Long-Term Care

LTC insurance is here to stay

PPS Alert for Long-Term Care, February 1, 2011

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Although the Patient Protection and Affordable Care Act (PPACA) includes a section about a government-run long-term care (LTC) insurance program, privately funded LTC insurance providers are not going away and should continue to grow in popularity, says Jesse Slome, executive director of the American Association for Long Term Care Insurance (www.aaltci.org) in Los Angeles.

The PPACA established a national voluntary insurance program for purchasing community living assistance services and support (CLASS Independence Benefit Plan). The self-funded LTC program will not use taxpayer funds, but will allow people to purchase into the plan starting in 2013, says Slome. 

According to the PPACA, the U.S. Department of Health and Human Services Secretary will “develop an actuarially sound benefit plan that ensures solvency for 75 years; allows for a five-year vesting period for eligibility of benefits; creates benefit triggers that allow for the determination of functional limitation; and provides a cash benefit that is not less than an average of $50 per day.”

This is an excerpt from a member only article. To read the article in its entirety, please login or subscribe to PPS Alert for Long-Term Care.

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