Long Term Care
Long-term care (LTC) insurance is coverage that provides Home-Based Care, Facility-Based Care for individuals .
Long term care insurance- Jas Insurance Group, LTC is any of a wide range of ongoing services and support systems designed to help individuals perform self-care when they are unable to do so themselves. It can be something as simple as one spouse helping another out of bed at home, or it can involve providing round-the-clock medical care to a chronically ill patient in an institutional facility where the individual lives full time. Long-term care can also be anything in between these two extremes. For example, it can include:
In addition to growth in demand, the cost of long-term care services has also been increasing. Following are national averages for various types of long-term care. Though actual costs vary considerably by region and by provider, these figures provide some idea of what costs are, and more importantly, the cost trend for various types of care. Note that nursing home costs are rising faster than costs for long-term care services delivered in the home.
According to the Genworth 2021 Cost of Care Survey, the national median costs for long-term care were as follows:
|Type of Service||Current Annual Cost|
|Home health aide services||$55,000|
|Adult day care health services||$19,200|
|Assisted living facility||$51,600|
|Semi-private room/nursing home||$94,000|
|Private room/nursing home||$106,000|
Addressing the need for long-term care presents many challenges:
Long-term care insurance answers these challenges in a way that few other options do. As with other forms of insurance, long-term care insurance deals effectively with cost, unpredictability and the transfer of risk and financial responsibility. That’s because the event that creates the need also creates the funds to address the need.
At one time, if an individual applying for Medicaid was married, both the individual and his or her spouse had to be impoverished to qualify for Medicaid even if only one of them needed to be cared for in a nursing home. The healthy spouse was reduced to poverty so that the other spouse could qualify for Medicaid long-term care services. Fortunately, spouses are now protected against such impoverishment.
Current Medicaid rules allow the community spouse—that is, the spouse who is not applying for Medicaid—to keep a certain amount of the couple’s total countable assets, subject to certain minimum and maximum limits established by federal and state requirements. The amount the community spouse is allowed to retain is known as the community spouse resource allowance, or CSRA. CSRA Limits The minimum CSRA limit is set by the federal government, and all states are required to abide by it.
The minimum limit may change each year to reflect changes in the cost of living. (As a point of reference, the minimum limit was $27,480 in 2022.) Generally speaking, community spouses are allowed to keep countable assets up to the amount of the full minimum limit, and (in most states) up to 50 percent of assets if they exceed the minimum limit, up to the amount of the maximum limit.
The maximum CSRA limit is also set by the federal government, but states are allowed to set a lower maximum limit if they choose. States are not permitted to set a higher maximum limit than the figure established by the federal government. Like the minimum limit, the maximum limit may change each year to reflect changes in the cost of living. (As a point of reference, the federally set maximum limit was $137,400 in 2022.) Some examples will help clarify how these minimum and maximum limits are applied to protect the community spouse from impoverishment while spending down assets to qualify an institutionalized spouse’s nursing home expenses for payment by Medicaid.