Can't Afford a LTC Insurance Policy? Consider Cutting the Length of Coverage
Most people can't afford to buy a gold-plated long-term care insurance policy that offers a large daily benefit . . ....
Read moreThe U.S. Court of Appeals for the Tenth Circuit has ruled that a long-term care policyholder who moved to a residential care home is not entitled to benefits because the home does not meet the policy's definition of "nursing home." Gillogly v. General Electric Capital Assurance Co. (10th Cir., Nos. 04-7026, 04-7032, 04-7042, Dec. 12, 2005).
In 1989 Russell Gillogly purchased a long-term care insurance policy from a company that later became General Electric Capital Assurance Company (GECA). The policy provided a fixed daily benefit for an inpatient stay in a nursing home. The term "nursing home" was defined as a facility "licensed . . . to engage primarily in providing nursing care and related services to inpatients." In 2001 Mr. Gillogly began residing at the Van Buren House (VBH), which is part of a larger regional health center. When Mr. Gillogly tried to collect on his policy to pay for his care, GECA declined, claiming that VBH was licensed by the Oklahoma Department of Health as a "residential care home," not a "nursing facility."
Mr. Gillogly sued GECA, arguing that because the policy covers custodial care, it should cover custodial care in a facility licensed as a residential care home, and that VBH is a properly licensed facility because it is part of a larger health center that provides nursing care. A U.S. district court found that GECA had breached its contract with Mr. Gillogly, and a jury awarded him $4 million in damages. GECA appealed.
The U.S. Court of Appeals for the Tenth Circuit reversed, ruling that VBH does not qualify as a "nursing home" under the GECA policy. "At the time that Gillogly submitted his request for benefits," the court writes, "[Oklahoma's] Residential Care Act defined 'residential care home' as a facility whose residents shall not 'routinely require skilled nursing care or intermediate care.' "
For the full text of this decision, go to: https://www.kscourts.org/ca10/cases/2005/12/04-7026.htm.
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Read moreIn addition to nursing home care, Medicaid may cover home care and some care in an assisted living facility. Coverage in your state may depend on waivers of federal rules.
READ MORETo be eligible for Medicaid long-term care, recipients must have limited incomes and no more than $2,000 (in most states). Special rules apply for the home and other assets.
READ MORESpouses of Medicaid nursing home residents have special protections to keep them from becoming impoverished.
READ MOREIn addition to nursing home care, Medicaid may cover home care and some care in an assisted living facility. Coverage in your state may depend on waivers of federal rules.
READ MORETo be eligible for Medicaid long-term care, recipients must have limited incomes and no more than $2,000 (in most states). Special rules apply for the home and other assets.
READ MORESpouses of Medicaid nursing home residents have special protections to keep them from becoming impoverished.
READ MORECareful planning for potentially devastating long-term care costs can help protect your estate, whether for your spouse or for your children.
READ MOREIf steps aren't taken to protect the Medicaid recipient's house from the state’s attempts to recover benefits paid, the house may need to be sold.
READ MOREThere are ways to handle excess income or assets and still qualify for Medicaid long-term care, and programs that deliver care at home rather than in a nursing home.
READ MORECareful planning for potentially devastating long-term care costs can help protect your estate, whether for your spouse or for your children.
READ MOREIf steps aren't taken to protect the Medicaid recipient's house from the state’s attempts to recover benefits paid, the house may need to be sold.
READ MOREThere are ways to handle excess income or assets and still qualify for Medicaid long-term care, and programs that deliver care at home rather than in a nursing home.
READ MOREMost states have laws on the books making adult children responsible if their parents can't afford to take care of themselves.
READ MOREApplying for Medicaid is a highly technical and complex process, and bad advice can actually make it more difficult to qualify for benefits.
READ MOREMedicare's coverage of nursing home care is quite limited. For those who can afford it and who can qualify for coverage, long-term care insurance is the best alternative to Medicaid.
READ MOREMost states have laws on the books making adult children responsible if their parents can't afford to take care of themselves.
READ MOREApplying for Medicaid is a highly technical and complex process, and bad advice can actually make it more difficult to qualify for benefits.
READ MOREMedicare's coverage of nursing home care is quite limited. For those who can afford it and who can qualify for coverage, long-term care insurance is the best alternative to Medicaid.
READ MOREDistinguish the key concepts in estate planning, including the will, the trust, probate, the power of attorney, and how to avoid estate taxes.
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READ MOREWe need to plan for the possibility that we will become unable to make our own medical decisions. This may take the form of a health care proxy, a medical directive, a living will, or a combination of these.
READ MOREDistinguish the key concepts in estate planning, including the will, the trust, probate, the power of attorney, and how to avoid estate taxes.
READ MORELearn about grandparents’ visitation rights and how to avoid tax and public benefit issues when making gifts to grandchildren.
READ MOREUnderstand when and how a court appoints a guardian or conservator for an adult who becomes incapacitated, and how to avoid guardianship.
READ MOREWe need to plan for the possibility that we will become unable to make our own medical decisions. This may take the form of a health care proxy, a medical directive, a living will, or a combination of these.
READ MOREUnderstand the ins and outs of insurance to cover the high cost of nursing home care, including when to buy it, how much to buy, and which spouse should get the coverage.
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READ MOREUnderstand the ins and outs of insurance to cover the high cost of nursing home care, including when to buy it, how much to buy, and which spouse should get the coverage.
READ MOREWe explain the five phases of retirement planning, the difference between a 401(k) and an IRA, types of investments, asset diversification, the required minimum distribution rules, and more.
READ MOREFind out how to choose a nursing home or assisted living facility, when to fight a discharge, the rights of nursing home residents, all about reverse mortgages, and more.
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READ MOREGet a solid grounding in Social Security, including who is eligible, how to apply, spousal benefits, the taxation of benefits, how work affects payments, and SSDI and SSI.
READ MORELearn how a special needs trust can preserve assets for a person with disabilities without jeopardizing Medicaid and SSI, and how to plan for when caregivers are gone.
READ MOREExplore benefits for older veterans, including the VA’s disability pension benefit, aid and attendance, and long-term care coverage for veterans and surviving spouses.
READ MORE