Wednesday, August 16, 2006
New LTC insurance products available
[Andrea Petersen, "Covering Long-Term Care," The Wall Street Journal, 13 August 2006.]
The Wall Street Journal reports that while consumers have thus far shown only limited interest in long-term care coverage, new products may increase demand:
Firms are rolling out policies that allow consumers to get their benefits -- or a portion of their benefits -- in cash, making it possible for people to pay for informal types of care, including assistance from friends and family members.
New "shared care" plans let couples pool their combined benefits: If one person exhausts benefits, he or she can pull from the spouse's policy.
Recent government actions are also spurring the development of new long-term-care products. A new "partnership" program that is in the process of being rolled out nationally will allow those who buy certain long-term-care policies to protect some of their assets and still become eligible for care paid for by Medicaid. Also, recent legislation passed by Congress is likely to open the door to a slew of new products that meld long-term-care insurance with an annuity or life-insurance policy. These could give consumers new tax breaks.
[Stephen A. Moses, "Project Proposal: Controlling Medicaid Long-Term Care Costs," The Flint Hills Center, January 2004.]
The Wall Street Journal reports that while consumers have thus far shown only limited interest in long-term care coverage, new products may increase demand:
Firms are rolling out policies that allow consumers to get their benefits -- or a portion of their benefits -- in cash, making it possible for people to pay for informal types of care, including assistance from friends and family members.
New "shared care" plans let couples pool their combined benefits: If one person exhausts benefits, he or she can pull from the spouse's policy.
Recent government actions are also spurring the development of new long-term-care products. A new "partnership" program that is in the process of being rolled out nationally will allow those who buy certain long-term-care policies to protect some of their assets and still become eligible for care paid for by Medicaid. Also, recent legislation passed by Congress is likely to open the door to a slew of new products that meld long-term-care insurance with an annuity or life-insurance policy. These could give consumers new tax breaks.
[Stephen A. Moses, "Project Proposal: Controlling Medicaid Long-Term Care Costs," The Flint Hills Center, January 2004.]
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