What is long-term care insurance?
These are individual insurance policies that may help you when you are unable to take care of yourself due to prolonged illness or disability. This policy usually pays for skilled, intermediate and custodial care in a nursing home. H ome health care, adult day care, and assisted living care are also often covered. These policies usually pay a fixed amount per day or per visit to facilities or caregivers that are licensed by the state and/or participate in Medicaid and Medicare.
What is the difference between a tax qualified and a non-tax qualified plan?
Benefits paid by a tax-qualified long-term care plan generally are not taxable as income. Benefits from a non-tax-qualified long-term care plan may be taxable as income. Check with your tax advisor about the possibility of deducting a portion of the premiums paid in addition to the individual tax consequences involved.
Does Medicare Pay for Long-Term Care?
Not really. Medicare will pay for some home health care and skilled nursing facility care following a hospital stay – as continuing care. It does not pay for nursing home care or longer-term home care.
Does Medicaid Pay for Long-Term Care?
Yes, but you must meet very low income and asset requirements to qualify for Medicaid. Contact your State for more information.
What is Medicare Supplement Insurance?
The federal Medicare program pays most medical expenses for people 65 or older, or for individuals under 65 receiving Social Security disability benefits. However, Medicare does not pay all expenses. As a result, you may want to buy a Medicare Supplement policy that helps pay for certain expenses, including deductibles not covered by Medicare.
When should I apply for a Medicare supplement policy?
When you elect coverage under Medicare Part B either due to age or disability, you have a 6-month open enrollment for a Medicare supplement policy, which guarantees you coverage with a plan and company of your choice. You may choose from a list of standardized plans – listed as A through L. If you do not purchase a plan within your 6-month open enrollment, any company you apply to can deny coverage based on your health conditions. There are some limited additional open enrollment periods available to some persons disenrolling from a Medicare HMO.
Do Medicare supplement policies cover prescription drugs?
After January 1, 2006, Medicare supplement policies may not include prescription drug coverage. Those that currently have a policy with prescription drug coverage may opt to keep that coverage or switch to the new Medicare prescription drug plans after January 1, 2006.
What are MedicareAdvantage Plans?
MedicareAdvantage plans (formerly known as Medicare+Choice plans) are private managed care plans that provide the standard Medicare benefits plus additional supplemental benefits for a monthly fee. These plans may include prescription drug coverage, even after January 1, 2006, if the benefits are similar to the new Medicare benefit. MedicareAdvantage participants may even receive a subsidy for their prescription drug benefits in most cases.
What are Medicare Select Plans?
Medicare Select plans provide supplemental benefits through a network of providers similar to a Preferred Provider Organziation (PPO). If the participant received care for a provider under contract with the insurer the cost will be lower.