Who will pay for long-term care?
Believe this or not, long-term care is so expensive that many people risk losing their life savings within a year of having such care. A year in a nursing home can cost from $40,000 to $80,000, depending on the area of the country. Even a temporary stay in a nursing home can use up funds that you have spent years to accumulate.
Insurance experts estimate that about one-third of all long-term care services are paid for by individuals out of their own savings or investments. The funds may come from pension plans, employee stock ownership plans, single premium annuities, the cash value of life insurance or savings.
Many Americans believe that Medicare will pay their long-term care bills, but in fact it pays for a small percentage of all nursing home costs. At present, it may cover skilled care in a nursing home for the first 20 days (and a portion of the cost for the next 80 days) if admission follows a three-day hospital stay. The biggest gaps in Medicare’s long-term coverage are:
(1) There is no coverage for custodial care, either at home or in a nursing home;
(2) There is no coverage in a nursing home without prior hospitalization;
(3) There is no coverage for nursing home care after 100 days; and
(4) There is coverage only in a Medicare-approved facility.
So, who will pay for nursing home and home health care costs?
The answer is either your savings, your insurance or your state run Medicaid program. Listen to Michael Anderson explain how it works below:
So, who pays for long-term care anyway?
If you or a member of your family needs the services of a Nursing Home attorney, please contact Michael Anderson at The Ascent Law. I am committed to helping you protect the wealth you spent a lifetime creating.