More people are noticing that several states may follow the State of Washington's lead in imposing the so-called "LTC Tax" on individuals who do not own qualified Long-Term Care Insurance policies. 

Radio talk show host Gary Nolan talked about the consequences of long-term care on his national show "USA Radio Daily." Nolan referenced the problem noting that some people with Alzheimer's and other aging issues require care that can last for years. 

For family caregivers who are often thrust into the role of taking care of an older parent or other loved one, the role of caregiving isn't easy.

"It is a challenge. A challenge financially. It is a challenge mentally. The challenge doesn't end when the problem ends," Nolan said.

Matt McCann, a nationally known expert on long-term health care planning, was a guest on Nolan's show. Nolan said he has seen this personally and that caring for an aging parent is not an easy task.

McCann said that the problem of caregiving, absent any advance plan, will fall on adult children. When an older parent needs help with daily living activities or supervision due to Alzheimer's or other dementia, the spouse, if living, is usually older and unable to provide appropriate care.

"The role of caregiver often falls on a daughter or daughter-in-law. Typically they are unprepared and untrained for a role which they never planned for; they never prepared for, and completely changes their lives."

McCann told Nolan that family caregivers attempt to juggle the job of caregiving with the responsibilities of their career, their spouse, their children, and other family responsibilities. 

"The problem is once that job of being a caregiver ends the challenges that came with being a caregiver don't. They linger both phsycially and emotionally. So you get a double whammy."

Nolan asked McCann about men as caregivers. McCann noted that more men are becoming caregivers. There are various reasons why men would need to be a caregiver, but McCann said that most care recipients if given a choice, would prefer a woman, whether the caregiver is a family member or a professional.

"If you're a woman, would you want your son or son-in-law help you off the toilet, help with personal hygiene, or dress you?"

McCann said families will do what is necessary, and most care recipients feel less embarrassed with professional caregivers of any gender. Most care recipients feel more comfortable with a daughter or daughter-in-law than a son or son-in-law. 

Long-Term Care Insurance Exists

McCann said the awareness of Long-Term Care Insurance, although increasing, is still low. Long-Term Care Insurance will pay for the type of care many people in need as we get older and need help with activities of daily living or supervision due to memory loss. 

"Activities of daily living are all the things we take for granted today - eating, bathing, dressing, going to the bathroom, moving from point A to point B either due to an illness, accident, mobility problems, or the frailty of aging. Not to mention the problem of dementia and Alzheimer's."

McCann told Nolan that he thinks these problems are depressing to think about. He said because the problem is depressing, it is perhaps the reason some people block it from their minds despite being very important from a planning standpoint. People don't want to think about it until they are forced to when there is a family crisis.

While Long-Term Care Insurance can be an answer, Nolan pointed out that policies can be expensive.  

"Most people who purchase Long-Term Care Insurance in their 50s. For most people, it's affordable. The problem is the premiums can vary dramatically between company and company - over 100% for the same benefits."

What Does Long-Term Care Insurance Cost?

McCann explained that Long-Term Care Insurance is custom designed, so many financial advisors or general insurance agents solve for the most expensive but the least likely scenario. So they solve for nursing home costs.

Nursing home costs are the most expensive but the least used type of long-term health care service. 

"Most long-term health care starts at home and half end at home."

McCann also noted the growth of assisted living and adult day care, in addition to in-home care, as options for long-term care. 

"There are so many options to avoid a nursing home today. When you own a Long-Term Care policy, you obviously will have the resources to pay for your choice of quality care."

McCann discussed the family crisis that occurs when no planning is in place ahead of time. He told Nolan that families go into crisis mode. The family must pick up the pieces, attempt to manage caregiving, and avoid placing their mom or dad into a nursing home.  

"Once assets are depleted, assuming there were enough assets, to begin with, they may qualify for Medicaid," McCann told Nolan.

McCann asked Nolan if he knew the difference between Medicare and Medicaid. He did, although many people are unaware. Medicare is health insurance primarily for those people age 65 and older. Medicaid will pay for all types of health care at any age for those with little or no income and assets. 

McCann explained that we pay taxes for Medicare.

"Medicaid, however, was never designed to pay for long-term health care, however, it has become the primary payor of long-term health care in the United States."

The federal government and the states jointly fund Medicaid. McCann notes that Medicaid facilities, because of low reimbursements, are often less than adequate as far as quality of care.

LTC Tax

McCann explained to Nolan and his radio audience that about a dozen states are considering taxing residents who do not own a qualified Long-Term Care Insurance policy. The State of Washington has already implemented its tax which starts in mid-2023.  

He told Nolan that California, New York, Michigan, Minnesota, and Illinois are close to establishing their plan.

"Most of these states are the so-call blue states, but surprisingly, some states like Missouri, for example, more reddish states, are also considering this tax."

McCann notes that when you look at the budgets and the amount of money being spent on Medicaid, you can understand why states are scrambling for money. Owning a Long-Term Care Insurance policy avoids the tax.

Consequences on Family

The quality issues with Medicaid, not to mention the need to have little or money to qualify for that program, is the reason, McCann says, many families keep their parents at home. They provide the care themselves or bring in professional care. 

McCann told Nolan that untrained family caregivers face many challenges, and once mom or dad passes away, the physical and emotional don't end right away. 

"Being a caregiver is physically and emotionally tough. Family caregivers usually ignore their own health."

McCann explained that these family caregivers try to be a good son or daughter, or son or daughter-in-law, and the aftermath brings health problems, depression, and guilt.  

Planning, McCann notes, is more about family first than finances. 

"Not that finances aren't important, money is important, but it is about family and allowing loved ones to have the time to be family instead of caregivers."

McCann noted that most states have Partnership Long-Term Care Insurance plans. These federally approved insurance policies provide additional asset protection. Since the consumer can custom design their policy, they can shelter part of their estate very affordability, no matter how long they end up needing long-term health care.

McCann helps consumers nationwide prepare for the costs and burdens of aging. He represents the top insurance companies and is licensed nationwide. 

Using his unique process, McCann's clients view his computer screen on their device while speaking with him on the phone. Nothing could be safer and more convenient. Consumers can shop all the top companies from one trusted source.

Insurance premiums are regulated, and every insurance company must file their products and pricing with each state for approval before being allowed to offer any product to a consumer. 

You can get free and accurate quotes from all the top companies, along with professional recommendations -  Free and Accurate Quotes.

Media Availability

McCann is available for radio, TV, and podcast interviews. He also speaks to groups and organizations worldwide on the issues of aging, caregiving, health, and long-term care. Contact McCann through his website for information.