Attorney says Medicare Very Limited for Long Term Care
Have you thought much about long-term health care and the cost and impact it may have on you and your family in the years ahead? Too many people fail to consider the implications of failing health, mobility problems, aging, and dementia. Your future or current retirement plan can blow up with an unexpected and unplanned expense that could run $4500 to $8000 or more a month now and into the years ahead.
You might equate nursing homes and long-term care, but today most long-term health care is outside of a nursing home. Most care is delivered at home, in adult day care, and in assisted living facilities, not in nursing homes. While this is good news since the national average cost of a nursing home is now well over $100,000, according to the LTC NEWS Cost of Care Calculator. That doesn't mean that in-home care and assisted living expenses are cheap, and the consequences can still be disastrous.
Are You Prepared for the Consequences of Aging?
Your question should be, "When I need long-term health care, how will I pay for it without adversely impacting income, assets, lifestyle, and legacy?"
You might think Medicare will pay for long-term health care, but it doesn't, outside a limited number of days of skilled services. Mesquite, Nevada attorney Bo Bingham says that Medicare is a limited and temporary solution with expensive deductibles and will only pay for up to 100 days of skilled care in a nursing home.
While Medicare supplements will pay some of the deductibles during those 100 days, Medicare is not a solution.
Bingham says that another good option can be Long-Term Care Insurance. However, many people are unaware of its availability or fail to act when they are younger and in good health.
Medicaid is Not a Plan for Most People
If you are thinking of Medicaid, better think again. Medicaid will pay for long-term health care services, but only if you have little or no income and assets.
Some assets are exempt, like your home, as long as it remains your primary residence. Other exempt assets include things like furniture, jewelry, and a vehicle. However, states can come back after you die to recover some of their costs if you have any savings left over.
Bingham says that Medicaid can even look back in time and disqualify a person who made an improper transfer to qualify for Medicaid. Therefore, any gifting should be done with guidance and well before a person faces the prospect of entering a nursing home.
Partnership Long-Term Care Insurance
Most states participate in the Long-Term Care Insurance Partnership program that provides dollar-for-dollar asset protection. If you own a qualified partnership policy, you can shelter part of your estate and still qualify for Medicaid.
We can't stop the aging process, and we will experience declining health, mobility problems, and even dementia. Often this leads to our need for help with our daily living activities or supervision due to memory loss.
Long-term health care costs are climbing due to increased demand for care services and higher labor costs. But remember, while long-term care is a cash flow problem, it is also a family problem. There is physical and emotional stress and anxiety that comes with being a family caregiver and having to juggle jobs, family, and caregiving all at the same time. The consequences on our loved ones can be life-changing.
Most people obtain Long-Term Care Insurance in their 50s. Be sure to seek the advice of a qualified LTC Insurance specialist to help guide you through shopping, policy design, and the application process. Be sure the specialist works with the top companies. They will help you save money and gain peace-of-mind.