Long-term care insurance helps cover the costs of long-term services and supports at home, in an assisted living facility or in a nursing home. However, individuals with disabilities and certain health conditions may not qualify for long-term care insurance because they already need or are likely to need long-term services and supports. In these circumstances, the individual must either pay with their own resources or qualify for Medicaid or other public programs.
Long-term care insurance policies can be purchased either privately or through an employer. The applicant for long-term care insurance must decide how much daily and overall coverage to buy, the amount of the deductible and whether the benefit will inflate over time. The cost for long-term care policies is based on the purchaser’s age; the older the applicant is, the higher the cost of the policy.
Long-Term Care Insurance vs. Health Insurance
Unlike long-term care insurance, traditional forms of health insurance, including Medicare and Medicare Supplemental Insurance, are not designed to pay for long-term services and supports. Medicare does not cover most long-term services and supports costs. Medicare covers nursing home stays for not more than 100 days following a hospital stay of at least three days, and assisted living costs are not covered. Coverage for home care is limited by type and duration, focusing on rehabilitation rather than long-term care.
Connecticut has a unique option to help you pay for long-term care. Under the Connecticut Partnership for Long-Term Care, participating private insurance companies competitively sell special long-term care insurance policies. These policies not only offer quality benefits to pay for the costs of long-term services and supports, they also provide Medicaid Asset Protection. You must participate in the Connecticut Medicaid Program to be eligible for these benefits.