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Money Matters for Seniors
Nursing Home Costs Continue to Rise and Congress
Takes Notice
As care costs sky-rocket, long-term care
insurance is more attractive
By Robert Valentine,
Certified Senior Advisor
September 5, 2006 - Americas elderly with special
needs and their loved ones have always paid a high price for long-term
medical care. The emotional and financial toll of an extended stay in a
care facility or nursing home can be extremely costly.
A 2005 study by
MetLifes Mature Market Institute showed that the average cost for a
private nursing home room increased 5.7% from 2004 to 2005. That means
in most states, it exceeds $200 a day. Costs of in-home care werent
spared either, increasing by 5.5%.
Even with the increase in health care costs for the
elderly, many consumers dont realize the benefits of long-term care
insurance. Some long-term policies cover not only skilled nursing
facilities but also in-home care and companion care.
The House and Senate have begun to address
long-term care insurance in several bills aimed at making the insurance
more affordable and more realistic. These efforts signal a growing
concern by citizens, lawmakers and interest groups about the
affordability and availability of long-term care insurance in America.
The proposed legislation also reflects growing
concern about rising healthcare costs and their impact on Medicaid and
Medicare. While its unclear whether the bills will make much progress,
theyre full of ideas from both Republicans and Democrats on how to
increase the number of Americans who have long-term care insurance.
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Insurance
Information for Senior Citizens Provided on Website
Insurance
commissioners provide information by life stages
June 21, 2006 A Website is available to help
senior citizens better understand the complicated subject of insurance.
It is sponsored by the National Association of Insurance Commissioners (NAIC)
and, they say, is designed to help consumers deal with "a maze of
options and cost considerations." It is organized by "life state needs"
and the "Empty Nesters" section is for senior citizens.
Read more...
Read more on
Money, Insurance &
Investments |
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Many of the bills contain similar provisions,
including a tax deduction for the amount spent on long-term care
premiums. One provision even calls for a $1,000 tax credit that will
gradually increase to $3,000 by 2009 for anyone who purchases long-term
care insurance.
Several of the bills also ease the Medicaid rules
regarding long-term care benefits. In the new version of regulations,
any benefits received from long-term care insurance wont count against
Medicaid eligibility. The hope is that more citizens will be encouraged
to get long-term care insurance, which will lessen the burden on
Medicaid and Medicare.
With healthcare costs rising, long-term care
insurance can potentially offer relief from many years of steep bills
and debt. Appropriate coverage depends on your financial situation and
your retirement plan, so consult with your financial professional for
help in selecting the right policy for you.
Robert Valentine is a well-known expert in
the matters concerning investors. His articles on financial planning
matters that concern investors have been published by several
publications throughout the United States. You may visit his website,
www.themoneyalert.com to view some of his most popular articles.
Note: This article was submitted by Robert
Valentine of Financial and Retirement Management. Robert (CA Insurance
Lic #0C23496) is a Registered Representative of and offers securities
through Securities America, Inc., a Registered Broker/Dealer, Member
NASD/SIPC. Advisory services offered through Financial and Retirement
Management, a Registered Investment Advisory firm. Robert is a Certified
Senior Advisor in Huntington Beach, CA. Several of his articles on
financial planning matters that concern investors have been published.
Robert can be reached at (877) 732-2637.
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