This past Tuesday a bipartisan group of senators known as the “Gang of Six” unveiled their 10-year $3.7 trillion deficit-reduction plan. Under the Gang of Six’ deficit plan, reportedly, the Community Living Assistance Services and Support (CLASS) Act, the voluntary long-term care insurance program instituted by healthcare reform, would be repealed before it began.
None of us were yet relying on the CLASS Act to pay for our long term care needs. But just how will you pay for the possible need for in-home care, assisted living, or a nursing home? As it stands the choice is to buy a long term care (LTC) insurance policy, or self-pay and hope that the money doesn’t run out. Or, if it does run out, hope that a government program will be there to pay the bill. The truth is, no matter how much LTC insurance you buy or how much money you save, it may not be enough. No one plans to go broke in a nursing home or assisted living facility. That is why pre-planning for Medicaid (Medi-Cal in California), Veterans Aid & Attendance, or other public benefits is so important as part of your overall estate plan.