Question 1. Will my CAPLTC policy pay for long term care both inside and outside of California?
Answer 1. Yes. CAPLTC policies will pay for long term care both inside and outside of California.
Question 2. After using up my CAPLTC policy’s benefits, will Medi-Cal pay for my long term care services in another state?
Answer 2. No. You must be a California resident to purchase and receive Medi-Cal benefits. But, you can buy a CAPLTC policy, move to Arizona or any other state, use up your policy’s benefits over a number of years in Arizona or any another state, then return to California to receive a lifetime of long term care paid by Medi-Cal – while protecting the same amount of your assets as your CAPLTC policy paid in benefits.
Question 3. Which of my assets are not protected under the California Partnership for Long Term Care?
Answer 3. None. Assets equal to the benefits paid by your CAPLTC policy are protected away from Medi-Cal. This includes your cash, savings accounts, investments accounts, 529s, homes, art collections and inheritances.
Question 4. Are my assets protected outside of California?
Answer 4. Yes. Assets equal to the benefits paid by your CAPLTC are protected both inside and outside of California. For example; this includes your condominium in New York, NY, house in Santa Barbara, CA and vacation homes in Naples, FL, Maui, HI and San Diego, CA.
Question 5. What key benefits must be included in a CAPLTC policy versus a non-CAPLTC policy?
Answer 5. A CAPLTC insurance policy must cover your long term care costs in a nursing home and your own home versus many policies that only cover care in a facility (e.g.: only a nursing home). CAPLTC policies must provide minimum daily benefits of $180 per day in 2014. There are strict premium increase limits for CAPLTC policyholders that do not exist for non-CAPLTC policyholders.
Question 6. Are there any risks if I delay purchasing a CAPLTC policy?
Answer 6. Yes. The Average Daily Private Pay Rate (ADPPR) for nursing facility care in California has been rising 5% annually. For example, the price rose from $240 in the year 2013 to $260 for the year 2014.
This caused the required minimum daily benefit (70% of the ADPPR) for CAPLTC policies to increase from $170 in 2013 to $180 in 2014. If this trend continues, polices will require 5% greater benefits each year and delaying your purchase will mean buying 5% greater coverage each year.
Insurers increase pricing on new policies for older applicants, reflecting the higher probability that you will need long term care sooner. The combination of these two factors can add greatly to the cost of a policy.
Independent of your birthday and/or 5% greater benefits requirements, insurance companies can (and often do) raise rates for new applicants, subject to approval from the California Department of Insurance. Lastly, your health is likely to deteriorate over time, placing you in a higher price health class or entirely disqualifying you from purchasing long term care insurance.