Author Topic: LTC insurance for Mom - prepping for call tomorrow with Agent  (Read 5438 times)

MayDay

  • Magnum Stache
  • ******
  • Posts: 4772
Re: LTC insurance for Mom - prepping for call tomorrow with Agent
« Reply #50 on: August 26, 2020, 01:24:52 PM »
Oh for Peet's sake!

It's Medicaid that will pay for LTC.

SimpleCycle

  • Handlebar Stache
  • *****
  • Posts: 1237
  • Location: Chicago
Re: LTC insurance for Mom - prepping for call tomorrow with Agent
« Reply #51 on: August 26, 2020, 01:29:14 PM »
Ok I've got a further development.
I am now under the impression Medicare does not pay for long term care.
My mom mentioned this today.

She said our plan of paying out of her assets and then switching over to Medicare would have worked back in the day perhaps, but Medicare does not pay for long term care. So I googled it. According to the screenshots in my attachments, sure enough, Medicare does not pay for LTC. So what say we now? Are we screwed - and should buy some LTC Insurance?

Medicare (health care for the elderly and disabled) does not pay for long term care.  Medicaid (health care for the poor) pays for long term care.  Over half of LTC in the U.S. is paid for using Medicaid.

In order to be eligible for Medicaid, you must have income and assets low enough to qualify.  Getting assets below the limit (typically $2k) is done by using her assets to pay for long term care.  Getting her income low enough is done through a process called spend down.

https://money.usnews.com/money/retirement/baby-boomers/articles/how-a-medicaid-spend-down-works

This all is complicated, but honestly if you are worried about long term care expenses, your best best is to consult with an elder care attorney to learn more about how the process works in your state and how it would work in your mother's situation.  Many people with LTC policies end up in spend down anyway, because their policies are not enough to cover the needed amount anyway.

Insurance is to protect against risk.  There are two risks here - the risk that your mom will need to spend all her assets to pay for LTC, and the risk that your mom won't have any money to pay for LTC.  LTC insurance is intended to protect her assets against the first concern, while Medicaid is social insurance to protect against the second risk.  If you concern is just paying for LTC, Medicaid is sufficient.

FrugalFisherman10

  • Bristles
  • ***
  • Posts: 380
    • Fly Fishing Photo Project
Re: LTC insurance for Mom - prepping for call tomorrow with Agent
« Reply #52 on: August 26, 2020, 02:05:05 PM »
Oh for Peet's sake!

It's Medicaid that will pay for LTC.
Frick I'm sorry ..yes that's right.

thanks you two for clearing me up



Sent from my iPhone using Tapatalk

iris lily

  • Magnum Stache
  • ******
  • Posts: 4495
Re: LTC insurance for Mom - prepping for call tomorrow with Agent
« Reply #53 on: August 26, 2020, 02:32:18 PM »
Oh for Peet's sake!

It's Medicaid that will pay for LTC.
Frick I'm sorry ..yes that's right.

thanks you two for clearing me up



Sent from my iPhone using Tapatalk

Medicare will pay for a short stint in a skilled nursing environment where the patient is actively being treated and improving. As in a hospital, it pays for skilled nursing and medical care. But thatís only for a short time. For my mom it was Iím thinking six weeks.

Patient is stable that it doesnít pay for care.