The Need for Long-Term Care Separating FICTION from FACT

Few people are prepared to handle the financial burden of long-term health care.  
In fact, many people have a false sense of security when it comes to long-term care.

FICTION	FACT
“Medicare and my Medicare supplement policy will cover it.”	In fact, Medicare and “Medigap” insurance were never intended to pay for ongoing, long-term care: Only about 12% of nursing home costs are paid by Medicare, for short-term skilled nursing home care following hospitalization.  (Source: AHIP, A Guide to Long-Term Care Insurance, 2004) Medicare supplement insurance helps cover some of the gaps in Medicare coverage, but not long-term care.  (Source:  AHIP, A Guide to Long-Term Care Insurance, 2004)
“It won’t happen to me.”	At age 65, people face at least a 40% risk of entering a nursing home at some point in their lifetime and about 10% will have a stay of five years or longer.  (Source: AHIP, A Guide to Long-Term Care Insurance, 2004) Women have a longer life expectancy than men…about 72% of nursing home residents are women. (Source:  AARP Public Policy Institute, "Women and Long-Term Care," July 2002)
“I can afford it.”	As a national average, a year in a nursing home is currently estimated to cost $79,935.  In some areas, it can easily cost $100,000 or more!  (Source:  2009 MetLife Market Survey of Nursing Home, Assisted Living, Adult Day Services, and Home Care Costs) The average length of a nursing home stay is about 2.4 years.  (Source:  CDC/NCHS Health Care in America, Trends in Utilization; U.S. Department of Health and Human Services, January 2004) The average cost of an assisted living facility in the U.S. was $37,572 per year in 2009. (Source: 2009 MetLife Market Survey of Nursing Home, Assisted Living, Adult Day Services, and Home Care Costs) Home health care is less expensive, but it still adds up.  Bringing an aide into your home just three times a week easily can cost $1,000 each month, or $12,000 a year. (Source: AHIP, A Guide to Long-Term Care Insurance, 2004)
“If I can’t afford it, I’ll go on Medicaid.”	Medicaid, or welfare assistance, has many “strings” attached and is only available to people who meet federal poverty guidelines.

Whether purchased for yourself, your spouse or for an aging parent, long-term care insurance can help protect assets accumulated over a lifetime from the ravages of long-term care costs.

Disclaimer: The information, general principles and conclusions presented are subject to local, state and federal laws and regulations, court cases and any revisions of same. While every care has been taken in the preparation, we are not engaged in providing legal and accounting services. This information should not be used as a substitute for the professional advice of an attorney, accountant, or other qualified professional. Tweet