Frequently Asked Questions:
Long Term Care
What is long term care?
Long term care provides for a wide variety of services for people with prolonged physical illness, disability or cognitive disorders (such as Alzheimer's Disease). It is aimed at helping people with chronic conditions compensate for limitations in their ability to function independently. Services may include, but are not limited to, help with daily activities at home (such as bathing and dressing), respite care, home health care, adult day care, and care in a nursing home.
Doesn't Medicare pay for this?
No! Medicare and Medicare Supplement Insurance are program services which are designed to rehabilitate or correct certain medical problems. Long term care, which is usually paid for by individuals, assists a person in maintaining his or her level of functioning.
Is long term care expensive?
Yes! In 2002 the average cost of nursing home care is about $4,000 per month ($48,000 - $50,000 per year). In-home care provided by a nurse three times per week, two hours per visit, would come to about $14,000 per year.
Will I really ever need long term care?
This is difficult to predict, but several studies have been done, including one that found that 43% of the people who turned 65 in 1990 will enter a nursing home in their lifetime. Another study found that 1 in 4 will spend one year or more in a nursing home, and approximately 1 in 11 will spend five years or more in a nursing home. The need for nursing home care is more than three times greater for women than men, and for everyone your chances for needing a nursing home increase as you age. And remember: your chances of needing home health care are greater than the odds you will need a nursing home.
Can I obtain insurance to cover long term care expenses?
Yes. Coverage can vary widely, so be sure to get well educated and informed so that your insurance covers all contingencies that are important to you. Be sure that answers to the following questions are well documented before you make any commitments for long term care insurance:
- When will coverage begin?
- How much coverage (per month) will I have?
- How long will coverage last?
- In what kind of facility will I receive care?
- What are the criteria for receiving benefits?
When is the best time to buy?
There are two parts to this answer: 1) the sooner the better, but 2) be sure you are comfortable that premiums will not put a strain on your normal day-to-day living expenses. This is a real "Catch 22." Premiums for the exact same coverage can be three times higher for someone at 65 years of age, compared to 55 years of age. However, the 65-year-old has a much better handle on his or her current and future financial means than the 55-year-old. There is one more irony: a person usually starts thinking about the need for long term care when the cost for that care is spiraling upward.
What else should I know?
Long term care and its expense coverage are a planning process. It is wise to seek advice and guidance from a knowledgeable professional that you trust to give you honest and accurate information. Your greatest disappointment would be to think you are well covered, only to find -- at the moment of need -- you are not.
See also my Frequently Asked Questions about Medicare and Medicare Supplement Insurance
j.elvin@seva2shore.com
j.elvin@s2sss.com
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