May 22, 2024

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Understanding Long Term Care

We hear it all the time; people live longer, the system is not equipped to handle the increasing number of older Americans, and health care costs so much. One thing that can be done to safeguard your future and finances is to hire houston home health agency. Their home health care service provides coverage for health care issues that go beyond hospital care. There are different types of plans with different eligibility requirements and costs. In this article, we’ll take a look at the details.

Eligibility

There should be a need for help completing one or more ADLs (Activities of Daily Living, which include but are not limited to bathing, dressing, transferring, and toileting) or have some cognitive impairment. Some policies also require an elimination period of 20-120 days. The consumer pays for services before the system will go into effect. In some cases, there may be no elimination days if the covered services are provided in-home and following a plan of care.

Benefits

Long Term Care Insurance generally covers services such as Home Care, assisted living, adult day services, Respite, Hospice, nursing home, and dementia facilities. Many people like this because they know they will not have to depend on children or family. Another benefit is that it can keep seniors from exhausting their savings. Also, premiums paid may qualify as an income tax deduction, and benefits are generally not counted as income.

Types of Policies

Tax-Qualified (TQ)

most common type. This type of LTC requires that a person needs care for at least 90 days and be unable to perform two or more ADLs without substantial assistance. They need to demand attention for at least 90 days and need significant help due to severe cognitive impairment. Benefits paid are not taxable

Non-Tax Qualified (TQ)

Non-Tax Qualification requires a “trigger” condition or some medical necessity. The doctor of the patient or one from the insurance company must state that the patient needs care before the policy will take effect. The inability to do just one ADL is required for this type of system. Walking is considered an ADL for NQT policies. The taxability of these benefits has not yet been determined by the Treasury Department and is open to interpretation.

Fewer Non-Tax Qualified policies are available because consumers want tax deductions. When choosing a type of system, it is advised that you seek competent counsel and thoroughly review each type’s pros and cons.

Once a policy is purchased, the language cannot be changed. The system cannot be canceled due to health reasons, only non-payment. Most benefits are paid on a reimbursement basis. Some policies offer different per-day rates. In any event, consumers are encouraged to get all the facts and figures of any system before choosing to hire services.