Long-term Care: Should Private Players Remain In The Fray?

Medicare is significantly conspicuous by its absence in the long-term care arena. With Medicare coverage, it is expected that you fall ill and recover. However, with a population that includes so many older people, this isn’t always the case. Then where do they go for their medical coverage?

It was therefore to fill the gap that private insurance companies entered this vacuum and offered policies that promised long-term care. These policies provided a wide-spectrum coverage of long term care – both in the home or in a nursing home. However, the premiums were high and there were instances of fraud which resulted in these plans not being really feasible. Considering that over 40% of senior U.S. citizens can afford to pay for long-term coverage and less than 10% are actually covered speaks volumes for the faith people have in these instruments.

The ideal situation of course, is for Medicare to get in. Now, all that is covered should an illness strike you is one hundred days of care and what seniors have to shell out after 20 days right through to Day 100 is over $100 a day as co-pay. Now that is steep for most families. And what about long term care? Shouldn’t home and nursing home care be covered? Considering that the private players have not been able to instill confidence and trust in their coverage plans, isn’t it time Medicare becomes active in this segment?

Maybe the need of the hour is long term coverage that is funded by payroll tax. With so many growing older and growing weaker and more ill, it’s time for a long term care policy in place. So many diseases like AIDS, diabetes, multiple sclerosis, hepatitis and Alzheimer’s are not considered insurable!

What we need in this area is not private participation of companies that are in the insurance business for profit. We need plans that come under the federal aegis.