Long-Term Care Insurance Policy for Different Color of People
The American Medical Association (AMA) estimates that medical advances have increased the average life expectancy of persons of color to 76 years. In addition, the American Medical Association (AMA) reports that persons of color have a higher rate of adverse health due to acts of violence; higher rates of disability; and higher rates of chronic health problems (e.g., HIV/AIDS; diabetes; and/or hypertension)…thus, making us more likely to need long-term care.
The Glossary of Disability and Aging defines long-term care (LTC) as the provision of a combination of health, custodial, and personal care services on a recurring basis to persons with chronic health or mental disorders in a variety of settings including one’s home. Simply put, LTC is a form of assistance with daily living skills – i.e. bathing, eating, dressing, medication management – and most persons will need it sometime during their lifetime. However, as its not “skilled” level nursing or therapy care its costs are not covered by Medicare or private supplements (Medi-Gap). Title XI of the Amendment to the Social Security Act created Medicaid – a State and Federal health insurance program for indigent individuals. Unlike Medicare – Medicaid pays for some LTC services with eligibility being based on income and personal resources.
Persons of color ~ African Americans, Asian Americans, Native Americans, and Latinos have stong culturally influenced beliefs and traditions. In fact, for persons of color care-giving is an encouraged activity and depending on birth order care-giving may be an expected part of adulthood. As a result, for persons of color – primarily women of color – care-giving is viewed as ones normal, familial or spousal responsibility.
Long-term care costs are very difficult to predict, but the need for ltc-type services will grow as the population ages. This is especially true amongst women of color who are six times more likely to have a parent born around 1945 (baby boomer) approaching retirement age and/or to end or defer careers to provide home-based care for someone other than a spouse or child.
Voluntary long-term care insurance programs with a basic benefit design were law under the Patient Protection & Affordable Care Act (PPACA) of 2010 which was ruled unconstitutional by U.S. District Judge Henry E. Hudson on December 13, 2010. The economic reality is that many Americans will – due to medical advances – outlive their finances and pose a burden to the people they love most…family.
Women of color traditionally embrace and think of care-giving as less of a subjective burden. This does not excuse lack of planning.
Is long-term care insurance part of your plan?
D. Dancy, Principal Agent
Innovative Insurance Concepts
Filed Under: Life Insurance
