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Old 08-21-2014, 07:17 PM
 
Location: Floribama
15,031 posts, read 31,400,710 times
Reputation: 13841

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I live in Alabama, and supposedly this is a "partnership state" that requires special LTC plans. If I understand it correctly, if your LTC plan gets depleted, the state will allow you to keep your assets while still allowing you to qualify for Medicaid (nursing home). These plans are also supposed to keep up with rising medical costs and inflation. Anyone here have experience with this?

I'm also trying to decide if I want to get LTC insurance at all. I'm a 35 year old male, and I have no children. I have two nephews and a niece, but I don't want to depend on them to take care of me when I'm old. My home and everything I own should be paid off within 5 years, so I should be debt free in my golden years. The insurance rep I spoke with yesterday actually tried to steer me away from LTC insurance because of future rate increases, he said he feels it's going to get really bad in coming years as baby boomers age.

He said he recommends investing in a longevity annuity. I looked at them and guaranteed income does sound attractive, but my gosh most don't even start paying out until age 85. What if I got sick and needed assisted living at 80? I'd have to wait 5 more years to get any money.

I know 35 is usually young to get LTC insurance, but I feel like it would be cheaper to go ahead and get it now. Any advice?
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Old 08-21-2014, 07:36 PM
 
29,782 posts, read 34,876,173 times
Reputation: 11705
Quote:
Originally Posted by southernnaturelover View Post
I live in Alabama, and supposedly this is a "partnership state" that requires special LTC plans. If I understand it correctly, if your LTC plan gets depleted, the state will allow you to keep your assets while still allowing you to qualify for Medicaid (nursing home). These plans are also supposed to keep up with rising medical costs and inflation. Anyone here have experience with this?

I'm also trying to decide if I want to get LTC insurance at all. I'm a 35 year old male, and I have no children. I have two nephews and a niece, but I don't want to depend on them to take care of me when I'm old. My home and everything I own should be paid off within 5 years, so I should be debt free in my golden years. The insurance rep I spoke with yesterday actually tried to steer me away from LTC insurance because of future rate increases, he said he feels it's going to get really bad in coming years as baby boomers age.

He said he recommends investing in a longevity annuity. I looked at them and guaranteed income does sound attractive, but my gosh most don't even start paying out until age 85. What if I got sick and needed assisted living at 80? I'd have to wait 5 more years to get any money.

I know 35 is usually young to get LTC insurance, but I feel like it would be cheaper to go ahead and get it now. Any advice?
Is Alabama wealthy enough to be able to sustain its current level os Medicaid spending for 45 more years considering demographic trends?
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Old 08-21-2014, 07:59 PM
 
Location: Floribama
15,031 posts, read 31,400,710 times
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Quote:
Originally Posted by TuborgP View Post
Is Alabama wealthy enough to be able to sustain its current level os Medicaid spending for 45 more years considering demographic trends?
I don't know. I do know they're not expanding it to cover more people (ACA), but it's possible that's a political stunt.
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Old 08-21-2014, 08:19 PM
 
29,782 posts, read 34,876,173 times
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Originally Posted by southernnaturelover View Post
I don't know. I do know they're not expanding it to cover more people (ACA), but it's possible that's a political stunt.
Over 25% of your state is living at the poverty and currently eligible. Another large segment is close to the poverty level and would become eligible. In a best case scenario you would still eventually have to pay 90 percent of the new enrollees under the expanded guidelines. You are paying full bill for those new enrollees under the old standard. Does Alabama have enough wealthy folks to pay for all of this? If in 2016 Republicans win the House, Senate and White House will federal dollars continue? You decide.
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Old 08-21-2014, 08:31 PM
 
Location: State of Being
35,885 posts, read 67,179,255 times
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Quote:
Originally Posted by TuborgP View Post
Over 25% of your state is living at the poverty and currently eligible. Another large segment is close to the poverty level and would become eligible. In a best case scenario you would still eventually have to pay 90 percent of the new enrollees under the expanded guidelines. You are paying full bill for those new enrollees under the old standard. Does Alabama have enough wealthy folks to pay for all of this? If in 2016 Republicans win the House, Senate and White House will federal dollars continue? You decide.
If memory serves me well, I believe the largest municipal bankruptcy (at the time) in the country was Jefferson County, Alabama (Birmingham) . . . won't get into the politics of that but I will say that the mismanagement and malfeasance was mind-boggling. Folks went to jail, I believe. And federal dollars were already flowing into that county for every program imaginable, from subsidized housing to Title Whatever.

