Long Term Care Insurance Kansas

Long-term care issues can be complex and confusing. With so many options, services and settings in which care is given, many people delay learning about the issues until they are personally affected. Unfortunately, that is likely to be the time when you are under the most pressure to make a decision, and when time is too short to carefully weigh your options.

Because these long-term care issues deserve your careful attention, don’t wait until it’s too late to find out all you can about this important health care alternative. Don’t wait any longer to find out important information!

What is Long-Term Care?

Long-term care is the day-in, day-out assistance you might need if an illness or disability lasts a long time and leaves you unable to care for yourself. This may or may not include a nursing home stay. In other words it is a continuum of services that can be provided in a variety of settings ranging from one’s own home, assisted living facility, adult day care facility or a nursing home. Long-term care covers a broad spectrum of care and services ranging from basic personal care to medical care.

Long Term Care Insurance Kansas Shopping Tips

  • Shop around for an insurance agent and an insurance company–ask friends, family or neighbors if they recommend their insurance agent or company.
  • Ask insurance agents which insurance company’s products they sell; most agents only sell products from a few companies. Compare several different products from several different insurance companies. You might need to talk with several different agents.
  • Carefully compare the benefits and restrictions between policies.
  • Most LTC insurance premiums increase over time. Carefully evaluate whether premium payments over a long period could be a financial hardship.
  • Never pay insurance premiums in cash; do not make checks payable to the insurance agent.
  • Read your policy carefully and ask follow up questions.
  • Use your 30-day “Free Look” period to return a policy for a full refund if you are not satisfied!
  • Understand what a Long Term Care Partnership (LTCPP) policy is, how it differs from non-LTCPP policies, and whether it is affordable for you.

Important Points: Long Term Care Insurance Kansas

  • Partners in this program are The State of Kansas, through the Kansas Insurance Department, the Kansas Dept. of Aging and the Kansas Health Policy Authority; and insurance companies in Kansas selling long-term care insurance and certified in the Long-Term Care Partnership Program.
  • Asset protection, not income protection, is a key component to the program. For every one dollar of long-term care insurance paid, one dollar of personal assets will be protected if the policyholder ever needs to apply for Medicaid services. For example, if you have a $100,000 long-term care policy, once those policy benefits have been exhausted, under the program you can protect $100,000 of your assets if you qualify and then receive Medicaid benefits.
  • The Deficit Reduction Act of 2005 allowed all states the option of certifying partnership policies, provided the policies:
  1. Met specified criteria for federal tax qualification,
  2. Identified consumer protection provisions (from the National Association of Insurance Commissioners Model Act), and
  3. Provided inflation protection (those purchasers under 61, compound annual inflation protection; those 61-76, some level of protection; and those 76 and older, inflation protection may be offered but not required).
  • Insurance companies with approved long term care insurance Kansas policies that meet the three criteria are qualified under the program.
  • The average stay in a long-term care facility is 2.5 years.
  • In Kansas, the average cost per day in a long-term care facility is $129; the yearly average is more than $47,000. Nationwide, the yearly cost is approximately $75,000. This is expected to double by 2018.
  • Medicaid eligibility is not automatic; state income and eligibility criteria come into play once policy benefits have been exhausted.
  • Tax-qualified plans from companies listed in the Kansas Insurance Department’s Long-Term Care Shoppers Guide may have Partnership Program policies. Check with your local insurance agent for details.
  • The National Association of Insurance Commissioners recommends that agents and brokers selling long-term care insurance in Kansas be required to complete 8 hours of training initially, with a follow-up 4 hours every two years.

 What is the Long-Term Care Partnership?

The Long-Term Care Partnership Program is a public/private cooperative program that allows states to be designated as Partnership states under the Deficit Reduction Act of 2005. Insurance policies must meet the state and federal Partnership requirements.

People who purchase qualifying long-term care policies, after depleting their insurance benefits, may still qualify for Medicaid, provided they meet all other Medicaid eligibility criteria.

The Long-Term Care Partnership program provides dollar-for-dollar asset protection. Each dollar that your Partnership policy pays out in benefits entitles you to keep a dollar of your assets if you ever need to apply for Medicaid Services.

What is Medicaid?

Medicaid is the federal/state program that provides services to low-income individuals. These services include payments for long-term care in nursing homes or assisted living if a person meets the eligibility requirements of the state where they reside.

Why consider a policy?

For most people, the benefits of their private Partnership insurance policy will provide all the care they will ever need. But, because of the unique asset protection feature, you won’t have to impoverish yourself if you run out of insurance benefits and still need care. Protected assets are not considered in determining Medicaid eligibility and estate recovery.

What does a Partnership Policy cost?

Each insurance company offering Partnership policies has its own premium rates. However, the younger you are when you purchase coverage, the lower your annual premium will be. That is a good reason to buy now rather than waiting.

Partnership long-term care insurance policies are only marketed by licensed insurance professionals who have completed the training required by the State of Kansas.

SOURCE: Kansas Partnership for Long-Term Care

The State of Kansas recommends:

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