CFG CFG Healthcare & Long-Term Care Planning 1 — Questions and Answers
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?
- Medicare
- Medicaid (Correct answer)
- TRICARE
- Veterans Affairs
Correct 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.
Question 2: What is the primary purpose of a Health Savings Account (HSA) in long-term care planning for older adults?
- To pay Medicare Part A premiums
- To accumulate tax-advantaged funds for qualified medical expenses (Correct answer)
- To fund Medigap insurance premiums
- To cover Social Security gaps
Correct 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HSAs allow individuals to accumulate pre-tax dollars that grow tax-free and can be withdrawn tax-free for qualified medical expenses, making them a valuable long-term care planning tool.
Question 3: Which Medicare part covers hospice care for terminally ill beneficiaries?
- Medicare Part A (Correct answer)
- Medicare Part B
- Medicare Part C
- Medicare Part D
Correct 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.
Question 4: What is a 'Continuing Care Retirement Community' (CCRC) and what financial instrument is typically required at entry?
- A nursing home requiring monthly rent only
- A community offering multiple care levels requiring an entrance fee plus monthly fees (Correct answer)
- A Medicare-certified facility with no upfront cost
- A government-subsidized senior housing program
Correct 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.
Question 5: What is the 'elimination period' in a long-term care insurance (LTCI) policy?
- The period during which benefits are reduced due to inflation
- The waiting period before benefits begin after a qualifying event (Correct answer)
- The maximum period benefits will be paid
- The period after which premiums are waived
Correct 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.
Question 6: 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?
- Bathing
- Dressing
- Driving (Correct answer)
- Continence
Correct answer: Driving
The standard six ADLs for LTCI benefit triggers are bathing, dressing, eating, toileting, transferring, and continence; driving is not included.
CFG CFG Healthcare & Long-Term Care Planning 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?