Long Term Care Provider's Medicaid and Medicare Dilemma

Medicaid typically pays Long Term Care providers up to 85% of the true cost of care.

Previously, many nursing homes turned themselves into facilities focusing almost exclusively on Medicare covered services. Even hospitals were setting aside skilled-nursing wings as a way to continue receiving Medicare money. However, today, don't expect Medicare to be much help. Medicare was never designed to provide any long term care, unless it is skilled care, which represents only about 0.5% of all patients. The same facilities that were once adding skilled nursing beds have been forced to reduce or remove them all together. Due to swift tightening of Medicare rules and budget cut-backs.²² The sweeping changes in Medicaid and Medicare have resulted in the bankruptcy of many, many small and large healthcare companies.

Dr. Robert L. Kane, director of the Center on Aging at the University of Minnesota, states, "Private pay allows a person to buy more or better care, except in a few states that require services and costs to be identical whether payment is from a public or private source. Furthermore, private reimbursement may allow greater flexibility and choice. Private funds can be used to purchase a wider variety of services under more creative arrangements, while public funds cover only a limited set of authorized services. Much of the innovation in LTC has occurred in the private sector, such as assisted living and continuing care retirement communities. Beyond asset protection, the other reasons for considering private LTC insurance all relate to the quality of the package offered by Medicaid. In effect, the less attractive the Medicaid package, the more enticing private LTC insurance becomes."

City Bank's Long Term Care Insurance Plan is underwritten by Unum Life Insurance Company of America, the world leader in income and lifestyle protection. Unum Life Insurance Company of America is the nation's leading disability insurer²⁴ and is one of the pioneers in providing Long Term Care Insurance.

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