CONSUMER ALERTS

April 2009

Guidance on buying long-term care insurance

As you or a loved one grow older, the chances increase that you’ll need some kind of extended health care. In fact, 55 percent of people aged 85 or older need long-term care, although a younger person who has been in an accident or contracted a debilitating illness might also require such aid.
      Long-term care goes beyond standard physician and nursing attention to include all the forms of assistance you will likely need if you ever develop a chronic illness or disability that renders you unable to care for yourself over an extended period of time. The difficult truth is, however, that covering the cost of the services of a nursing home, assisted living facility, or in-home health aides can be very expensive.
      Individuals and their families pay about a quarter of all nursing home costs out-of-pocket. As a rule, long-term care is not covered by the health insurance you may have on your own or through your employer, nor do Medicaid or Medicare generally cover long-term care costs.
      If, like many Americans, you’re concerned about how you or a loved one can manage to cover these expenses, long-term care insurance may be the answer. Be sure to research all your options before you buy. You’ll find a lot of valuable information in the Guide to Long-Term Care Insurance offered by the U.S. Department of Agriculture and America’s Health Insurance Plans. The guide advises, for example, that when you’re reviewing long-term care policies, you should determine not just how much you can afford in premiums, but also how long you could pay for your own care. Consider that while 45 percent of nursing home stays are three months or less, more than one-third last a year or longer. This longer stay could be a devastating financial blow that you may want to insure against.
      The free brochure answers many other questions you might have, including how much a policy can cost, the types available, and what they cover. You’ll even find a checklist of questions to help you compare policies. To receive your copy of the Guide to Long-Term Care Insurance:
       

• Send your name and address to the Federal Citizen Information Center, Dept. 579T, Pueblo, CO 81009, or

• Call toll-free 1 (888) 8 PUEBLO (1 (888) 878-3256) and ask for Item 579T.

       
            As always, visit www.pueblo.gsa.gov to read or print this and hundreds of other FCIC publications for free.