CRPC Long-Term Care Planning 1 — Questions and Answers
Question 1: What is the national median daily cost of a private room in a US nursing home?
- $100
- $200
- $300 (Correct answer)
- $400
Correct answer: $300
The national median cost for a private nursing home room is approximately $300 per day, or about $108,000 per year.
Question 2: Which type of care is NOT typically covered by traditional Medicare?
- Short-term skilled nursing facility care
- Long-term custodial care (Correct answer)
- Inpatient hospital stays
- Home health care following hospitalization
Correct answer: Long-term custodial care
Medicare does not cover long-term custodial care such as assistance with activities of daily living.
Question 3: What role do Activities of Daily Living (ADLs) play in long-term care insurance policies?
- They determine the premium amount
- They serve as a benefit trigger (Correct answer)
- They calculate inflation adjustments
- They set the elimination period
Correct answer: They serve as a benefit trigger
Inability to perform a specified number of ADLs (typically 2 of 6) triggers long-term care insurance benefits.
Question 4: What is the elimination period in a long-term care insurance policy?
- A waiting period before benefits begin (Correct answer)
- The maximum benefit duration
- An inflation protection rider
- The period during which premiums are waived
Correct answer: A waiting period before benefits begin
The elimination period is a time-based deductible (typically 30–90 days) during which the insured pays out-of-pocket before benefits begin.
Question 5: Under which federal provision are premiums for qualified long-term care insurance contracts deductible as medical expenses?
- ACA qualified health plan rules
- HIPAA qualified LTC contract standards (Correct answer)
- ERISA group plan requirements
- COBRA continuation coverage rules
Correct answer: HIPAA qualified LTC contract standards
HIPAA established standards for qualified LTC insurance contracts whose premiums are deductible as medical expenses subject to age-based limits.
Question 6: What is the typical countable asset limit for a single Medicaid applicant seeking nursing home benefits?
- $2,000 (Correct answer)
- $10,000
- $25,000
- $50,000
Correct answer: $2,000
In most states, a single Medicaid applicant must reduce countable assets to approximately $2,000 to qualify for nursing home benefits.
CRPC Long-Term Care Planning 1
What is the national median daily cost of a private room in a US nursing home?