Long term care is the type of assistance given to people who need help with activities such as bathing, continence, dressing, transferring, toileting or eating – or who need substantial supervision due to a cognitive impairment.
The costs associated with Long Term Care can deplete individual assets relatively quickly with the national average of one year in a nursing home or 24-hour home care costing more than $72,000 in current dollars (2008). In addition 24-hour home care can cost as much as or more than a nursing home and 60% of people needing long term care are age 65 and older.
Who Pays for LTC?
- Medicare: pays for hospital, physician, surgical, rehabilitation, and outpatient expenses. For those who qualify, long-term care coverage is typically offered with restrictions and on a short-term basis.
- Medicaid (Medi-Cal in California): pays for long term care at the custodial level, meaning when care is received in a skilled nursing facility. Eligibility requirements vary by state.
- Personal Assets: One long term care illness could jeopardize your personal retirement planning.
- LTC insurance: pays for skilled, intermediate, and custodial care at home, or in an adult day care center, assisted living facility or nursing facility, and for other long term care related expenses.
At Diccianni Financial Group we can help you determine if long term care insurance is right for you and what type of policy will serve you best. Contact us today for a complimentary consultation.
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