Part of protecting estate could be long-term care coverage

<p>NORTH BAY – With the North Bay's elderly population growing rapidly, the clock is ticking toward the need to plan for the potential of long-term care.</p><p>"Most articles coming out now say this is the missing part of financial planning that most people don't talk about," said Ken Beck, vice president of investments at Wachovia Securities in Santa Rosa.</p><p>Long-term care is assistance with daily activities such as dressing and bathing and does not include medical care. A California agency working to educate people on the importance of planning says two out of three Californians will need some sort of long-term care as they age. </p><p>Some estimates indicate that the cost of care can average $70,000 per year. Usually, unless an individual qualifies as extremely low income, this type of care is not covered by Medicare, the government's health insurance program for the elderly. </p><p>To qualify for Medi-Cal, people must meet eligibility requirements that include having very few assets. </p><p>There are 35,000 Santa Rosans 55 and older now, and Santa Rosa's elderly population is set to increase by as much as 150 percent by 2020.</p><p>Most of those who could need long-term care must either buy insurance or plan a way to self-fund their long-term care needs. </p><p>As with other health insurance plans, as health declines and people age, insurance premiums rise. Eventually those with the most expensive health needs won't qualify for long-term care insurance.</p><p>"Making these decisions while you're still reasonably healthy is extremely important," said Harry Rubins, financial consultant with Rubins Financial Strategies and the manager of Foothill Securities in Santa Rosa.</p><p>He said generally there are three- to six-year plans and lifetime plans. The policies typically have a monthly premium and provide coverage for in-home or nursing-home care within certain cost and time limits.</p><p>A collaboration between the state's Partnership for Long-Term Care in the Department of Health Services and private insurers launched last year developed state-supported plans that offer some asset protection while still allowing policyholders to qualify for Medi-Cal. </p><p>The plans include inflation protection so the consumer won't pay more out-of-pocket when the cost of care rises. Plus, partnership policies allow policyholders to choose where they receive care – whether it's at home or in a facility.</p><p>Non-partnership policies can't offer the protection of assets against Medi-Cal spending.</p><p>The city of Santa Rosa was the first city in the state to launch a campaign in the last three months of 2006 to educate people on how to plan for long-term care by conducting free seminars. More seminars are planned beginning in March.</p>