... a continuation of Long Term Care Insurance Statistics.

Key Facts and Statistics about Long Term Care Insurance  

Types of Care

• Most long term care received in a nursing home care is custodial.

• Skilled care is a type of nursing care typically required by patients with uncontrolled, unstable or chronic conditions, or for patients recovering from a medical condition that requires hospitalization or from surgery.
• Custodial care primarily involves assisting individuals with the activities of daily living (ADLs) which are eating, bathing, dressing, toileting, transferring, and maintaining continence.

• In 2006, the national average daily rate for a private room in a nursing home providing custodial care was $206;
  
• The study also found the average daily rate for a semi-private room in a nursing home providing custodial care in 2006 was $183; 
• Assisted living facilities are mainly for people who do not require the more intensive care provided by nursing homes but at the same time still require assistance in day-to-day living such as the ADLs;

Assisted Living

• Assisted living facilities provide residents with the management and monitoring of care and medication, assistance with ADLs, laundry and housekeeping services, security, transportation and recreational activities.  The have a more apartment community feel to them where you get your own apartment and can put your own furniture in it but if you need help assistance is available;
  
• In 2006, the national average for a private pay monthly rate for a care in an assisted living facility was $2,968;

Home Health Care & Community Care

• In 2006 the average hourly rate for a home health aide providing long term care services was $19 per hour.
• The average hourly rate for a homemaker or companion in 2006 was $17 per hour.  These people typically help cook, clean, laundry, shopping, taking out the trash, make sure you take your medications, etc.
• The national average cost for adult day care facility services in 2006 was $56 per day.

Americans' Health

• Half of Americans between the ages of 55 and 64 have high blood pressure.

• Two out of five Americans between the ages of 55 and 64 are obese - this stat alone can be a huge predictor of needing long term care in the future.
  
  
• The population age segment most likely to need long term care services are individuals age 85 and older; that segment is expected to grow by 307% in the next 45 years.  During the same period the general population is expected to grow by only 42% - people are simply living longer.

Government Programs

• Medicaid (the government welfare program) pays about 43% of overall long term care costs.  To qualify, most people spend their entire Nest Egg first having spent their entire lifetime of savings.
  
  
• A care recipient becomes eligible for Medicaid long term care benefits only when he or she becomes impoverished again after spending down their entire Nest Egg.
  
  
• Virtually all hospice care is paid for by Medicare.  Like most government services the care is NOT going to be the quality that you will find in private pay hospice situations.  Long Term Care Insurance can pay for hospice care.
  
  
• The principal payment source for home health care services is Medicare, but because of tight regulations Medicare will only pay for Home Health Care if it is skilled care which is only about 5% of all home heath care. 
  
  
• Custodial care is not covered by Medicare and custodial care makes up 90% of all home health care.  A long term care insurance policy will pay for custodial care in your own home.
  
  
• Medicaid pays for 46% of custodial care services provided in a nursing home, again because people did not plan for long term care and ran out of money...thus ended up on Medicaid (Welfare)