At Davis Insurance Group, our hope is to keep people informed and updated with the latest information in insurance, protection, finance, and projects close to our heart. Today, we’re talking long term care insurance again, especially as it relates to changes to Medicaid, healthcare, and more.
What’s Your Financial Future Look Like?
Recent changes to government funding show why long term care insurance is often a necessity. Many younger people are surprised to learn that, without it, nursing homes, home nurses, and other long term care options are typically almost always paid out of pocket. Medicare doesn’t cover them. Neither do most forms of private health insurance.
In the past, the only other way to pay for *any* type of long term care was to exhaust all of your finances. Medicaid, which is only available to those without significant assets, can potentially pay for some forms of long term care. Medicaid generally only kicks in when you have no many left, but at least it was there to provide some form of care for aging seniors without significant finances.
But recent events show why even this isn’t something you can rely on.
The federal government recently announced significant cuts to Medicaid. That is the funding used to cover the costs of our state program, like Statewide Medicaid Managed Care (SMMC), which is currently the program that funds state-level long term care facilities.
It’s estimated that Florida alone will experience 4 billion in cuts annually.
Whether or not this means that long term care will be less accessible remains to be seen. But what it highlights is that we cannot depend on federal support in 5, 10, 15, 20 years. We cannot assume that funding will be available, because there could always be more cuts in the future, which means less funding available for our own care.
This is why long term care insurance is so important. It is independent of your own finances and independent of changes to state and federal government funding. Medicaid funding can change at a moment’s notice based on who is in the White House, but long term care insurance is yours to keep – yours to use as you need it.
That’s why long term care insurance is so important. If you, someone you love, or even someone close to you is between the ages of 50 and 70, and might benefit from learning more about long term care insurance and related programs, have them contact me today at https://davisinsurancegroupllc.com/contact-us/. I won’t pressure you or your referrals into any product, but rather will explain more about the state of long term care and what I can do to help.