• feed
    Subscribe
    to this Category Feed
  • Voluntary Long Term Care Program Part of Health Reform

    Voluntary Long Term Care Program Part of Health Reform

    One of the lesser known portions of the new Health Care Reform is that there is now a voluntary federal long-term care program designed to pay out a daily cash benefit that beneficiaries can use to help finance nursing home care, home health care, or other needs of the disabled.

    As Medicare only covers limited nursing home care, many people are ill prepared for expenses relating to extended care following illness or accidents.  Only about 7 million people in the U.S. have purchased Long Term Care coverage.

     The CLASS program (Community Living Assistance Services and Supports) is not limited to the elderly.  Anyone who elects the payroll deduction can enroll and draw benefits.

    The health care reform law requires the Department of Health and Human Services to set up a new, voluntary long-term care insurance program to take effect in January 2011. Participants will sign up through their employers, and the monthly premiums will be collected through payroll deductions.

    After five years of enrollment, the policyholder will be eligible for benefits, regardless of age.  The program will not pay for the entire cost of nursing home care, which in some areas can reach more than $70,000 a year. Instead, it will pay cash benefits of $50 per day or more, depending on the degree of disability.

    This is probably inadequate to fund possible future needs.  We recommend discussing additional coverage with your financial planner, or contact our office at (888) 474-6627.

    1 Comment

    1. Great article Karin!

    Leave a Reply