State Requires Urgency in Long Term Care Planning

Only 10% the elderly population can confidently face the high cost of long term care by state because they have secured a long term care insurance (LTCI) policy. Others who were probably banking on the Community Living Assistance Services and Supports Act or CLASS Act, have to treat their future health care needs with urgency as the government does not have a clear plan for anyone at the moment.

Prior to the birth of the CLASS Act, which is part of the Affordable Care Act, everybody in the country was egged on investing in LTCI because this is the only sure-fire way that one can receive quality care in the future without depleting his assets.

No one can ignore the soaring cost of care in every part of the country. In fact, countless families have lost their homes to the long term care (LTC) expenses of their loved ones. In the end, many still resorted to Medicaid.

This federal health insurance program which is state regulated is not a bad thing to look at if it will only be considered as a supplemental LTCI but if everybody will rely solely on it, don’t be surprised if its funds will dry up in less than five years.

Frankly speaking, Medicaid should not be an option for LTC because this insurance program was primarily designed for individuals and families with a monthly income that is below the poverty level. So if you’ve had good earnings in the past then all of a sudden you would deplete your assets just so you could qualify for Medicaid, that’s a clear indication of negligence.

Cost of Long Term Care by State

If you’re planning to leave your current state of residence for another upon retirement, you can cross out Alaska from your list of options. This is a forewa
ing as the cost of care in this state is unthinkable.

At present, elderly Alaskans who are receiving care in nursing homes pay a median annual rate of $227760, an amount that can already cover a three-year stay in nursing homes situated in Georgia, South Carolina, Kentucky, and other states in the southern and western regions of the country.

Missouri happens to have the lowest annual rate for nursing homes at $52,925, while Alabama offers lower rates for home health care compared to others.

No matter where you decide to live in the future, you’ll be compelled to pay out a lot of money for LTC should you end up needing it regardless if it’s in a nursing home, assisted living facility or in the confines of your home. You can, however, spare yourself from shouldering the high cost of care if you will formulate an effective plan for your future health care requirements.

LTC specialists are offering a lot of good options that you can start looking into. Among these are reverse mortgages, annuities, 401(K), and LTCI policies.

Just don’t discount inflation from your plan because every year the cost of long term care by state increases.