For many Americans, long-term care is now urgently becoming a new problem to plan for. The term includes a host of services that vary widely. They range from home care and adult day care to residential care in assisted living or nursing home facilities. This blog discusses what long term care entails, how vital it can be for someone’s life, and how long-term care insurance helps.
Understanding Long Term Care
Long-Term Care Insurance helps those who cannot perform the routine activities that people perform every day. Most people associate this care with the elderly, but it applies to the ongoing care of individuals of all ages who can no longer perform routine activities of daily living (ADL). These six routine activities, comprise of eating, bathing, dressing, toileting, walking and continence. It is generally defined as hands-on assistance provided for an extended period of time for individuals who can’t take care of themselves due to prolonged disability, illness, or cognitive impairment such as dementia.
Types of Care
Discussed below are the two most common types of care offered, depending on the severity of the individual needing the assistance and what Medicare will cover.
Skilled Care
- Administered when medical attention is needed and provided by a licensed medical professional.
- Patients will receive this care often when the condition is short term and that they are expected to recover.
- Examples include intravenous injections, physical therapy, wound care, and catheter care.
- Medicare may cover short-term skilled care needs.
Custodial Care
- Can be performed by someone without professional medical skills at home or in a facility.
- Provides assistance with (ADLs).
- Patients receiving this care often have a chronic condition where their recovery is not expected.
- Examples include help with activities like bathing and dressing. Also, can include help with household duties such as cooking and laundry.
- Medicare will not cover these expenses.
Cost of Care
If you need long-term care services and have to pay out of pocket to obtain them, do you know what financial resources you can use? You should also ask yourself if you have enough to pay for 2 or more years in a nursing home, assisted living facility, or home health care.
Unfortunately, long-term care doesn’t come cheap. According to Genworth Financial, a private room in a Massachusetts nursing home is averaged at $135,000 in 2016 and a home health aide averaged $55,000 in Massachusetts as well. This is where long-term care insurance plays an important role. If you’re over 65, do not rely on Medicare or private health insurance. Medicare does not cover custodial care and private health insurance rarely pays any of the costs of long term care.
Depending on your finances, it might be better to see if you qualify for Medicaid or pay out of pocket and treat the expenses as you do your other bills. For the people who fall in-between these two categories, owning this type of care, like other coverage policies, offer peace-of-mind benefits as well as financial ones. Make sure you buy a policy that covers the types of facilities, programs and services you’ll want and that are available in your area. Contact one of our expert agents today so we can help you and your loved ones on the right track to a happier and healthier future!
