The Genworth Financial names Oklahoma as the sixth state with wide choices as well as the most affordable nursing home services in the entire United States. The results are based on the recent study of Genworth Financial's Choice and Affordability Index.
Based on reports, nursing homes range $48,000 and above a year stay in Oklahoma, and the costs continue to rise sharply over the five year period. The rates are found highest in Oklahoma City. Meanwhile, the hourly rates of Medicare-certified home health aide have escalated in the last five years. It is disheartening for care-giving families who are compelled to spend down large money of at least $89,378 a year for home care services.
Most taxpayers and all residents believe that Medicaid and Medicare would cover the expenses for long term care. Ironically, these publicly-funded programs do not cover long term care and leave the burden on the shoulders of Oklahomans and their caregiving families. The program of Medicaid or "SoonerCare" health care has stringent policies in providing care for qualified applicants; thus, many residents feel the program is useless as ever. The program prioritizes applicants with maximum of $2,000 savings and $2,022 gross income. Once eligible, all of the applicant's income, exclusive of $50 personal monthly allowance, must pay the nursing home costs.
Moreover, to qualify for Medicaid, all applicants are not allowed to simply transfer their assets to heirs or put them in an irrevocable trust. The gifts or transfer of assets must had occurred prior to five years of application for Medicaid eligibility benefits. Failure to comply on this rule will require the applicant to personally pay the long term care costs. Revocable trust is exempted from Medicaid eligibility benefits. In 2009, SoonerCare paid long term care costs for more than 21,000 Oklahomans. Nursing home care received the highest budget with 13 percent of Medicaid's $3.9 annual expenditures.
Oklahomans, who haven't purchased private insurance plan, have no option but pay for LTC costs themselves until their assets reach the amount allowed by State Medicaid program. Residents need to follow the stringent rules including the transfer of assets that make the eligibility process horrible.
Oklahoma Long Term Care Insurance Partnership
The Oklahoma Long Term Care Insurance Partnership is a joint effort of the State of Oklahoma and private insurance industry to address the increasing demands for long term care, while aspiring to reduce the financial impact on residents and caregiving families. The Oklahoma Health Care Authority, the Oklahoma Insurance Department, and private insurance companies join hand-in-hand to provide policies that provide maximum benefits such as asset disregard and inflation protection.
The asset disregard benefit deals with the most excruciating problem when applying for Medicaid -- the asset limit. Through this benefit, applicants may protect assets as much as they want to, but still qualify for Medicaid coverage. Therefore, Oklahomans can receive LTC without exhausting their hard-earned assets and lifetime's savings for SoonerCare. Partnership policies ignore the amount of assets a person have when determining the eligibility benefits, and the amount received from policy benefits is equal to assets that can be protected or called the dollar-for-dollar protection.
The inflation protection protects policyholders from the increasing costs of long term care services. A minimum of 3 percent inflation benefit is included on policies for people aged 60 and below. The inflation benefit is optional for those aged 76 and above.