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Long Term Care Insurance. Can your financial planning be resolved without planning for this significant exposure?. The Basics.
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Long Term Care Insurance Can your financial planning be resolved without planning for this significant exposure?
The Basics The need for Long Term Care affects the entire family. It is a critical social issue as only 7% of our population has this coverage and 70% of our population is going to need some form of care at some point in their lives. The need for long term care may happen to anyone…your spouse, a parent, a sibling. It can result from being chronically ill, from a severe cognitive impairment or something as unexpected as an accident or injury. Many important questions arise: • Who will take care of me? • Will I be able to stay at home? • What pot of money do I take from to pay for care?
Cost of Care • Some average costs for long-term care in the United States (in 2013) were: • $205 per day or $6,235 per month for a semi-private room in a nursing home • $229 per day or $6,965 per month for a private room in a nursing home • $3,293 per month for care in an assisted living facility (for a one-bedroom unit) • $21 per hour for a home health aide • $19 per hour for homemaker services • $67 per day for services in an adult day health care center **Consumer Reports
How much care will you need • The duration and level of long-term care will vary from person to person and often change over time. Here are some statistics (all are “on average”) you should consider: • Someone turning age 65 today has almost a 70% chance of needing some type of long-term care services and supports in their remaining years • Women need care longer (3.7 years) than men (2.2 years) • One-third of today’s 65 year-olds may never need long-term care support, but 20 percent will need it for longer than 5 years • Those with congnitive issues typically have much longer periods of care.
Types of long-term care services Type of Care • Nursing Home • Assisted Living • Home Health Care • Adult Day Care
Who Pays for Long Term Care - Medicare • Only pays for long-term care if you require skilled services or rehabilitative care: • In a nursing home for a maximum of 100 days, however, the average Medicare covered stay is much shorter (22 days). • At home if you are also receiving skilled home health or other skilled in-home services. Generally, long-term care services are provided for up to 21 dyas. • Does not pay for non-skilled assistance with Activities of Daily Living (ADL), which make up the majority of long-term care services • You will have to pay for long-term care services that are not covered by a public or private insurance program
Who Pays for Long Term Care - Medicaid • Does pay for the largest share of long-term care services, but to qualify, your income & assets must be below a certain level and you must meet minimum state eligibility requirements • Such requirements are based on the amount of assistance you need with ADL • Other federal programs such as the Older Americans Act and the Department of Veterans Affairs pay for long-term care services, but only for specific populations and in certain circumstances
Who Pays for Long Term Care – Health Insurance • Most employer-sponsored or private health insurance, including health insurance plans, cover only the same kinds of limited services as Medicare • If they do cover long-term care, it is typically only for skilled, short-term, medically necessary care
Thank you for your time… Contact Information Scott Snowden Snowden & Associates, Inc. (502) 339-7980 firstname.lastname@example.org