New York’s Long Term Care Sparks Concern
New York is one of the states with exorbitant long term care facilities. The recent Genworth Financial survey divulges the average cost of private nursing room is $110,960 that exceeds the national average of $67,525. Manhattan has the most expensive rate for both private and semi-private rooms in a nursing home with $459 and $438, respectively. The overall costs for other facilities are far beyond other states, particularly among rural areas.
Few people are able to dispense large sums solely for nursing home care, while 90 percent of nursing home residents are dependent on either Medicare or Medicaid. The ever-increasing LTC costs nudge many New York adults with limited or, say, scant financing option, given that both Medicaid and Medicare have intricate policies.
In New York, private pay rates are not regulated. Residents who wish to pay out-of-pocket should know the specific daily rates for the services. In case of rate adjustment, there’s a state regulation that mandates insurers to send written notification to all policyholders at least 30 days prior to the increase. Long term care facilities may also ask for prepayment or security deposit as allowed by law. Most of these facilities require full financial disclosure for private payers.
On the other hand, private insurance is another financing option that becomes popular throughout the states. However, only few policies are valid in New York. The State Insurance Department actively informs the public about long term care by comparing policies offered by various insurance carriers. This way the state is helping residents decide wisely on their private insurance and prepare for their long term care.
Medicaid is the most prominent government program that many Americans misconstrue as the saving grace for their long term care needs. Many seniors turn to Medicaid with high hopes that the program will shoulder the bills, even half of it. Medicaid requires some degree of impoverishment for qualified applicants, yet the services for successful beneficiaries are somewhat limited. The distressing reality is that many adults are incapable of paying long term care on their own, but they have excess assets that may hurdle them from qualifying for Medicaid. If all else fail, this means American adults should remain impoverished to meet Medicaid qualifications and spend down their assets they have struggles over a lifetime.
The New York Long Term Care Partnership is a collaboration of the state government and private insurance companies to help New Yorkers prepare from the financial stress of long term care. Although few residents comprehend this program, the Partnership Program fills the gap in some of Medicaid’s preposterous policies. This includes the “asset disregard,’ which allows New Yorkers apply for Medicaid without exhausting their assets and resources. The “dollar for dollar” model means the policyholder can protect assets equal to his or her benefits. Other features include inflation protection, guaranteed renewable, and reciprocity.
Keep in mind that the New York Insurance office does not sell partnership policies, but they authorize private insurance companies to do so. The participating insurance companies offering partnership policies are:
For individual policies:
- Genworth Life Insurance Company of New York
- John Hancock Life Insurance Co.
- MedAmerica Insurance Co. of New York
- Metropolitan Life Insurance Company
- New York Life Insurance Company
For group policies:
- CNA Insurance Companies
- MedAmerica Insurance Co. of NY
- Metropolitan Life Insurance Company
- Prudential Insurance Company
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