Free Retirement Classes. What You Need To Know To Retire Successfully

What is Long-Term Care?

Who Needs Care?

How Much Care Will You Need?

Who Will Provide Your Care?

Where Can You Receive Care?

Who Pays for Long-Term Care?

Advanced Directives

Questions about long-term care?

When most people think of longterm care for the elderly, they think of nursing homes. But it can involve much more than that.

Who Pays for Long-Term Care?

The facts may surprise you.

Consumer surveys reveal common misunderstandings about which public programs pay for long-term care services. It is important to clearly understand what is and isn’t covered.

Medicare:

  • Only pays for long-term care if you require skilled services or rehabilitative care:
    • In a nursing home for a maximum of 100 days, however, the average Medicare covered stay is much shorter (22 days).
    • At home if you are also receiving skilled home health or other skilled in-home services. Generally, long-term care services are provided only for a short period of time.
  • Does not pay for non-skilled assistance with Activities of Daily Living (ADL), which make up the majority of long-term care services
  • You will have to pay for long-term care services that are not covered by a public or private insurance program

Medicaid:

  • Does pay for the largest share of long-term care services, but to qualify, your income must be below a certain level and you must meet minimum state eligibility requirements
  • Such requirements are based on the amount of assistance you need with ADL
  • Other federal programs such as the Older Americans Act and the Department of Veterans Affairs pay for long-term care services, but only for specific populations and in certain circumstances
 

GOOD TO KNOW

Like public programs, private sources of payment have their own rules, eligibility requirements, co-payments, and premiums for the services they cover.

 

Health Insurance:

  • Most employer-sponsored or private health insurance, including health insurance plans, cover only the same kinds of limited services as Medicare
  • If they do cover long-term care, it is typically only for skilled, short-term, medically necessary care

There are an increasing number of private payment options including:

  • Long-term care insurance
  • Reverse mortgages
  • Life insurance options
  • Annuities