KIRKLAND, Wash., May 31 /PRNewswire/ -- As millions of Americans
recover from the daunting choice among prescription drug plans (deadline
was May 15), the Government is forcing another health care decision. And
this one's a doozie, according to LTC Financial Partners LLC. "Which long
term care insurance policy should you pick?"
Your answer involves much greater risk than a poor choice among drug
plans. Drugs may cost thousands per year (the standard Medicare Part D drug
benefit provides an initial coverage limit of $2,250). But long term care
services cost tens of thousands per year. According to the MetLife Mature
Market Institute, the national average cost for care in a nursing home is
$74,000 per year (for a private room); in your own home, the cost is
$23,400 per year (for a home health aide).
"Looking at the numbers," says Cameron Truesdell, CEO of LTC Financial
Partners, "you could say a bad pick for long term care has 10 to 30 times
the impact as a bad pick among drug plans." Apparently the federal
government agrees, as it quietly extends its Long-Term Care Consumer
Awareness Campaign. The campaign uses radio, TV, and direct-mail to educate
Americans on the need to plan for their own care. "The underlying message
is, don't count on Medicaid or Medicare to pick up the tab," says
Truesdell.
There is no deadline, as there was with prescription drugs, for
choosing a long term care insurance policy. Rather, Uncle Sam is pursuing a
course of gradual persuasion. In addition to raising awareness, the
campaign offers helpful items like checklists for deciding among
alternative policies. And Congress offers tax incentives in the Deficit
Reduction Act of 2005, signed by President Bush on February 8. "There's no
date when you absolutely have to pick an LTC policy," says Truesdell, "but
the downside of delay is great. The clock is ticking."
Okay, maybe you're ready to pick a policy. But there's a problem. It's
the same problem faced by Americans trying to pick a prescription drug
plan. How do you choose among confusing alternatives? Truesdell points out:
"You can end up with a poor-performing company; you can overpay for
coverage; or you can miss out on options like group coverage, which can
reduce the premium." To help applicants pick a prescription drug plan,
Medicare provided an online decision system. No such help is available from
Washington for choosing a long term care plan.
Truesdell's organization is filling the gap with a private system
called the LTC Outreach and Education Program(TM) (LTCOEP(TM)). It includes
a process that matches individual needs against many policies from multiple
carriers, and factors in relevant state and federal legislation. LTCOEP(TM)
also includes live assistance from local experts; group presentations; and
a range of audio-visual and print materials. The program is available to
local groups and companies as well as individual families.
Information on LTCOEP(TM) is available at -
http://www.eranova.com/LTCFP/ltcoep.htm