicaid. With a partnership certified policy, though, you are exempted from this rule because partnership qualified policies in Pennsylvania feature a dollar-for-dollar asset protection.
Simply put, an LTCI policy that complies with Pennsylvanias partnership program will allow the policyholder to exempt the total amount of his assets that is equivalent to his maximum benefit amount should he apply for Medicaid in the future.
For example, a policy that stipulates a maximum benefit amount of $300,000 will allow the policyholder to exempt his assets worth $300,000 in case he applies for Medicaid assistance after using up his benefit amount.
Theres more to benefit from a Pennsylvania long term care partnership plan. To find out what these are, contact an agent who is affiliated with top LTCI providers.
