Health Reform and Long Term Care Health Insurance Changes

Have You Heard of The CLASS Act?A nursing home can cost well over $100 a day so
The CLASS act is not an old movie or a bookthis new bill is just part of the picture. It would
about rules for good behavior. Instead it is ahelp, but not totally keep us from needing to rely
provision of health reform, that is voluntary, andupon other assets, long term care insurance or
may help some families make nursing care moregovernment aid.
affordable.Is There Already Government Help To Pay For
CLASS stands for Community Living AssistanceNursing Care?
Services and Supports. It is a pat of the newNote that Medicare, the federal health insurance
health reform bill. It was passed by the USprogram for seniors and disabled people, does not
Senate and House of Representatives. Workerspay for long term nursing care today. It only pays
will be enrolled in this program, but may choose tofor short term stays. Medicaid, the federal heath
decline it at any time according to the wording ininsurance for the poor, only starts to pay after a
the bill.person has almost exhausted their other assets.
What Does the CLASS Act Do?Many people confuse Medicare and Medicaid. They
- It is a voluntary program. Employers will bedo have similar names, but are very different
required to deduct premiums, but employees canprograms. Some people are on both Medicare and
opt out of this program if they choose to.Medicaid, but they are on them for different
- Premiums have not been determined yet. It isreasons. Medicare is for seniors and disabled
believed they will be lower tor people with lowpeople. Medicaid is for people with low assets and
incomes, but.that average workers can expect toincomes.
pay about $120 a monthWhat About Private Long Term Care Insurance
- If people under the program become disabled, itPolicies?
will pay about $50 a day for nursing care. NoteAgain, even if a worker opts into the health
that these people do not have to be over 65reform plan, they cannot rely on $50 a day to
years old.fully pay for nursing home care. In fact, it may
- The nursing care could be from a nursing home,pay 30 - 50 percent of it. The other $50 - $100 a
but it could also be in-home care, such as a homeday would have to come from another source.
health aide, adult day care or assisted living. So itThis could be a private or group nursing home
pays for nursing homes or alternatives.insurance policy, assets, or Medicaid.
- The plan premiums are set to be adjusted at aThis part of the plan has not been implemented
rate that will keep it solvent without any federalyet. I also understand that there will be a waiting
funds.period, so nobody can sign up for the plan a few
- The CLASS act is NOT A TAX. It is voluntary.days before they need it. The benefits of this
Will This Health Reform Measure Help?part of health reform are not going to affect us
There is no doubt that nursing care is expensive,in the next few years, but may help younger
and that most of us faced a high chance ofpeople with their retirement planning.
needing long term care at some point in our lives.