LTC Bullet: Update on the Federal Government's
LTC Insurance Plan
Wednesday January 27, 1999
According to Mike Causey, writing in a "Washington Post"
column entitled "Long-Term Coverage in the Short Term"
published January 25, 1999 (www.washingtonpost.com):
"Federal workers and retirees who have delayed buying private
long-term-care insurance in hopes the government will offer them
a better deal may want to stop playing the waiting game. It might
be wise to buy a long-term-care insurance policy as a gap-filler
until the government program is a reality." Causey says
the Feds' plan "is still at the talking stage. There are
still months of hearings, then House and Senate votes, then conferences
before any bill is sent to the White House. Nobody knows what
the package will contain, what the premium will be or whether
it will be effective next year or later." In the meantime,
anyone can get clobbered by long-term care anytime: "Long-term
care isn't just for middle-aged and older people. Anybody, at
any age, can suddenly find themselves in need of skilled care,
at home or in a nursing home. Few people have the money to cover
it -- especially if they are out of work." Besides, the
federal plan has some aspects that may not warrant waiting for:
age, presumably, will be the only factor that determines
the group premiums. What that means, some insurance experts say,
is that the overall premiums may be relatively high for everybody.
If that is the case, younger (and healthier) individuals may
well be able to buy a good long-term-care insurance policy from
a private firm at individual rates that will be cheaper than the
coverage available to them under the proposed federal program."
Wise counsel from the Post's federal beat columnist! If anyone
out there knows Mr. Causey's e-mail address, we'd sure like to
invite him to receive "LTC Bullets."