An Introduction to Long Term Care
Long Term Care is often needed due to aging, chronic illness, or injury, and most of us will need it 2-3 times for shorter durations or at least sometime before we pass on. But it is not just for the elderly; a good number of younger, working-age adults are currently receiving long term care due to accident, illness, or injury.
Long Term Care can be provided in your home, an assisted living facility, or a nursing home. All of these can be very expensive, with care provided in a private room at a nursing home typically being the most expensive.
Home healthcare can easily run over $54,000 per year according to Genworth Financial’s Cost of Care Survey. Depending on the skill, medical certifications, and training required of the caregivers, the number of hours needed and where you live, home healthcare can cost considerably more.
Assisted living facilities can cost more than $50,000 per year; the more services you need, the higher the cost. Nursing home facilities, with round-the-clock care, are now $110,000 or more a year. Due to the rising medical costs and longer life expectancies, you can expect to see these costs go even higher.
Unfortunately, long term care is not covered by health insurance, disability income insurance, or Medicare.
- Health insurance plans typically cover nursing home expenses only for a short period or may not cover them at all during your recovery from an illness or injury.
- Disability income insurance will replace part of your income if you are not able to work after a specified time, but it does not pay for long term care.
- Medicare, which covers most people over the age of 65, provides limited coverage for skilled care for up to 100 days and immediately following hospitalization for a brief period. After that, you are responsible for the expenses. Often, if you don’t qualify to stay in the hospital or skilled care facility, and the doctor deems you are not well enough to come home on your own, then long term care becomes a necessity.
So who will pay the cost if you need long term care? There are only three sources available: Medicaid, your assets, and Long Term Care insurance.
- Medicaid pays the bills for a large number of people in nursing homes today. However because the program is designed to provide services for those who cannot support themselves (children, disabled, incapacitated, and low-income individuals), you will have to “spend down” your assets and be practically penniless to qualify for benefits.
Note: Before attempting to qualify for Medicaid, it is imperative that you talk to an expert in Elder Law first. An innocent mistake could disqualify you from receiving benefits for several months.
- Your spouse is also limited to the amount of assets he or she can have. Also, you will only be able to receive care from a facility that accepts Medicaid. But if you have minimal assets, it may be the best option for you. However, there are still tools and legal routes you can take to protect what you do have.
- For many individuals, Long Term Care insurance and extended care are the best option, especially if you have assets and income you want to protect that you’ve worked an entire lifetime for. You want to avoid being a financial burden on others, and you want to have some choice in the care you receive. With Long Term Care and Extended Care insurance, you will have the option of receiving care in your home or a private pay facility.
When planning for long term care, the experience, education, and guidance we offer at Cole Insurance and Senior Solutions can be most helpful.
We are committed to providing education and insight to you with a comprehensive Long Term Care 101 presentation. This session covers all aspects of Long Term Care and Extended Care, including Medicaid, asset protection, and legal tools that can be used to protect your well-being.
Contact Cole Insurance and Senior Solutions to schedule an appointment today!