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Long Term Care Insurance
What is Long Term Care?
Long Term Care provides for the day-in, day-out assistance
you need when a serious illness or disability renders you
unable, physically or cognitively, to care for yourself for a
lengthy period of time. Long term care can be provided at home
or at a nursing facility, assisted living or alternate care
facilities. |
| Is Long Term Care right for you?
Take a second to consider the following statistics from the
U.S. Department of Health and Human Services:
60% of people over age 65 will require long term
care during their lifetime.
(Washington Post, April, 1996)
Medicare and Medicaid will pay only a fraction of the costs
of long term care.
(Department of Health and Human Services, 1991)
The average cost of nursing home care is about $100
per day. The average stay is 2½ years, which
translates to a total cost of about $100,000 per
stay.
(Department of Health and Human Services, 1991)
The average individual can spend up to $50,000 for long
term care expenses.
(Department of Health and Human Services, 1991)
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What about Medicare and Medicaid?
It is a common misconception that Medicare and Medicaid will cover the
costs of long term care. The reality is that the percentages each source
contributes to the costs of long term care today is:
Medicare: 8%
Medicaid: 45%
This leaves you responsible to pay for the other half of the expenses,
- $50,000 on average, based on the Department of Health and Human Services
statistics above.
Generally, you can't qualify for Medicaid unless your "countable
assets" (your home doesn't count) are valued at less than $2,000. A
spouse still living at home may keep all of a couple's combined assets up
to $81,960 in 1999. Before Medicaid will begin to cover nursing home
bills, though, the couple's assets must be reduced to $83,960 ($81,960 +
$2,000).
Do you need home and community-based care insurance?
The cost of home care may be greater than the cost of nursing home care
if you require around-the-clock services. The question you need to answer:
Do you have a support system such as your family to help you? Home
health care insurance pays for intermittent services, usually provided at
8 hour intervals, if the primary care-giver, usually a spouse or child,
can provide care for the other 16 hours.
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