Senate pushes ahead on long-term care program

[TomCADem]

Source: Washington Post

Republican senators continued their assault Friday on key funding sources for a health-care overhaul, targeting Democratic plans to cut payments to private insurers who serve Medicare patients and to create a new government insurance program for long-term care that would raise more than $70 billion over the next decade.

Democrats beat back both efforts. They voted 57 to 41 to preserve more than $120 billion in cuts to the Medicare Advantage program, one of the primary sources of financing for a health-care package that would spend $848 billion over the next decade to extend coverage to more than 30 million additional Americans.

The Senate also voted to keep provisions to establish the Community Living Assistance Services and Support Act, or Class Act, despite concerns among centrist Democrats that the program would quickly run out of cash.

A majority of senators -- including 11 Democrats -- actually voted against Class Act, warning that congressional budget analysts say it would become a drain on the federal budget less than 20 years after enactment. But while the amendment, by Sen. John Thune (R-S.D.), garnered 51 votes, it fell short of the 60 needed for passage under an agreement between party leaders.


Read more: http://www.washingtonpost.com/wp-dyn/content/article/2009/12/04/AR2009120404294.html?hpid=topnews

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I guess the key to getting Republicans to agree to Medicare for all is adopt Medicare Advantage for all, rather than a public option, since Medicare Advantage gives seniors the option to receive their Medicare benefits through private health insurance plans.

[djp2]

1. I can't believe how much money..

my parents paid into Extended Care policies that ended up paying NOTHING when they went into a Care Home! TOO many caveats, this really needs better regulation and clearer disclosure.

[Aragorn]

2. you lie!

It would have been fitting for someone to say this. I watched a lot of it on C-SPAN yesterday. The Repubs were calmly lying about the proposed changes, with straight faces, but I can't believe they think they are telling the truth. Course both sides do it. Look at the war, Gitmo, bailouts, etc etc etc

Why do we put up with elected officials lying? Partly because some of us lie to ourselves to justify our own wishes. But that's no excuse.

[kkrimmer]

3. Not A Silver Bullet

Some 75 million boomers are ill prepared to cover the costs of long term care especially since Medicare and health insurance does not cover the bulk of long term care and Medicaid only does once someone has spent their live savings to the poverty level.
According to the Dept of Health and Human Services, 70% of Americans 65+ will need long term care. Bye bye retirement income stream, life savings, inheritances.

This new legislation (CLASS) may provide a middle product between poverty (Medicaid) and traditional long term care insurance, which provides higher and more comprehensive benefits at a higher cost, but still much less than paying out-of-pocket.

CLASS will not provide enough money ($50/day) to cover the cost of home care, assisted living, or nursing home/Alzheimer's care. Maybe insurance companies will come up with a CLASS-Gap, like the current Medicare Supplement insurance. Like Medicare Supplement insurance premiums for CLASS policies will go up.

The Class Act will offer hope to Americans with serious illnesses or injuries who can maintain their independence with the help of long-term care. -- Senator Dodd
Does CLASS provide financial assistance to those who are already sick and need care? If insurance companies can't insure the already sick how can any govt program?

Overall CLASS will not provide the same protection that traditional long term care insurance provides, and the CLASS recipients will not qualify for state Partnership asset protection as traditional LTC insurance does. (http://tinyurl.com/ybnf529).

Many people do not know the ins and outs of long term care insurance and pick plans that may not provide adequate coverage (http://www.howtobuyltcinsurance.com).

Long term care insurance may not be the best option for some. If you can qualify then a life insurance with long term care rider is another choice, and if you can't health qualify for any insurance then a fixed deferred annuity with a long term care rider or a variable income annuity with accelerated payouts in case care is needed.

The best choice for you is the one that matches your income, assets, health, age, risk, and goals. It appears that CLASS will be targeting those who cannot afford traditional LTC insurance. They still may end up on Medicaid (welfare health care) with their life savings and estates exhausted.

[Hestia]

4. Thanks for the info! Had no idea LTC policies are so complicated.

And welcome to DU. :hi: