Hybrid insurance policies are replacing classic long-term care insurance in Texas and around the country. The classic long-term policy has a major disadvantage -- if the coverage is not needed by the insured individual, the premiums paid are totally lost with no return on the investment. That is why hybrid policies, which combine long-term care planning benefits with life insurance or a fixed annuity, are selling far better than traditional coverage.
The federal government recently announced certain financial expansions of Medicaid Services pertaining to long-term care facilities and other health care providers nationwide, including in Texas. The Centers for Medicare and Medicaid Services announced that it will permit states to request 90 percent enhanced matching funds to assist long-term care facilities and others to improve their services. This should prove to be positive news for the elderly population that currently struggles with the choices regarding home care and long-term care planning as well as how to fund the services.