Paying For LongTerm Care Exploring Your Choices
July 23rd, 2010 Filed under: Estate Planning — Estate Planning Author
Because Americans today are living significantly longer than just a few decades ago, a greater number of Americans are requiring long-term care than ever before. In fact, according to recent statistics, seven out of ten seniors will require some type of care; four out of ten will require care for two years or more! And it is estimated that 93% of seniors have made no plan for a long-term illness. So, let’s discuss your options.
Most seniors think that Medicare pays for long-term care. While it does pay for skilled nursing, the limitation is the length of your rehabilitation or 100 days, whichever is less. So Medicare provides a short term, not long-term solution. If someone you love is in a nursing home on Medicare, it is urgent to create a transition plan. Please visit our website for info.
There are three realistic methods to pay for care:
1) pay out of pocket,
2) buy long-term care insurance, or
3) obtain government benefits.
Let’s examine them.
The average nursing home stay lasts 2.4 years, according to MetLife. In California, a semi-private room in a facility is over $7,000, making the total costs about $200,000! Few of the seniors we counsel have saved that kind of money, so paying out of pocket is impossible.
Buying long-term care insurance is an option if the senior is relatively young and healthy still. But premiums often are $200-300 per month – twice that for married couples. On a fixed income, that can be a challenge. And if you’ve had a major health incident, you might not be eligible at all. Most policies will pay for only about two-thirds of the expenses, so you still should expect some out-of-pocket costs.
The third option is to obtain government benefits. There is a lot of confusion and misinformation regarding this option, but it does exist. These benefits exist through the Federal Medicaid program, which we in California know as Medi-Cal. These programs pay for many forms of long-term care for the frail elderly, including in-home care and nursing homes. Most families who apply on their own are told they must spend down to $2,000 and that their home will be jeopardized by an after death estate claim. The good news is that Medi-Cal asset protection exists for savings and home both. If you have assets, you will probably require professional help. However, benefits do exist to pay for long-term care. You can also find resources for nursing home help. We strongly encourage you to investigate this option.
Mr. Grant is a contributor for http://www.help4medi-cal.com, a resource for families in California who find themselves in need of long-term care. They specialize n Medi-Cal asset protection, nursing home help, and Medi-Cal eligibility.
