[Digest, Winter, 2003]

Finding the right long term care insurance policy now could mean substantial savings for you and your family later. But what's the right long term care insurance plan? Everyone's needs differ. That's why it's important to understand long term care insurance and what different policies offer.

Long term care is designed to help a person perform routine daily activities, such as eating, bathing, and dressing, in a nursing home, assisted living facility, Alzheimer's facility, or at home. Traditionally, long term care was provided in the home by a family member. Today's families tend to be smaller and family members often live hundreds or thousands of miles apart, making it more important than ever to plan for your own long term care needs as well as those of your spouse, parents, and parents-in-law. Chances are relatives will not be available to help provide long term care and you will find it necessary to hire professional in home or facility care.

Plan Ahead
An important step in planning ahead is finding a long term care insurance plan that meets your specific needs. This could ultimately save you or your loved ones thousands of dollars in long term care expenses.

Recent studies show the national average cost of a year in a nursing home is $54,900, while the average cost of home health care is $36,000 a year.¹ Medicare and private health insurance do not fully cover these costs. According to the Health Care Financing Administration, Medicare pays limited benefits for long term care: only the first 20 days in a skilled nursing facility. For the next 80 days, Medicare requires a daily copayment of more than $100. What's worse, Medicare doesn't cover custodial care at all, yet it's the kind of care most people in nursing facilities need. That means individuals are left to pay the remaining costs. In fact, approximately 30% of elderly long term care expenses are paid out-of-pocket.²

Regardless of whether the coverage is for you, your spouse, parents, or parents-in-law, planning ahead makes a substantial difference in cost and availability. The longer you wait to purchase long term care insurance, the higher your premium will be. Also, your likelihood of developing a health problem increases, hurting your chances of being approved for long term care protection.

Choose Carefully
There are many long term care insurance plans on the market today, and there are distinct differences among them. When analyzing plans and comparing features, you should consider these questions: How do the benefits of each plan stack up against one another? Are the rates comparable? Can you get coverage for both you and your spouse? Do you qualify for discounts?

Keep these key long term care features in mind as you shop and compare:

• Home Health Care. Home health care is care you receive at home or in an adult day care center. In-home hospice care and respite services are also included.
• Benefit Period. The benefit period you select determines the maximum amount available under your plan. Most policies pay benefits until the money is depleted.
• Rate Discounts. Some plans offer discounts for couples, good health, etc., that can save money without sacrificing benefits.
• Inflation Protection. This feature automatically increases the plan's benefit annually to account for inflation. Many plans offer simple and compound inflation protection.
• Waiting Period. This is the length of time you choose to wait - once you qualify - before your long term care benefits begin.
• Facility Care. Facility care refers to care in assisted living facilities, nursing homes, and inpatient hospice care.

The American Academy of Ophthalmology offers comprehensive long term care plans for active members and their spouses, parents, and parents-in-law ages 40-84. Academy plans pay 100% of the maximum daily home health care benefit and 100% of the maximum daily facility care benefit. There is a choice of benefit and waiting periods as well as optional simple and compound inflation protection. In addition, members may qualify for rate discounts of 10% to 25%. To learn more about these plans, call (800) 906-7607 and request ## 014905-1-1-1 for a confidential review of your long term care needs. A licensed, noncommissioned Long Term Care Insurance Representative will customize a plan to fit your lifestyle, budget, and individual needs.

Notes

1. The source referencing the national average cost of a year in a nursing home and the average cost of home health care is GE Long Term Care Insurance Nursing Home Survey, 3/4/02.
2. Loedel, Bonnie L. "Long-term Care Planning, Options and Costs." 7 July 2001. Viewed 23 Jan. 2002. www.capecodchronicle.com/practitioner_070501.htm.