Are you doing what you can to protect your future health care needs, while you still have the option? There is little we can do after our government makes changes to a law or creates a new law and puts restrictions on what is available to us as Americans. As seen in the latest Supreme Court drafted ruling, the overturn of Roe v Wade will give each individual state the ability to decide weather to restrict or ban abortion. We’d like to think health care is a guarantee, but this leaked Supreme Court document reminds us that the government can change their mind at the drop of a hat. It’s up to us as individuals to make sure our health needs will be met.

Take action and put a hybrid long term care insurance plan in place now while you still can. There is no way of knowing what the future holds for long term care services and as we have stated previously in a separate post,(add link to that post) Medicaid funding for long term care is already declining and has been for years. This is just the start of limited government funds for long term care services. Each state already has the ability to determine a plan of action for long term care funding separate from one another. 

Washington State recently implemented the WA Cares Fund act. This law was implemented to help make long term care more affordable however, all employed residents must pay an additional tax to fund this act. The benefits for long term care funds are limited to $36,500 a year per person. An amount that may cover up to 20 hours of care per week for at-home care services for up to one year.This is only a fraction of what it would cost should you need more than 20 hours a week of home care in one year period of time. What if you decide to go to a facility for care? That could be a difference of nearly $71,500 a year in out of pocket expenses for you to cover. If you think you might need more coverage, you can decide to supplement the WA Cares Fund act with a private LTCI policy, but one should question if it’s worth it at that point to rely on the WA Cares Fund Act especially when taking into consideration the taxes you are paying for this act to be in force. To put this in simpler terms, for every $100 dollars you earn, $00.58 is pulled out as a tax for this Act. I know this is a small number upfront but let’s add this up. If you earn $100,000 a year, that is $580.00/year (approximately $50/month) coming out of your paycheck each year to help fund the care of others while they need it now and for you in the future should you need long-term care services. If you are in your 50’s you will more than likely be paying this tax for another 15 to 20 years depending on when you decide to retire. 

We would argue that you could use that taxed money of approximately $50/month plus a little extra and put it towards an LTCI policy starting around your late 40’s to early 50’s and let your benefits grow with a 3% compounding inflation rider. This in turn generates an immediate LTCI benefit of around $108k/year (these are hypothetical numbers for a male aged 50 living in Washington). By the time you are in your 80’s and are more likely to need long term care, this hypothetical  LTCI plan will have grown to nearly $262k/year. The WA Cares Act of $36,500/year doesn’t even come close to what private funding with a hybrid LTCI policy can give you in terms of long term care benefits.

Where you live matters when it comes to long term care. Currently, California state has assembled the California Long Term Care Insurance Task Force, and their goal is to enact a law very similar to the WA Cares Fund Act. Once again, the government is stepping in and deciding what’s best for our health care services and how we can fund those services. Take action and get a private plan in place now while you still can! The state you live in may decide to follow the footsteps of Washington and California when it comes to long term care.  You may not have known but the state you reside in might have lower LTCI premiums than others as each state has their own regulations for this type of product as well as the companies that are contracted within each state to sell LTCI policies. Preparing for this matter now could save you thousands in the long run. 

In Conclusion

This possible decision on Roe V Wade points towards a time in American politics where states are in charge of more and more for health care. By going with PrepSmart you will have access to an insurance broker licensed in all 50 states. They can help you figure out which plan and company works best for you and your family. Because PrepSmart is a broker and not an agent we are working for you and not the insurance company. During these times of political uncertainty it’s important to ensure that your health will be taken care of in the future. You can’t count on the government to take care of you. It’s up to you to protect yourself and your family.