Does Medicaid cover long-term care?

Yes, but to qualify for Medicaid, you must have a very low income and assets. More information is available through the D.C. Department of Health Care Finance at dhcf.dc.gov or by calling (202) 442-5988.

How do you know if long-term care insurance is right for you?

The decision to get long-term care insurance is influenced by age, health, retirement plans, income, and assets. For example, if your only source of income is Social Security or Supplemental Security Income (SSI), you should generally avoid purchasing long-term care insurance since you may be unable to afford the cost. Also, if you have a lot of assets but don’t want to utilize them to pay for long-term care, you may consider purchasing a long-term care insurance policy.

Many people get an insurance because they wish to be self-sufficient and not rely on government assistance or family members to care for them. However, you should not purchase a policy if you cannot afford the premium or are unsure that you will be able to pay the premium for the remainder of your life.

What is the distinction between a tax-qualified plan and a non-tax-qualified plan?

Tax-qualified long-term care benefits usually are not taxable as income. Benefits from a non-qualified long-term care plan are potentially taxable as income. In addition to the personal tax repercussions, consult with your tax counselor about the possibility of deducting a portion of the premiums paid.

Are there any pre-existing condition restrictions?

A pre-existing ailment is typically defined in a long-term care insurance policy as one for which you received medical advice or treatment or experienced symptoms within a particular time before applying for the procedure. Some businesses look back further than others. Many insurance firms will sell a policy to someone with a pre-existing ailment.

However, the firm may refuse to pay benefits for long-term care connected to such conditions for six months after the policy is enacted. Some companies have a lengthy pre-existing condition waiting periods, while others do not.