Myths and Truths About Long Term Care


long term careI just read some staggering Long Term Care statistics in Forbes;

71 percent of Medicare recipients mistakenly believe Medicare is a primary source for covering long-term care.

87 percent of people under the age of 65 mistakenly believe their private health insurance will cover the cost of long-term care.â

The article focused on long-term care insurance, and contains a wealth of information about the long-term care landscape.   Perhaps it’s to be expected that most American’s under the age of 65 wouldn’t know all the ins and outs of long-term care, but it was surprising just how misinformed the general public is in regards to Long Term Care, especially considering Americans are now living longer than ever and the cost of care is rising.

So you ask yourself, if Medicare nor private insurance is not the primary source for covering the costs of long term care, then who is responsible covering the costs?   Good question.   Generally, there are three ways to pay for long-term care, each with their own very different ramifications.

Public Funding

This includes Medicare and Medicaid. Medicare can help pay for some expenses, but there are rigid constraints that need to be met. For anyone with a long-term condition requiring constant care, Medicare will generally not cover those services.

Medicaid is for the indigent; you have to be below a certain income threshold to qualify. If you have financial assets you’ll need to spend them down or place them in a family member’s name in order to qualify. One needs to carefully consider whether these options are viable.

Self-Funding

A small percentage of people might be able to pay for care out-of-pocket or with the help of family and friends. Again, one needs to consider the long-term effects of needing to spend significant amounts of money on care. A hard-earned nest egg can quickly disappear with large medical expenses, not to mention the enormous emotional toll that comes from relying on family and loved ones for help.

Long-Term Care Insurance

Finding a long-term care insurance policy that allows you to find care in the type of facility and state of your choice, and also does not exclude certain common conditions including stroke and Alzheimer’s disease, is often the only way to ensure you have control of financial, emotional, and physical well-being when you need it most. The younger you solidify your long term care plans, the less expensive the policy will be, as the state of your health affects policy cost. It’s important to give some thought to your future before it becomes a necessity.

photo by  14646075@N03

Written by Jon the Saver

This post was written by yours truly, Jon Elder. My mission is to help you succeed in your personal finance life. Join me on the journey to financial freedom! You can subscribe through RSS FEED or EMAIL updates. You can also find me on TWITTER
and FACEBOOK
. Happy investing 🙂

Jon the Saver

This post was written by yours truly, Jon Elder. My mission is to help you succeed in your personal finance life. Join me on the journey to financial freedom! You can subscribe through RSS FEED or EMAIL updates. You can also find me on TWITTER and FACEBOOK . Happy investing 🙂

More Posts - Website

Related posts:

Google+ Comments

banner
%d bloggers like this:
Read previous post:
invest in your home
Invest in your Home the Smart Way

There are essentially two types of purchases that you can make: purchases that will increase in value over time, and...

Close