Long-Term Care Trends in Missouri

Based on the study conducted in 2007, there areMissouri Long Term Care Partnership Program was
approximately 86,000 elders in Missouri aged 65 andinitiated on August 1, 2008 to fulfil the requirements of
above, suffering from serious illnesses and disabilitiesthe Deficit Reduction Act of 2005. This program is the
that most likely entail long term care. Reportedly,participation of private insurance companies and the
Missouri is equipped with nursing home facilities thatstate government - the Missouri Department of
made the state grab the fifth place for the highestInsurance, Financial Institutions & Professional
nursing facility beds in United States. Missouri had theRegistration (DIFP). The Missouri Medicaid Program
high occupancy rate of 74 percent in 2007, while in(administered by Missouri Department of Social
2007 the state is the 35th least expensive nursingServices: Family Support Division) and the Missouri
homes in the country.State Health Insurance Assistance Program or CLAIM
Individuals have used out-of-pocket expenses for longhave their share in assisting Medicaid and LTC planning.
term care, and long term care insurance companiesWith ever-increasing Missouri long term care costs, the
provide only a small portion of these expenditures. Thepartnership program works with high hope of
majority or 65% of elders rely on home care orencouraging people to invest on LTC services rather
informal care givers due to lack of help from Medicaidthan heavy dependence on the state's Medicaid
or Medicare and very few can afford the high costsprogram.
of these services.The most distinct feature of partnership program is the
Medicaid bears the brunt of long-term careasset protection. Normally, people have to deplete their
expenditures because the program is the primaryfinances to qualify for Medicaid assets; however with
source of funding for health care. In 2005, Missouri hadpartnership program, they may retain the assets they
an estimated 23 percent of Medicaid spending, rankingwish to have, but remain eligible for Medicaid benefits. It
Missouri 43rd among the 50 states with high LTCuses the dollar-for-dollar protection model, wherein
Medicaid expenditures. In 2005, there are 80,000every dollar in the policy that pays for the benefits is
Missourians age 65 and above who used Medicaidequal to the dollar of the amount of assets that will not
Insurance to finance long term care costs.be counted for Medicaid eligibility.
Unfortunately, Medicaid does not cover long term care,Another feature is the inflation protection. Recipients
and only pays for acute illnesses with short duration.below the age 65 at the time of purchase should
On the other hand, Medicaid will pay for institutional andreceive 5 percent compound annual protection;
home-based care for shorter period of time.however, if the individual is against this rule, a minimum
In response to the growing need for long-term care,of 3 percent or changes on the consumer price index
the state of Missouri coalesced with private insurance(CPI) must then apply.
providers to create a partnership program. The