Government and Long-Term Care

In 1996, US Congress passed HIPAA for federal tax advantages to Long-Term Care Insurance policyholders. Read more

About the Federal Long-Term Care Insurance Program

In 2000, the US Congress passed the Long-Term Care Security Act, which requires the federal government to offer Long-Term Care Insurance to federal employees and their family members. The Office of Personnel Management connected with Long-Term Care Partners LLC to create the Federal Long Term Care Insurance Program, which became available in February 2002 for enrollment. John Hancock Insurance Company provides the insurance. (1.)

There are about 20 million people who are eligible to apply for the federal Long-Term Care Insurance pogrom, these people include Federal and Postal employees and annuitants, active and retired members of the uniformed services, active members of the Selected Reserve, and a few others.

Today the Federal Long Term Care Insurance Program is the largest employer-sponsored Long Term Care Insurance program in the US with over 224,000 enrollees. (1.)

To learn more about Federal Long-Term Care Insurance Program visit their official website at www.ltcfed.com or www.opm.gov.

Governments Own Your Own Future Long Term Care Insurance Campaign

In January 2005, the Long-Term Care Insurance Awareness Program called "Own Your Future" campaign began. Own Your Future was designed by the federal government and individual states to raise awareness to consumers about planning for Long-Term Care. Since many people do not think about their Long-Term Care needs and fail to plan, this campaign hopes to make these individuals more aware of the potential need for Long-Term Care. In turn these individuals are more likely to take the steps to prepare for their future by financing privately such as purchasing LTC Insurance and reduce the burden of publicity financing such as Medicaid.

This campaign is the first of its kind to raise awareness for Long-Term Care Insurance, and it is expected that most states will be involved in promoting Long-Term Care awareness. As of April 2008 there were 18 states that participated in the Own Your Future campaign. Each state is supported by that participating state's Governor and sends a direct mail piece to households between the ages of 45 -70. The mail piece is a letter pointing out the importance of Long-Term Care planning and is also signed by the state Governor. If one responded to the letter they will receive a Long Term Care Planning kit for free.

Source: www.aoa.gov

About the Federal Government Long-Term Care Insurance Program

In February of 2006 President Bush signed the Deficit Reduction Omnibus Act of 2005 (DRA). This new law allows for nationwide expansion of Long-Term Care Partnership programs and tightens the eligibility rules for Medicaid. Ultimately this is great news for the Long-Term Care Insurance industry.

Long-Term Care Insurance Partnership policies allow consumers to protect some of their assets that they would most likely have to spend down to qualify for Medicaid when needing Long-Term Care. Until the DRA came into effect there were only 4 states that participated in the Partnership Programs which include Indiana, California, Connecticut, and New York. Now there are over 20 states that are authorizing legislation(1.).

The changes made to Medicaid eligibility will make it more difficult for individuals to qualify for coverage. These changes are the look-back period is now changed from 3 to 5 years and one must meet the required spend down limits prior to the penalty period. Individuals will be ineligible for Medicaid coverage if they have home equity more than $500,000-$75,000 (depending on the state).

1. http://www.aarp.org/research/longtermcare/insurance/fs124_ltc_06.html
Source: http://www.michigan.gov/documents/meetingnotes_04242006_Documents_171879_7.pdf

Further Information regarding Long-Term Care Insurance Partnership Programs

In the 1980's the Long Term Care Insurance Partnership Program was developed for those who might want to rely on Medicaid for the Long-Term Care needs. It is designed to help encourage these people to purchase LTC Insurance. Visit LTC Partnership Only to see the states that currently offer Partnership Programs.

Source:
1 . www.ltcfeds.com