LTC letters being sent by States

Jul 28, 2007

  1. tommyk
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    tommyk Guru

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    I have heard that there are about 5 states that are sending letters to the residents of that State telling them that they should be getting LTC insurance because the State will not have the money to take care of them. Now I have heard this from three different people...so, does anyone know about this and is there a link or copy of the letter being sent out?
    Thanks
     
    tommyk, Jul 28, 2007
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  2. Guest
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    Here is one I got yesterday
    http://www.answer123.com/ltcletter.pdf

    Is there a way to upload this to the board? I tried and got message that upload failed. Thus, I put it on my server but I won't leave it there forever.

    Al
     
    Guest, Jul 28, 2007
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  3. Crabcake Johnny
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    Crabcake Johnny Guru

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    What would the state's suggestion be for most of the people who can't get through underwriting?
     
  4. Newby
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    The federal government is requiring all states to adopt a partnership program similar to what Indiana and several other states already have. This is a plan to help save Medicaid from going broke.

    Basically it will encourage more people to buy long term care insurance and the more people that have it the fewer that will end up on Medicaid from bad planning (middle-class not the poor ones.) This will help preserve Medicaid for the truly needy.

    Each state is required to spend money promoting the program. "Long Term Care Insurance is good for America" is a slogan for the program.

    The advantage to the consumer is; is you buy one of these partnership plans, if you outlive the plan benefits the state will carry you and you will never have to spend down your assets to qualify for Medicaid.

    One of the requirements of the plans is they MUST have inflation protection. Indiana's requires 5% annual compounded. That adds a lot to the premuim. I think the federal requirements will only require 3% simple which will be much, much less.

    Good program.
     
    Newby, Jul 28, 2007
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  5. James
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    My understanding of partnership program is that the amount of LTC benefit that is brought is the elimination of the spenddown. Yet anything above that amount will need to be spentdown. If you purchase say $200 grand of benefit then $200 grand will be the amount that will not count towards the spenddown.
     
    James, Jul 29, 2007
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  6. senior-advisor-indiana
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    In that case, why not buy a $200,000 life policy and put it in an ILIT. Wouldn't that protect the $200k form spendown and be cheaper than paying LTC premiums. I know it would not help the system but it would help the client.

    Is it our duty to save the client or the system? Should we be looking for loopholes so people can dodge losing their assets and using gov't funds?
     
  7. senior-advisor-indiana
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    I'll start a new thread for the second part of my last post.
     
  8. Newby
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    An irrevocable life insurance trust would mean that you are giving your money to the trust and can't get to it ever again. Plus it would have to be done at least 5-years before applying for Medicaid. And third, most people with money don't WANT to get on Medicaid.
     
    Newby, Jul 29, 2007
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  9. senior-advisor-indiana
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    I understand now. I don't know why I was thinking that people with money would be comfortable on medicaid. I wasn't sure how much worse medicaid care is compared to someone who pays. What do people use ILIT's for?
     
  10. James
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    Disregarding the ILIT statement I do believe a LTC Policy dollar for dollar has a bigger bang for the buck then a Life Policy or Annuity with a LTC Rider.
     
    James, Jul 30, 2007
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