Facts about Long-Term Care
The good news:
The Baby Boomer generation is officially 78 million strong!
Americans are living longer lives than ever before.
The impact:
Medical advances prompt challenges to more families needing long-term care services.
According to a 2007 survey from the U.S. Department of Health and Human Services, 9 million Americans now age 65 or older will require long term care at some point in their lives. This number is expected to rise by 25% - to 12 million people by year 2020.
The paradigm shift:
Long term care is NO LONGER just about nursing homes!
It’s about FLEXIBILITY and CHOICES!
Did you know?
• 80% of long term care policy benefits are paid for home health care services
• 10% of long term care policy benefits are paid for assisted living care
• Only the remaining 10% of long term care policy benefits are used to pay nursing home expenses
Today, you can choose from a variety of long-term care services to best suit your needs – ranging from homemaker services, adult day care, home health aides (both Medicare certified or non-Medicare certified), assisted living facilities, and nursing home facilities.
Costs:
You have probably heard the urban myth that long term care insurance is expensive. But the fact is that long term care SERVICE is expensive. Purchasing a long-term care policy epitomizes the principle of “spending pennies to save dollars.”
Recent data from a 2008 survey compiled national average costs for the following types of care:
• Annual cost of daily Adult Day Care services - $21,535
• Annual cost of private room in an Assisted Living Facility - $36,096
• Annual cost of non-Medicare certified Homemaker services - $41,184 (based on 44 hrs/wk)
• Annual cost of non-Medicare certified Home Health Aide - $43,472 (based on 44 hrs/wk)
• Annual cost of Medicare-certified Home Health Aide - $86,944 (based on 44 hrs/wk)
• Annual cost of private room in a Nursing Home - $76,285
Medicare & Medicaid:
Should you rely on Medicare to cover your long term care?
Medicare is a form of government health insurance that pays for:
• Skilled Care
• Rehabilitative Services
• Skilled Home Care
Does Medicare pay for Custodial Care?
• Home Care - NO
• Adult Day Care - NO
• Assisted Living Care - NO
• Nursing Home Care - Only a portion up to 100 days of care; only for skilled or rehabilitative services; After 100 days, Medicare pays NOTHING
What about Medicaid?
Medicaid is another government health insurance program based on financial need. (Generally, you must spend down your assets to approximately $2,000 in order to qualify for Medicaid).
Will Medicaid pay for Custodial Care?
• Home Care: Yes – with limitations varying among states
• Adult Day Care: NO
• Assisted Living Care: NO
• Skilled Nursing Home: Yes – but you don’t get to choose the facility nor its location / proximity to your home or family
Be sure to request our Preliminary Insurance Questionnaire if you are interested in investigating whether Long-Term Care risk management fits into your financial plan. |
