Understanding Long-Term Care Insurance

The information that is provided in this section will provide you with information about the options available to the individual who needs help in their every day living. It covers what is available through Medicare, Medicaid and private insurance. Because of the complexities of Long Term Care policies, a worksheet is provided to help you compare policies. If you would like to obtain a Long Term Care quote, simply complete and submit the quote request form.

Carney Cargill, Inc.
375 NE Ericksen Avenue
Bainbridge Island, WA 98110
Phone: 206-842-8987 Long-term care insurance pays benefits for care in the event of an extended illness or injury if the insured is unable to function independently. Typically, care is delivered either at home or in a nursing home facility. Today's policies are flexible, allowing for care received in a variety of facilities, do not require prior hospitalization, and cover custodial, intermediate and skilled care. In addition, Congress has passed legislation allowing for the deduction of premiums on Federal income tax returns.

Despite popular misconceptions, the need for long-term care is not restricted to the elderly. Individuals between the ages of 18 and 64 represent 40 percent of those who currently need long term care. About 60% of the U.S. population will need long term care at some point in their lives.

Long-term care involves a wide variety of services for people with a prolonged physical illness, disability, or cognitive disorder (such as Alzheimer's disease). Long-term care differs from traditional medical care as it is designed to assist a person in maintaining his or her level of function as opposed to care services that are designed to rehabilitate or correct certain medical problems. Long-term care services may include help with daily activities at home, such as bathing and dressing, respite care, home care, and care in a nursing home.

Skilled care and personal (custodial) care dominate the delivery mechanisms for long-term care services. Skilled care is generally needed for medical conditions that require care by licensed medical personnel, such as registered nurses or professional therapists. Carney Cargill, Inc.
375 NE Ericksen Avenue
Bainbridge Island, WA 98110
Phone: 206-842-8987 This care is usually provided 24 hours a day, is ordered by a physician, and involves a treatment plan. Skilled care is generally provided in a nursing home, but may also be provided in other settings such as the patients home with help from visiting therapists.

Personal or custodial care supports a person in performing the activities of daily living which include assistance with bathing, eating, dressing, toileting, continence, and transferring. It is less intensive or complicated than skilled care and can often be provided in many settings, including nursing homes, adult day care centers or the patient's home.

Long-term care can be expensive depending upon the type of care needed and the setting in which it is provided. Currently, the cost of a year's care either in the patient's home or in a nursing home in Kitsap County Washington costs between $65,000 and $70,000, or approximately $180 per day.

It is important to remember that purely custodial care (the type of care most persons in nursing homes require) is not covered by Medicare or most Medicare Supplement policies. The only nursing home care that Medicare covers is skilled nursing care or skilled rehabilitation care that is provided in a Medicare-certified skilled nursing facility after a three-day hospital stay.

Medicaid provides assistance for those people who meet federal poverty guidelines for income and assets. Many people begin paying for nursing home care out of their own pockets and spend down their financial resources until they become eligible for Medicaid. They then must turn to Medicaid to pay part or all of their subsequent nursing home expenses.

Long-term care insurance enables you to transfer the financial risk of long-term care costs to an insurance company. In exchange for current premiums, long-term care insurance enables you to preserve your accumulated wealth from the potentially devastating expense of long-term care. Such policies are well suited to those who have the most to lose if long-term care needs arise. This generally includes most middle and higher net worth families. Why not transfer the risk to an insurance company by paying comparatively low premiums, rather than risk having to pay a very large bill yourself?

Understanding Long-Term Care

Carney Cargill, Inc.
375 NE Ericksen Avenue
Bainbridge Island, WA 98110
Phone: 206-842-8987 Many people do not know about or understand all the long-term care options that are available. The following are brief descriptions of the major types of long-term care, the kinds of service you may need, the ways of paying for long-term care and how to find the best services and facilities:

Home care can be given in your own home by family members, friends, volunteers, and/or paid professionals. This type of care can range from help with shopping to nursing care. Another type of care that can be given at home is hospice care for terminally ill people.

Community services are support services that can include adult day care, meal programs, senior centers, transportation, and other services. These programs can help people who are cared for at home by their families. For example, adult day care services provide a variety of health, social, and related support services in a protective setting during the day. This can help adults with impairments (such as Alzheimer's disease) continue to live in the community. And it can give family or friend caregivers a needed "break."

Supportive housing programs offer low-cost housing to older people with low to moderate incomes. The Federal Department of Housing and Urban Development (HUD) and State or local governments often develop such housing programs. A number of these facilities offer help with meals and tasks such as housekeeping, shopping, and laundry. Residents generally live in their own apartments.

Assisted living provides 24-hour supervision, assistance, meals, and health care services in a home-like setting. Services include help with eating, bathing, dressing, toileting, taking medicine, transportation, laundry, and housekeeping. Social and recreational activities also are provided.

Carney Cargill, Inc.
375 NE Ericksen Avenue
Bainbridge Island, WA 98110
Phone: 206-842-8987 Continuing care retirement communities (CCRCs) provide a full range of services and care based on what each resident's needs are over time. Care usually is provided in one of three main stages: independent living, assisted living, and skilled nursing.

Nursing homes offer care to people who cannot be cared for at home or in the community. They provide skilled nursing care, rehabilitation services, meals, activities, help with daily living, and supervision. Many nursing homes also offer temporary or periodic care. This can be instead of hospital care, after hospital care, or to give family or friend caregivers some time off ("respite care").

Learn More: You can learn about long-term care options in your area by contacting:

The Eldercare Locator (1-800-677-1116, weekdays, 9.00 a.m. to 8.00 p.m., EST). This service can refer you to your Area Agency on Aging.
Area Agencies on Aging provide information on a wide variety of community-based services. Examples are meals, home care, adult day care, transportation, housing, home repair, and legal services.
Your State or local Long-Term Care Ombudsman (call the Eldercare Locator,1-800-677-1116, weekdays, 9.00 a.m. to 8.00 for the number). Ombudsmen visit nursing homes and other long-term care facilities to check on and resolve complaints, protect residents' rights, and give emotional support to lonely older people. A call to your area Ombudsman can give you information on: the most recent State survey (inspection) report of the facility; the number of outstanding complaints; the number and nature of complaints lodged in the last year; and the results of recent complaint investigations.
Click here to visit the "Nursing Home Compare Web Site" - a Web site created by the Health Care Financing Administration, which runs Medicare and Medicaid. This site helps you locate nursing homes in your area. It also has inspection records for nursing homes that receive Medicare or Medicaid funds.
Hospital discharge planners.
Social workers (some can be "case managers" or "care managers," who can help you coordinate long-term care services).
Doctors and other health care professionals.

Local nursing facilities.
Volunteer groups that work with older people.
Clergy or religious groups.
Family and friends.