I would be very cautious.
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Old 08-21-2014, 08:39 PM
 
29,782 posts, read 34,876,173 times
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^ ^^^^ very accurate. I have developed a broader sense of reality since moving south.
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Old 08-21-2014, 08:49 PM
 
Location: Floribama
15,031 posts, read 31,400,710 times
Reputation: 13841
Well I guess if the state ran out of money for Medicaid the policy would just revert to a normal LTC policy with inflation protection? Once the policy is done it's done right, regardless of what comes after it?
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Old 08-22-2014, 02:38 AM
 
71,651 posts, read 71,777,271 times
Reputation: 49241
Quote:
Originally Posted by southernnaturelover View Post
I live in Alabama, and supposedly this is a "partnership state" that requires special LTC plans. If I understand it correctly, if your LTC plan gets depleted, the state will allow you to keep your assets while still allowing you to qualify for Medicaid (nursing home). These plans are also supposed to keep up with rising medical costs and inflation. Anyone here have experience with this?

I'm also trying to decide if I want to get LTC insurance at all. I'm a 35 year old male, and I have no children. I have two nephews and a niece, but I don't want to depend on them to take care of me when I'm old. My home and everything I own should be paid off within 5 years, so I should be debt free in my golden years. The insurance rep I spoke with yesterday actually tried to steer me away from LTC insurance because of future rate increases, he said he feels it's going to get really bad in coming years as baby boomers age.

He said he recommends investing in a longevity annuity. I looked at them and guaranteed income does sound attractive, but my gosh most don't even start paying out until age 85. What if I got sick and needed assisted living at 80? I'd have to wait 5 more years to get any money.

I know 35 is usually young to get LTC insurance, but I feel like it would be cheaper to go ahead and get it now. Any advice?

partnership plans usually have perks well after the insurance ends as many use not medicaid but something called extended medicaid. we do this in ny.

we applied for a new york partnership plan and are waiting to be accepted.

in no way is a longevity annuity a replacement for ltc.

my co-worker fell off a ladder and broke broke his hip . he had a stroke during surgery and is now paralyzed on one side. he was 52. you can't assume things will only happen once an annuity kicks in down the road.

actually rates may not go up much just because few people have policies. the larger the group the cheaper it becomes and don't forget most americans will not qualify health wise mostly for obesity.

we saw rate increases that were big because the insurers mis-priced it from the start not having enough experience. the more boomers paying in to the pool the smaller the rate increases may be.


partnership plans are excellent as most are far better deals then non partnership plans.

here in ny we only need to clear 3 years not 5 , no assets have to be switched and unlike regular LTC policies the best part about the partnmership plan is income is protected from those assets.

folks don't realize typically you can shift assets but income for the spouse who does not need car has medicaid income caps once you go on medicaid.

in ny you can't have more than 2940.00 a month as the stay at home spouse unless you have a partnership plan. then you get special extended medicaid as it is called. and i8ncome can be unlimited but they do request you kick in 25% toweards the spouses care.

it is only a request and 75% of all income that is not the spouse's being cared for is yours to keep as a worst case.
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Old 08-22-2014, 08:42 AM
 
Location: Baltimore, MD
3,745 posts, read 4,219,341 times
Reputation: 6866
Thirty five IS too young. Partnership plan? I'm not confident the partnership states will be able to follow through with their promise in 10-20 years, let alone 40 or more. I suggest you revisit the issue in fifteen years.
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Old 08-22-2014, 08:48 AM
 
29,782 posts, read 34,876,173 times
Reputation: 11705
Quote:
Originally Posted by lenora View Post
Thirty five IS too young. Partnership plan? I'm not confident the partnership states will be able to follow through with their promise in 10-20 years, let alone 40 or more. I suggest you revisit the issue in fifteen years.
Bada Bing!
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