The Facts Behind Long Term Health Care

If you don't have a friend or family member who has received LTC, then the costs of health care long term may come as a shock. Long term medical care in a nursing home can run upwards of $50,000 per year, depending on where you live. Assisted living facilities are about half of that, averaging around $24,000 a year. These are nationwide averages; your costs may be higher or lower depending on whether you live in California, Florida, New Jersey or anywhere in between.

Coverage

If you assume that your health insurance will cover these costs, chances are you're wrong. Most policies will stop coverage once you've been released from the hospital into a long term care facility, though your insurer may offer a more comprehensive plan.

Medicare

Like health insurance, Medicare is very limited in its long term health care benefits. The eligibility requirements are strict; the need for care must be certified by a physician and must be related to a hospital stay of three days. If you require daily care, then you can enter a government-approved nursing facility. Any medicare prescription drug coverage will apply to drugs you receive in the facility, and there are other benefits, but they are limited.

Medicaid

Medicaid is less rigid about coverage guidelines; however, qualifying for Medicaid is more difficult. You must show that you have very few assets and low income. Once you qualify, you can receive care in an approved nursing home. In some states, Medicaid will also pay for assisted living.

Long Term Health Care Insurance

One option that offers more flexibility is long term health care insurance. You will be able to choose between companies like John Hancock, The Hartford and MetLife. You can also decide how much daily coverage you want, and your benefit triggers, for your long term care insurance. While this can make things much easier in the event you need long term care, you must keep paying yearly premiums in order to keep your insurance.

Long Term Health Care for Veterans

If you are a veteran, then you can receive long term health care free of charge from a VA facility. This is an affordable way to get the care you need. On the downside, this service is only available to U.S. veterans, and there may be a waiting list to enter the facility.

Cash & Personal Savingds

The final option for paying for long term health care is to save on your own. By putting aside money specifically for LTC, you won't have to worry about paperwork or eligibility requirements. Saving enough money to completely cover the costs of care is a difficult task, even for relatively high income families.

Conclusion

Choosing how to pay for long term health care may seem complicated, but it's important to have a plan. Having to pay for care without spending your savings is extremely difficult. It's best to sit down with your spouse or family and have a frank discussion about the costs of long term health care and the best way to pay for it. That way, you can avoid the pain and financial distress that come from being taken by surprise.