Long Term Care Consultants 

 

Who pays for long-term care services?

 

Long Term Care Services

  To help you understand why long-term care insurance is such an important product, we will clarify what is and what is not covered by other insurance or government programs, as well as how much long-term care services cost.

  What Medicare and Other Medical Plans Cover:
 
 It may come as a surprise to you that most medical plans — including Medicare — cover
  very little of the costs associated with long-term care services.

  Here are some facts:

  Medicare: A government program for people 65 and older and those who are disabled.
  It generally covers some care in a nursing home and at home, but it does so only for a
  limited time and is subject to restrictions.

  Medicare Supplement Insurance: Medicare Supplement covers the same services
   as Medicare. So, if Medicare doesn't cover it, Medicare Supplement won't either.

  Major Medical, HMO or Private Health Insurance: Some Medical, HMO or other
  private health insurance plans will cover a month or two of skilled nursing care (usually
  following a hospital stay), but generally no more than that. Consult your policy.

  Federal/State Government "Medicaid" program: Generally, you can only count
  on help from this program if you meet Medicaid's financial eligibility criteria, which may
  require you to spend down your assets. Medicaid is a "means-tested" program, not an
  entitlement, so don't depend on Medicaid.


 So who pays for it?

  For the most part, the person who needs the care shoulders the cost. Unless you have
  Long-Term Care Insurance, you could find yourself paying for virtually all the costs associated
  with receiving long-term care services. And that can be substantial:

  Nursing home costs average $91,250 per year in the U.S. Considering that the
  average length of stay is 2.4 years, your total cost can be as high as $219,000.
  Assisted living community on average can cost $51,000 annually.
  Home care costs average $27,300 annually - and that's just for part-time
  services. (At our local rate of about $21 per hour, that provides almost 25 hours a week
  of in-home care.)