Long term care insurance: does it ensure long term care?

• Author: Gallion, Mari
• Position: Special section: Finance, Insurance & Real Estate

[ILLUSTRATION OMITTED]

Although it is rarely appropriate to generalize, most will agree: Nobody wants to think about the day that they will no longer be able to care for themselves, their spouse, or other loved ones. But due to our aging population and limited local resources and care options, it is time for us all--elders and children alike--to come up with a viable plan for ourselves and loved ones.

According U.S. Department of Health and Human Services secretary Kathleen Sibdius, the world's population is "aging at an unprecedented rate. Within the next five years, the number of people (older than) 65 will outnumber children (younger than) the age of 5 for the first time in human history." According to the U.S. Census Bureau, the life expectancy of an American resident has risen from 62.5 years to 78.2 years in the last five decades. As stated in a 2011 report by the Alaska Commission on Aging, the number of Alaskans over the age of 65 totaled 54,938 people, and is growing at a rate of 49.6 percent, more than four times the national average--this also makes seniors the fastest growing age sector in our state.

Does Alaska have the resources to address the needs of our growing senior population? The outlook is grim: The state has a total of 662 beds in certified Medicare and Medicaid skilled nursing facilities, and if a person whose insurance covers skilled nursing finds themselves in need of care, there is no guarantee that the insurance company and the incapacitated individual will agree on whether skilled nursing is warranted in their situation. In the event that one's insurance policy does indeed identify what they consider to be a "qualifying incident," such as a medical incident requiring three or more days in the hospital, the infirm individual may be put on a waiting list until a bed becomes available.

Enter the option of assisted living: According to Jane Urbanovsky, certification and licensing chief of health care services at the Alaska Department of Health and Social Services, Alaska has a total of 600 assisted living facilities, with a total bed count of 3,523 (not all of which are designated for the elderly), 400 of which are located in Anchorage, Alaska's most populated city--however, assisted living facilities vary widely in the services they provide. Based on staffing and nursing regulations, some assist with feeding, and some do not; some are authorized to administer medications, and some are not. And at a cost of $5,000...