Seen as a better alternative to a private insurance policy for long term care CLASS Act is starting to garner its own followers among Americans who wish to secure their future health care, but could not afford the annual premiums of private long term care insurance (LTCI).
Most of these individuals who dread the high insurance premiums either applied for LTCI policies after they've turned 65 years old, or whose health had manifested signs of a possible illness that will trigger them to seek care anytime in the next 10 years or even earlier.
With the Community Living Assistance Services and Supports Act (CLASS Act), anybody from 18 or older can qualify for full long term care (LTC) coverage should they require it in the future. All they need to do is satisfy the five-year premium which will be announced by the Secretary of the Department of Health and Human Services in October of 2012.
Reports have it that the annual premiums of the CLASS Act will be much higher than that of a private LTCI. That, however, remains to be seen so those looking for an affordable way to plan their future health care are definitely considering the Act which was authored by the late Sen. Ted Kennedy.
Paying for Long Term Care CLASS Act Style
Private insurance companies offer LTCI policyholders various premium payment modes. Those who are financially equipped can opt for the single-premium payment so they will have nothing to worry about anymore after retirement.
Through the one time premium payment, retirees can enjoy their life immediately after retirement doing activities which they did not have the freedom to do before.
Other LTCI policyholders, on the other hand, have gone for the limited payment wherein one is required to pay annual premiums for a certain period only. Most insurance companies oblige the 10-year limited payment. Oftentimes than not, within this period you are guaranteed to be protected from possible premium hikes.
The majority of LTCI policy buyers, however, still prefer the continuous-premium payment as this happens to be more affordable. After all, only a few citizens of the country can afford to set aside a fund exclusively intended for the premiums of their LTCI policies.
Meanwhile, an eligible member of the CLASS Act has to only satisfy the five-year premium to qualify for the cash benefits of this federally supported health program. Cash benefits have a minimum amount of $50 but this can go higher depending on the gravity of one's disability or cognitive impairment.
Before the Secretary of Health and Human Services can determine how much should be allotted to a member of the Act who claims cash benefits, a health care professional should have observed the individual first.
To determine if one is qualified to claim cash benefits for long term care CLASS Act will ascertain he is incapable of performing two or more of the six activities of daily living which are eating, bathing, dressing, continence, toileting, and transferring from one point of the house to another.
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