[…] My guess is that over the next decade or so, we’re going to see discussions about long term care that will look similar to what we’ve seen in the last couple years regarding health insurance. The rate hikes we saw last year in the long term care insurance industry were a sign that long term care is becoming more expensive than ever, and as the population ages, there will be a steadily increasing demand for long term care services. Other nations are starting to address the subject in their legislative bodies, and although the US tends to prefer private market solutions, it remains to be seen whether government programs like CLASS will become more widespread and robust as time goes by.
There is quite a bit of misunderstanding around financial planning for long term care. Some of that has to do with confusion over the differences between Medicare and Medicaid, and what those programs will actually cover when it come to long term care. There is also some confusion around what is meant by long term care.
Medicare is a federal program designed to cover the cost of health care for elderly Americans as well as those with disabilities. Medicaid is a joint state and federal health care program, but it provides […]
[…] But long term care insurance is a bit more complicated. It’s not as expensive as health insurance, but it’s more expensive than term life insurance. And it involves some very long range planning. For a lot of people, simply planning for retirement is a stretch. And your need for extensive long term care, if it arises, may not come about until well after you retire. So it’s understandable that many people are either on the fence about purchasing long term care insurance, or not even thinking about it at all. […]