CFG CFG Healthcare & Long-Term Care Planning

Question 1

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

Accepted Answer

Medicaid

Answer

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

Question 2

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

Accepted Answer

To accumulate tax-advantaged funds for qualified medical expenses

Answer

HSAs allow individuals to accumulate pre-tax dollars that grow tax-free and can be withdrawn tax-free for qualified medical expenses, making them a valuable long-term care planning tool.

Question 3

Which Medicare part covers hospice care for terminally ill beneficiaries?

Accepted Answer

Medicare Part A

Answer

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

Question 4

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

Accepted Answer

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

Answer

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.

Question 5

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

Accepted Answer

The waiting period before benefits begin after a qualifying event

Answer

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.

(CFG) Certified Financial Gerontologist Practice Test

(CFG) Certified Financial Gerontologist Practice Test

CFG CFG Healthcare & Long-Term Care Planning