Long Term Care Needs

Many people plan for retirement, but few think about what will happen to that plan if they or a loved one were to need long term care. Many people plan for retirement, but few think about what the consequences would be to their overall nest egg if they or a loved one should need long term care services.

Assistance with long-term care health needs can range from assistance in performing basic activities of daily living to highly skilled medical care in a controlled environment. Because the risk of needing long term care increases with age, it is important to plan for your care needs now, while you are younger and healthier.

The security offered by creating a plan to address these needs can help preserve your savings and assets, your lifestyle, and your independence should you need long term care.

Individuals and families

A long term care need can hit anyone at any time – whether you need care yourself, or find yourself in the position of caregiver.

The peace of mind provided by addressing this potential need now can ultimately help preserve your savings, assets, your lifestyle and your independence should you need long term care services.

Ultimately, is your spouse or child(ren) going to provide care for you? What is the potential impact this could have on their families and careers if they have to provide the care?

“Average annual nursing home care (private room) is $75,190. The average daily cost for eight hours of home care is $206.” Source: MetLife Mature Market Institute, Market Survey of Nursing Home and Home Care Costs, September 2006.

More than 15 million adults in the United States care for ailing relatives, saving the health care system billions of dollars but “at considerable cost to themselves.” Source: University of Pittsburgh, CNN, February 2007.

Questions About Long Term Care

Why consider addressing the potential need?

Medicare does not cover skilled care for 100 days. Skilled care is classified as more than 3 days, treating the same illness, and is accompanied by a plan of care.

Who may need Long Term Care?

The need for long term care is hard to predict. Those individuals recovering or living with disease or illness may need it for a few months, years or even for the rest of their life. The type of care needed depends mainly on the physical condition of the individual.

How are expenses covered?

Expenses incurred for long-term care assistance are paid in one of several, or a combination of ways.  First, as discussed, Medicare can pay for a very small portion of long-term care expenses.  In most cases, the expenses are paid out of pocket by the individual receiving the care.  Additionally, if one qualifies, Medicaid could be an option.  This usually means that one, as long as they qualify financially, can receive care in a Medicaid-approved facility.  Finally, many people work with their personal advisors to craft a plan that addresses the need now – rather than waiting until the need is evident or imminent.