Oregon Launches New Long-Term Care Insurance Partnership
The State of Oregon is easing the financial burdens of aging for many elders by initiating a new Long-Term Care Insurance Partnership Program with private insurers. The new program, which began January 1, 2008, will benefit about 25 percent of the seniors in Oregon who are of modest or limited income.
It will erase one of the biggest fears that modest income seniors have–that they will have to spend down to their last $2000.00 before the federal Medicaid program will pick up the cost of their nursing home care. The new Partnership Program will make it possible for seniors who qualify to preserve some of their assets to pass on to their heirs.
Along with the benefits of increased longevity in our county, have come the greater likelihood that a person will need some type of long-term care in their old age–in fact, 60 percent of Americans will need that care during their lifetime. And that can take a wallop out of a person’s savings. In Portland, the average cost of a year in a nursing home is about $60,000, and that is expected to double in the next 15 years.
As our population ages, and the huge baby boomer generation begins to retire, government resources will be squeezed. That is a big reason the federal government is encouraging Americans to take personal responsibility–for themselves and for the elderly members of their families–by planning ahead for the care they will need in their old age.
Many middle and upper income Americans are taking out long-term care insurance policies to help pay for the care they will need later in life. The new Long-Term Care Insurance Partnership Program that Oregon is launching January 1st is an important step in offering coverage to Oregonians of limited means.
A key feature of the new program, in addition to Medicaid asset protection, is inflation protection. The State also sets consumer protection standards and makes sure that seniors cans choose a policy that best meets their needs. Both the state and federal government will provide educational resources to let seniors know who qualifies for the new Partnership Program and how to find a participating insurance provider.
Seniors and their families can contact a Long-term care Specialist to learn more about long-term care options available.
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