LTC Benefits and Medicaid

[bardessa]

My 87 year old mother has been paying LTC premiums for over 20 years;even when Genworth kept raising her rates, she continued paying because she didn't want to be a burden on her three daughters. Now she is in a nursing home and unable to use the LTC benefits. The policy will only pay only about 2/3 of the cost of the nursing home. We hoped that by assigning the benefits directly to the nursing home, it would not be considered income and she would be eligible for Medicaid which would pick up the remaining 1/3 of the cost. The business manager at the nursing home says it doesn't work that way. No matter how the nursing home gets the LTC payout, it is considered income to my mother and boots her out of being eligible for Medicaid. We are in the position of dropping the LTC care policy so that she can qualify for Medicaid. What a waste of resources not to mention all those premiums she paid to Genworth. I guess that's how they make a profit. Any suggestions?

 

[Mr_Ed]

My 87 year old mother has been paying LTC premiums for over 20 years;even when Genworth kept raising her rates, she continued paying because she didn't want to be a burden on her three daughters. Now she is in a nursing home and unable to use the LTC benefits. The policy will only pay only about 2/3 of the cost of the nursing home. We hoped that by assigning the benefits directly to the nursing home, it would not be considered income and she would be eligible for Medicaid which would pick up the remaining 1/3 of the cost. The business manager at the nursing home says it doesn't work that way. No matter how the nursing home gets the LTC payout, it is considered income to my mother and boots her out of being eligible for Medicaid. We are in the position of dropping the LTC care policy so that she can qualify for Medicaid. What a waste of resources not to mention all those premiums she paid to Genworth. I guess that's how they make a profit. Any suggestions?

Thank you for your question. We would be glad to help you but we need a little more info. Your answers don't have to be exact, but if you can come as close as possible to answering these questions, it would help us to help you:

1) What state does your mother reside in now?
2) What is your mother's monthly income from social security, pensions, and any other sources?
3) Does your mother own a home, if so, how much equity is in it?
4) Approximately how much does your mother have in savings, checking, C.D.'s, IRA's, etc...


Thanks.

sao

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My 87 year old mother has been paying LTC premiums for over 20 years;even when Genworth kept raising her rates, she continued paying because she didn't want to be a burden on her three daughters. Now she is in a nursing home and unable to use the LTC benefits. The policy will only pay only about 2/3 of the cost of the nursing home. We hoped that by assigning the benefits directly to the nursing home, it would not be considered income and she would be eligible for Medicaid which would pick up the remaining 1/3 of the cost. The business manager at the nursing home says it doesn't work that way. No matter how the nursing home gets the LTC payout, it is considered income to my mother and boots her out of being eligible for Medicaid. We are in the position of dropping the LTC care policy so that she can qualify for Medicaid. What a waste of resources not to mention all those premiums she paid to Genworth. I guess that's how they make a profit. Any suggestions?

Bardessa,

Based upon the information you PM'ed to me, your mother should never have purchased a long term care insurance policy.

LTC insurance is for someone who cannot easily qualify for Medicaid. Based upon what you sent me your mother should have been able to qualify for Medicaid 22 years ago.

If someone's only income is social security and only asset is their home, they should NOT own LTC insurance--that person is the kind of person for whom Medicaid was created.

I'm sorry that your mother was given bad advice. She should never have purchased a policy.

sao

 

[Arthur Rudnick]

Scott,
I'm not sure what was in your PM, but in any scenario why would the LTC benefits be counted as income?
bardessa also claims that his mother is in a nursing home and the policy will not pay benefits.
Why?

 

[CALTCAgent]

My 87 year old mother has been paying LTC premiums for over 20 years;even when Genworth kept raising her rates, she continued paying because she didn't want to be a burden on her three daughters.

How much were her premiums ?

Curious since she was on medicaid and wondering how she could afford them ?

Now she is in a nursing home and unable to use the LTC benefits.

Was she ever at home and did the plan have home health care benefits ?

 

[wc2624]

Scott,
I'm not sure what was in your PM, but in any scenario why would the LTC benefits be counted as income?
bardessa also claims that his mother is in a nursing home and the policy will not pay benefits.
Why?

I read the OP as the policy did not pick up the full cost of the facility and mom couldn't afford to pick up the difference out of pocket which, I assume, renders the LTC policy virtually useless if she's going to end up using Medicaid anyway.

The income question is one I had as well but I think some terms may be being misinterpreted.

 

[Mr_Ed]

Scott,
I'm not sure what was in your PM, but in any scenario why would the LTC benefits be counted as income?
bardessa also claims that his mother is in a nursing home and the policy will not pay benefits.
Why?

only income is social security.
only asset is home with about $50K in equity.

 

[Arthur Rudnick]

originally posted by Mr_Ed

only income is social security.
only asset is home with about $50K in equity.

Only solution is for the agent to lose his/her license.

Just saying.................