What is Long
Term Care?
Long term care provides assistance to people who need help over
an extended period of time with the activities of daily living;
bathing, dressing, eating, toileting, continence or transferring. It
also provides care for people with cognitive impairment, such as
Alzheimer's disease.
Who Needs Long Term Care?
Current statistics show that one out of two women and one out of
three men will need nursing home care at some time in their lives.
This need for long term care can occur at any age. Though nearly
half of the people needing long term care today are over age 65,
disabled people between the ages of 18 and 64 make up 40 percent of
Americans needing long term care. |
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Why is Long Term Care
Insurance Important?
Most people carry home and auto insurance, yet fail to plan for the
much higher risk of needing long term care. Luckily, that's changing
as people recognize today's realities. Once they see that
the annual premium for most ages is less than
the expense of a one - or two - month stay in a nursing home,
more and more individuals are purchasing long term care insurance to
help protect their assets and independence.
Who Pays for it?Most people
believe Medicare will pay for long term care. But the fact is,
Medicare pays only for short term (about three months) skilled
nursing care following hospitalization. More than 99 percent of
nursing home care is either custodial or immediate care that is not
covered by Medicare or Medicare Supplement Insurance. And, despite
what most believe, few employer health insurance plans provide
coverage for long term care services.
While Medicaid is the major source of financing for long term care
expenses, this support comes at a cost - lack of control and
choices. Generally, state Medicaid programs require you to spend
down your assets to pay the costs until you meet poverty level
guidelines and qualify for assistance. Even though a portion of a
couple's assets is protected if one spouse stays at home, if that
spouse dies the state can recover the costs paid by Medicaid from
the estate.
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