CFG Healthcare & Long-Term Care Planning Flashcards

Which government program is the primary payer for long-term care services in skilled nursing facilities for low-income older adults in the US?

Answer: Medicaid

Medicaid is the primary payer for long-term care services in skilled nursing facilities for individuals who meet income and asset eligibility requirements.

What is the primary purpose of a Health Savings Account (HSA) in long-term care planning for older adults?

Answer: To accumulate tax-advantaged funds for qualified medical expenses

HSAs allow individuals to accumulate pre-tax dollars that grow tax-free and can be withdrawn tax-free for qualified medical expenses, making them a valuable long-term care planning tool.

Which Medicare part covers hospice care for terminally ill beneficiaries?

Answer: Medicare Part A

Medicare Part A covers hospice care for beneficiaries with a life expectancy of six months or less who choose comfort care over curative treatment.

What is a 'Continuing Care Retirement Community' (CCRC) and what financial instrument is typically required at entry?

Answer: A community offering multiple care levels requiring an entrance fee plus monthly fees

CCRCs provide a continuum of care from independent living to skilled nursing and typically require a substantial entrance fee (often $100,000–$1,000,000) plus ongoing monthly fees.

What is the 'elimination period' in a long-term care insurance (LTCI) policy?

Answer: The waiting period before benefits begin after a qualifying event

The elimination period is the deductible waiting period—typically 30, 60, or 90 days—during which the policyholder must pay for care before insurance benefits begin.

Which of the following activities of daily living (ADLs) is NOT typically included in the standard six ADLs used to trigger long-term care insurance benefits?

Answer: Driving

The standard six ADLs for LTCI benefit triggers are bathing, dressing, eating, toileting, transferring, and continence; driving is not included.