Long Term Care FAQ
What should both employers and employees know about the new federal government's Long Term Care program?
The Community Living Assistance Services and Suports Act, or CLASS Act, is part of the Patient Protection and Affordable Care Act signed into law by President Obama in March 2010. Click here to learn more.
What types of expenses are covered by Long Term Care Insurance?
A comprehensive Long Term Care Insurance plan provides for expenses in nursing homes, alternate care facilities, at home, assisted living facilities, adult day care centers, adult foster care homes and hospice care facilities.
At what point in time am I eligible to begin receiving benefits from my Long Term Care plan?
A common definition in Long Term Care policies states that, once coverage is in effect, you are eligible for benefits if you are unable to perform at least two activities of daily living without assistance or substantial supervision or you suffer severe cognitive impairment. It is also common for policies to contain a waiting period before benefits become payable. If you participate in The Municipal Pool Long Term Care Plan, there is a waiting period of 60 days for nursing home care and 15 days for community-based care and assisted living facilities.
What happens to my group Long Term Care Insurance when I retire?
For employees who have enrolled in The Municipal Pool Long Term Care Plan, when you retire your employer needs to notify CNA of your termination date. Because the Long Term Care Insurance is completely portable, you will be able to keep the same plan at the same rates. CNA will just change the method of payment from payroll deduction to direct billing sent to your home address. If you do not begin receiving bills at your home, you should call CNA at 1-888-825-0686.
What is the Minnesota Long Term Care Partnership (MLTCP) Program?
The Minnesota Long Term Care Partnership is a public/private arrangement between private Long Term Care insurers like CNA and Minnesota's Medicaid/Medical Assistance program. It enables people who purchase certain Long Term Care coverage to have more of their assets protected if they later need to have the state pay for their long term care. For example, if you receive $100,000 in benefits under your private Long Term Care coverage, you may be allowed to protect an additional $100,000 in personal assets at the time you apply for Medicaid/Medical Assistance. If you are under age 76, you must elect a plan that includes lifetime inflation protection, called Automatic Benefit Increase (ABI), to qualify for the Partnership. CNA was the first carrier to offer a group Long Term Care plan approved for this partnership.
I did not receive the CNA letter sent to Long Term Care participants. Why?
Everyone who has elected The Municipal Pool Long Term Care Insurance does not automatically qualify for the Partnership Program. Only those employees who elected specific inflation protection, the lifetime compound Automatic Benefit Increase (ABI) option, received the letter. An individual under age 76 must have a plan that includes ABI to be eligible for the protection of assets provided by the Partnership Program. If you are not sure which plan option you have elected, call CNA at 1-888-825-0686.
Will Medicare pay for my Long Term Care?
The government Medicare website gives the following answer, "While there are a variety of ways to pay for long-term care, it is important to think ahead about how you will fund the care you get. Generally, Medicare doesn't pay for long-term care. Medicare pays only for medically necessary skilled nursing facility or home health care. However, you must meet certain conditions for Medicare to pay for these types of care. Most long-term care is to assist people with support services such as activities of daily living like dressing, bathing, and using the bathroom. Medicare doesn't pay for this type of care called "custodial care". Custodial care (non-skilled care) is care that helps you with activities of daily living. It may also include care that most people do for themselves, for example, diabetes monitoring. Some Medicare Advantage Plans (formerly Medicare + Choice) may offer limited skilled nursing facility and home care (skilled care) coverage if the care is medically necessary. You may have to pay some of the costs." Click here to visit Medicare's website.
Why should I consider Long Term Care Insurance?
Seventy percent of people over age 65 will require some long-term care services at some point in their lives. And, contrary to what many people believe, Medicare and private health insurance programs do not pay for the majority of long-term care services that most people need. The following website, www.longtermcare.gov, provides a wide range of information to help you plan for future long-term care needs.
Where can I find information to help me provide services to a family member who needs Long Term Care?
Are you a caregiver? Are you looking for caregiver resources? Click here to visit the National Family Caregivers Association (NFCA).
About NFCA: The National Family Caregivers Association educates, supports, empowers, and speaks up for the more than 50 million Americans who care for loved ones with chronic illness or disability or the frailties of old age.
What is home healthcare?
Home healthcare is provided by a home health agency that sends home healthcare providers to your home to provide nursing care, personal care, nutritional services, meal preparation, housekeeping and physical therapy. Home healthcare can also be used to provide respite for a family caregiver.
What distinguishes adult daycare from adult foster care?
Adult daycare provides a protective setting for those who cannot stay alone. Adult daycare centers are not residential facilities but offer services for up to 12 hours a day.
Adult foster care is appropriate for those who cannot live alone and require more services than just room and board. Adult foster care allows your needs to be met in a private home.
Won't my health insurance and disability insurance cover Long Term Care Services?
Private healthcare plans have very limited coverage for long term care services. And disability income coverage is really meant to replace lost wages when you can no longer work. Disability income benefits are designed to cover your normal living expenses, like food and housing; it wouldn't be enough to pay someone to care for you.
Can I purchase long term care insurance with money from my HSA?
The answer is yes and you can obtain more answers on qualified expenses from an HSA by clicking here. There are restrictions on the amount of premium you can deduct based on age. Those limits can be found as the IRS website. Click here for more information on those limits.
