Will You Ever Need Long Term Care?

By Scott Culver
Communications Specialist
WEA Trust

February 2001

Most of us see long term care (LTC) as something we might need in old age and something that will be paid by the government.

Misconceptions such as these are common. Because the need for LTC is unpredictable, not planning for its possibility can put your financial security at risk. This article will explain the basics of LTC and show why LTC insurance is a key protection all public school employees should consider.

What is LTC?
Long term care is for people who are cognitively impaired or who are incapacitated and regularly need assistance with certain everyday activities. For example, people who are not able to feed or bathe themselves or perform other necessary activities of daily living without help need long term care assistance.
This assistance, called either custodial or long term care, can come in a variety of settings and ways. The most familiar setting for LTC is a nursing home, but in many cases necessary care comes from family members, a visiting nurse or care person, or is provided in an assisted-living facility.

Are you likely to need LTC?
The need for LTC is unpredictable, but the odds of entering a nursing home and staying for long periods increase with age. According to The Wall Street Journal, for a couple turning 65, there is a 70% chance that one of them will need LTC.
Younger adults are not immune to LTC. Working-age adults between ages 18 and 64, who are more likely to face motor-vehicle accidents and illnesses such as muscular dystrophy or multiple sclerosis, can also require LTC.

What is the cost?
Long term care costs can be very expensive. The national average cost for a year in a nursing home is estimated at $45,000. While care received at home is cheaper, the costs add up. The Health Insurance Association of America says bringing an aide into your home three times per week to help with dressing, bathing, meal preparation, and other chores can easily cost $1,000 per month. Add skilled help, such as a physical therapist, and these costs can be much greater.

Over the course of a lifetime, according to the American Health Care Association, the average American man can now expect to require $56,895 worth of LTC services, and the average woman $124,370.

WEA Trust offers two plans
Health insurance and Medicare do not pay for LTC; these programs are designed for medical care, and most LTC costs are not for medical services. Medicaid, the state and federal health program for the poor, does pay for LTC, but only for people who meet the program’s financial requirements.

You could pay LTC costs out of pocket, but the expenses will likely overwhelm your resources. Many people wipe out their life savings within months of entering a nursing home.

The WEA Trust offers two insurance plans so all WEAC members have access to LTC protection. Our group policy is the most cost-effective and economical way for members to obtain LTC insurance.

This plan has already been bargained in 83 school districts throughout the state. To get the group LTC policy, you will have to let your negotiating team and local union leaders know of your interest because the policy must be negotiated.

Our group plan includes an inflation protection benefit, which maintains the value of the plan over time. This plan also covers long term care services in a variety of settings, including nursing facilities, adult day centers, community-based residential facilities, and even in your own home.

We also offer one of the best individual LTC plans. This plan was developed for WEAC members who don’t have the group plan available to them. This includes inactive or retired members, and active members in districts that have not bargained the group plan.It is also available to the parents of members and their spouses.

Our individual policy premium rates are guaranteed for five years. Lower premiums are offered for married couples when both participate and for those who make healthy lifestyle choices. With an individual plan, you can tailor the daily and lifetime coverage to your needs and your financial means.