MONEY: The Gooferment’s Long Term Care Insurance in Obamacare

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Comparing CLASS to private sector LTC coverage. We’re pleased that the government is attempting to offer long-term care insurance, but CLASS doesn’t eliminate the need for you to buy a policy from private health insurers. First, CLASS’s daily benefit of $50 or $75 is woefully insufficient, considering that the average daily cost of a nursing home is $206, according to the 2010 Genworth Cost of Care survey, and that licensed in-home health aides today cost an average of $19/hour. Making these figures even worse is the fact that they are projected to be $268 and $21, respectively, when CLASS benefits become available in 2016. And unlike long-term care insurance you purchase, the government’s program is not a contract; benefits and costs can change.

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In the meantime, do not let the notion of the CLASS program cause you to delay getting your own LTC insurance if your planner has recommended it for you. It’s unlikely that CLASS will meet all your LTC insurance needs, but even if it does, you should buy LTC insurance today to get the protection you need; you can always cancel the policy later, after you sign up for CLASS.

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IMHO, getting old sucks. Pattie wiped out her little bit of lifetime savings in under a year. My Mom was forking out 10k$/month for “help” as she struggled to stay in her apartment. Anyone listening should have sufficient appropriate insurance.

It’s a funny peculiar calculation. If you have nothing, you need nothing; you get Medicaid. If you have 10M$, you need nothing; you’ll self-insure. Anything in the middle, you HAVE to have insurance. Where the middle starts and ends is arts not science. Argh!  

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