Purchase of Long- term care insurance
The long-term care insurance is normally considered as the in-home health help or skilled nursing care which can be offered in a given facility. Many theorists consider this process as the coordination and monitoring of health care. It is believed that long-term care encompasses a wide range of assistance that gives individuals a prolonged period of time.
The long-term care insurance addresses adult daycare, respite care, assisted living, home care and home nursing. It is also important to note that age cannot be taken as the main factor in the long-term health care. Various theorists argue that people obtain long-term care insurance because it is not covered in other services like Medicare, Medicaid or health insurance (Robinson, 2002).
There are several reasons why long-term insurance is not purchased. The first reason is that it cannot keep pace with the inflation. It is clear that the hedging inflation has a cost and a short-term care plan has better benefit because insurance takers can roll back over the principal. This assists in keeping up with inflation.
Therefore, it is clear that inflation tends to affect long-term care insurance than the short-term care insurance. It is important to note that the services and products of long-term care insurance will be much expensive than today majorly due to the inflation. Finally, experts argue that the cost of long-term care insurance will increase by five percent annually due to inflation (Weiss Ratings Inc., 2002).
The second reason why long-term care insurance is not being purchased is because it is expensive. It is important to note that the cost of long-term care can be very high. It is normally very costly to pay for this kind of care through salaries or savings. But, experts argue that it is easier to pay for this program through retirement systems. The last reason is that the benefits can be taxed and this means that the care is reduced and cannot gather completely for the services required when the time of need approaches (Newhouse, 2002).
The Community Living Assistance Services and Support (CLASS) Act
The Community Living Assistance Services and Support (CLASS) Act is considered to be the public, charitable insurance service that help in promotion of community welfare. The main purpose of this program is to assist individuals with functional restrictions mainly to obtain non-medical services and support in order for them to live comfortably in the society (ACLI, 2001). The program offers: transportation, assistive technologies, personal assistance services and housing modification.
It is clear that the services discussed above cannot be provided by long-term care, health insurance, Medicaid services or Medicare services. It is important to note that employed individuals will be included in this program unless they choose not to. This program is meant to work together with other services that are meant to be long-term.
Effects of the new heath care reforms
It is clear that almost all the U.S citizens will be affected either directly or indirectly with the implementation of the Patient Protection and Affordable Care Act. The program requires most individuals to purchase health insurance and the new program will include low income earners. It is also important to note that the lifetime limit coverage is banned.
References
American Council of Life Insurers (ACLI). (2001). Life Insurers Fact Book. Washington, DC.
Newhouse, J. (2002). Pricing the Priceless: A Health Care Conundrum. MIT Press: Cambridge, MA.
Robinson, J. (2002). “A Long-Term Care Status Transition Model.” Mimeo, University of Wisconsin: Madison.
Weiss Ratings Inc. (2002). “Weiss Ratings’ Consumer Guide to Long-Term Care Insurance.” Palm Beach Gardens: Fl.