Federal Long-Term Care Insurance Plan Discussion

2019 federal Long term care insurance tax deduction limits

Jesse Slome, leading long term care insurance expert, director AALTCI

As part of ongoing agent educational efforts, the director of the American Association for Long-Term Care Insurance held the latest in a series of LTC Plan Talk discussions.  The topic was comparing the Federal Long-Term Care Insurance plan.

“The Federal Long-Term Care Insurance program remains the largest group-sponsored long-term care plan in the nation,” explains Jesse Slome, director of the long-term care insurance association.   ”It has some very attractive features that those who are eligible should consider and take advantage of.”

“There are also some things consumers considering the plan should take into consideration,” Slome pointed out.  “We always urge comparisons because long-term care insurance is a policy you only buy once in your lifetime, so you really want to make the best choice of coverage anticipating care that you might not need for 10 or 20 years.”

The leading long-term care insurance expert pointed out that the ability to receive care in their own home is a primary objective shared by consumers who think about the future risk of needing care.  “We know people want to remain in their own home and that’s possible but it can be costly,” Slome points out.

One of the agents pointed out a disadvantage of the Federal Long-Term Care Insurance plan is that benefits are based on daily limits versus other plans that offer a monthly allotment.  “That’s correct,” Slome shared.  “Say the Federal plan claim limit is $150 and your daily home care costs $200 on Monday and $40 on Tuesday,” he explains.  “The Federal plan would reimburse $190 and the policyholder would pay the rest out-of-pocket.  But with a monthly reimbursement that paid $4,500, the consumer can flexibly manage their home care services, a real advantage.”

Another disadvantage shared during the call with the Federal plan’s 90-day elimination period (EP).  “That’s a common deductible dating back to when long-term care first started in the 1980s,” Slome add.  “The consumer has to pay all the costs during the elimination period.  But, today there are plans that have a 90-day EP for skilled nursing home care with a zero day EP for home care services.  Since most long-term care insurance claims start and end in the home, this is an important consideration for consumers to understand.”

The American Association for Long-Term Care Insurance advocates for the importance of long-term care planning and helps consumers connect with knowledgeable professionals who are independent advisors.   Consumers looking for local long-term care insurance agents or cost comparisons should visit the Association’s website at www.aaltci.org or can call the organization’s national headquarters at 818-597-3227.

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