PLANNING TODAY

Understanding Long Term Care

Americans are now living much longer than ever before. The 85-and-over age group is the fastest growing segment of the population. However, in this age group we see high rates of chronic diseases, such as Alzheimer's disease, stroke, diabetes and other conditions, which often require long term care. Once we reach age 65, we have about a 40% chance of needing long term care at some point.

  1. Long Term Care Long term care refers to a range of services for people with chronic health problems. Long term care does not try to cure or treat the disease. Instead, it is designed to help you live as comfortably and as safely as possible, providing you with assistance in your activities of daily living, such as bathing, dressing, eating, toileting and moving around safely.
  2. Types of Long Term Care There are different levels of long term care. These include skilled nursing homes, assisted living facilities, home health care, homemaker services and adult day care. Skilled nursing care is generally required if you need 24-hour medical supervision by registered nurses. Assisted living provides 24-hour non-medical custodial care. Home health care is provided by nurses or aides who visit you in your home. Adult day care provides daytime supervision, if you develop a cognitive impairment, like Alzheimer's disease.
  3. Cost of Long Term Care Long term care can be a huge expense. The average cost for a nursing home bed in Florida is about $4,200 per month, or $50,000/year. Since long term care is sometimes needed for several years, your total cost can be quite high. According to one study, the average American in a nursing home exhausts his or her savings in less than two years.
  4. Who Pays for Long Term Care? Most people start out paying for their own long term care. You may be surprised to learn that neither Medicare nor your own health insurance will cover much of it. If you exhaust your savings, you may qualify for Medicaid, which will then pay the costs. The other way to pay for long term care is with long term care insurance, which you must purchase before you get sick.
  5. Your Savings Unless you have insurance, you will have to pay for your long term care expenses. You will need to set aside sufficient savings to cover the costs for yourself and for your spouse, if you are married. It is not uncommon for both spouses to require long term care. It is also important to plan so that the "healthy spouse" will have sufficient financial resources to live on, after one of you enters long term care.
  6. Medicare Medicare generally covers only a brief stay in a nursing home after a hospitalization. Medicare also covers some home health care if you are recovering at home from an illness or surgery. Medicare coverage is very limited, and you should not expect Medicare to pay for your long term care needs.
  7. Medicaid Medicaid is a welfare program that will pay for your long term care, if you become indigent. This means that you can receive benefits only after you have spent your own savings. The Medicaid rules are complex, and they vary from state to state. It is important to obtain professional guidance from an elderlaw attorney before you apply for Medicaid. Medicaid usually covers only skilled nursing home care.
  8. Long Term Care Insurance The rapid growth in the need for long term care has produced a very active market for long term care insurance. This insurance, which can be quite complex, is designed to pay for your long term care costs. You can get long term care insurance only while you are still healthy. Long term care insurance policies offer many features, benefits and limitations, so make sure you carefully compare several options before making a decision.

Long term care is an important issue that requires your attention before you need it. One of the best steps you can take is to meet with an elderlaw attorney and review your own situation. Proper planning can save you and your loved ones a lot of trouble.

We hope you have found this issue of Planning Today useful and interesting. If you have any questions, please contact your professional advisor, or give us a call. Thank you for your continued support.

Steve Brownstein, Director of Development
Menorah Manor Foundation
255 59th Street North
St. Petersburg, FL 33710
Telephone: 727-302-3705
Fax: 727-345-3957
Email: foundation@menorahmanor.org

 

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