Medicare does not pay for Long Term Care Insurance: Uncovering the facts

Who will take care of me when I’m old? It’s a question that comes to mind from time to time for everyone. Will my children live nearby? What if I live to be 90, or even a 100 or more? What happens when I can’t get up in the morning, can’t feed myself, can’t do the things that now seem so natural? For most of us, these are tough questions, ones that we don’t relish thinking about or dealing with. Many Americans think they already have the answers to these questions. And, for many of these people, the answers are wrong and could mean financial disaster in their retirement years. Let’s examine some of the common answers to these questions, including one of the most-common, Medicare has me covered.

Medicare does not pay for long-term care. Some might think, well my friend’s mother or father was in the hospital with a broken hip or other injury or illness and needed rehabilitation afterwards and Medicare paid. A common misconception it that this situation is long-term care. A situation like the above relates to a specific medical condition for which a doctor has ordered care. This is not long-term care. Long-term care is when you need care and assistance with the basics of daily living that are non-medical, like bathing, eating and getting around. These are not covered by Medicare and must be paid out-of-pocket if you don’t have Long Term Care Insurance.

So, then many Americans think, Medicaid will pay. This is true and Medicaid pays for about half of all nursing home stays in the U.S., currently. The problem is that you must qualify which means spending down all of your assets, not an ideal scenario for most of us. We’ve worked hard all of our lives to put away for retirement. The high cost of long-term care means that even a modest amount of savings or assets can vanish in a matter of a few years paying for an in-home health aide, which can run between $20-23 per hour, or a nursing home stay, which can cost around $85,000 annually or $246 per day. So, for those without any means or savings, Medicaid is an option. But for the vast majority of us in the middle, Medicaid means creating financial ruin with our nest eggs.

Another commonly held belief is that your children will care for you. In the past, this was commonplace. But, in the modern world, the workforce is more mobile. People move far away from home to find work and build their lives. You simply can’t count on your children to care for you and even if you could, the emotional and financial burden on them can be devastating and can ruin relationships and family dynamics that were fine for an entire lifetime but can turn bad just at the end of your life.

The real answer to the need for long-term care is Long Term Care Insurance. For most, investing in even a modest policy means you can have the peace of mind to know that you’ll get the care you need in your retirement years. The facts are this, you and only you are responsible for your future long-term care needs and you shouldn’t depend on the government or your family to ensure that you get the care you need. Wouldn’t you feel better and more empowered if you took matters into your own hands and purchased a Long Term Care Insurance policy today?

Do you need help in navigating the myriad of choices regarding Long Term Care Insurance plans? If so, LTC Tree can help you find a plan that is right for you. We’ve helped thousands of Americans make sound decisions for their future, long-term care needs. We can help you as well. Simply fill out our request form, and we’ll be glad to talk you through the various plans and options. Thank you for reading today's blog. We really appreciate it.