Reason #1 – People don’t understand the payment sources of
I am always amazed how many people are under the misconception that Medicare
will pay for all long-term care services.
The truth is that Medicare does not pay for ongoing long-term care (although
it will pay for intermittent stays at nursing facilities). Yet, according
to a Genworth Cost of Care Survey in 2015, 34% surveyed thought Medicare
would pay for long-term care while 27% were unsure.
Furthermore, Medicare doesn’t typically pay for much if any care
in the home. However, 36% of those surveyed thought it would and 27% reported
that they were unsure.
As for private insurance, most health insurance plans will not cover long-term
services like a nursing home or ongoing care provided at home by a licensed
home health care aide. Yet, 18% of Americans age 40 and older believe
that their insurance will cover the costs of ongoing nursing home care.
25% believe their plan will pay for ongoing care at home. About 1 in 5
people surveyed were unsure of the coverage provided for these types of
long-term care services.
The reality is that there are several sources of payment for long-term
care, but Medicaid is the largest payer. In 2013, Medicaid paid for 51%
of the national long-term care bill totaling $310 billion. However, 51%
of Americans age 40 and older reported that they don’t expect to
have to rely on Medicaid to help pay for their ongoing living assistance
expenses as they age.
I hope this information is helpful for you. Although not a popular topic
amongst many, long-term care is an increasingly important one. Massih
Law, LLC is in the business of providing legal options for people in planning
for their potential long-term care needs.
If you, a loved one or a client needs help figuring out their options,
please think of us. We can help and we are always happy to hear from you.
You can reach us at (203) 651-5521.