| Yes, you may want to consider a long term care | | | | will have a period of penalty wherein you will not |
| insurance plan if you don't want to drain your | | | | qualify for benefits. Basically, this means that you could |
| retirement savings and other investments in the future! | | | | be out of money and Medicaid will not pay for your |
| It is currently estimated that nursing home costs are | | | | nursing home care! |
| more than $10,000 per month. Imagine, how much this | | | | The other side of this new law is that even if you |
| will cost you on an annual basis if you had to pay this | | | | have not transferred your assets to someone, you |
| money out of your pocket if you needed care from a | | | | cannot have more than $500,00 in home equity. The |
| nursing home! This would be financially devastating | | | | majority of your assets including trusts and annuities |
| without long term care insurance. | | | | are viewed differently under this new law. |
| Did you know that prior to the passage of the Deficit | | | | It is important, that you consider long term care |
| Reduction Act of 2005, most Americans were able to | | | | insurance as part of your retirement planning. With |
| count on Medicaid to assist them with long term health | | | | passage of the Deficit Reduction Act of 2005, it is a |
| care. The Deficit Reduction Act changes all of that. | | | | must! Unless you are independently wealthy and don''t |
| This new law places the majority of long term health | | | | mind coming out of your pocket with more than |
| care costs on you, especially if you have assets. | | | | $10,000 per month for your prospective nursing home |
| Unfortunately, middle class Americans will be hit the | | | | care! For the average person, this would be a severe |
| hardest with this new law. | | | | financial hardship. |
| How does the Deficit Reduction Act affect me if I | | | | What age should I consider getting a long term care |
| need nursing home care and have assets? Well, for | | | | insurance plan? You may want to consider in your |
| the most part, you will need to exhaust your assets | | | | early to mid fifties. However, it is recommended that |
| before you will be eligible for Medicaid. Under this new | | | | you consult your insurance agent or financial advisor |
| law, there is a five year look back period from the | | | | about this. |
| date that you apply for your Medicaid benefits. This | | | | Planning is important, in order to assist you in eliminating |
| five year look back period, is to ensure that you have | | | | a potentially devastating financial disaster. You want to |
| not transferred assets to relatives, friends, or other | | | | live out the golden years of your retirement as stress |
| individuals. If you have transferred your assets to | | | | free as possible. So make sure you plan for your |
| someone, Medicaid will count this against you and you | | | | future long term health care needs! |