News: Long Term Care Providers Make an Exit

By Lance Cashion
Thinking about Long Term Health Care Insurance (LTC)?

You’ll want to do your homework on this one! I’ve been keeping an eye on the events swirling around long term care. I can tell you one thing. Preparing for long term care is going to be a challenge for Baby Boomers and their families. There is no getting around that fact.

Did you know that Long term care in an assisted living center or nursing home can cost $3000-$5000+ per month?  The average stay in a nursing home is 14 months (according to the August 2010 report by the Journal of the American Geriatrics Society), but an assisted living center stay could last several years.  My wife’s grandmother was in an assisted living center for a few years and the nursing home (acute care at the same facility) for several months.  Thankfully, my in-laws had the means to pay a large portion of the costs.  Practically everyone has a similar story.

Last year, insurance giant Met Life announced it would be leaving the Long Term Care market. Recently, Guardian Life Insurance Company of America announced that it too would be exiting the market. The Federal Government has entered the market with the Community Living Assistance Services and Support or CLASS (a government entitlement program designed to provide long term health care benefits). CLASS has it’s own funding pitfalls like it’s counterparts, Medicaid, Medicare and Social Security. You can read more about CLASS legislation here.  With the advent of the Federal Government moving into the long term care market (via CLASS), we can expect more private providers like Met Life and Guardian Life to exit the market as well.

Good news!
There are alternatives to traditional Long Term Care insurance that provide the same protection with more flexibility. If you are one of the estimated 79 million Baby Boomers, its time to look at these alternatives. Healthy retirement planning requires preparing for long term health care needs. You can have all your money properly invested in all the right places, but if you don’t insure yourself, those assets could be liquidated to pay for your long term care.

Insurance of any kind is based on one simple rule or law. You are going to pay a little money (premiums) to protect (insure) a lot of money (or assets). Alternatives to Long Term Care represent a hybrid of insurance solutions that allow you to be flexible if you don’t end up needing long term care.

Take charge of your long term health care and protect your family and assets by contacting an advisor at HybridCare today.  There is no cost to you to become informed of your options.

Do you need to have long term care insurance? (comment below)


Credits: Article reference credited to: Brian Blase (The Heritage Foundation) & The Journal of the American Geriatric Society (Aug 2010 Report)

This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. Please consult with a professional specializing in these areas regarding the applicability of this information to your situation.