Long-term care becomes necessary when individuals are unable to carry out everyday tasks independently, such as eating, dressing, or bathing, and this assistance is expected to be required for an extended duration, possibly for the remainder of their lives. This level of care is often associated with aging, chronic health conditions, or injury, and it’s a reality that many of us may encounter at some point in our lives, not just in old age but also due to unforeseen accidents or illnesses during our working years.
Options for long-term care include receiving assistance in one’s own home, residing in an assisted living facility, or moving into a nursing home. However, these services come at a significant cost, with nursing home care being the most expensive, particularly if opting for private accommodations. Home healthcare expenses, according to Genworth Financial’s Cost of Care Survey, can exceed $54,000 annually, while assisted living facilities may require over $50,000 per year, and nursing homes, offering round-the-clock care, can demand $90,000 or more annually. These figures are likely to increase over time due to escalating medical expenses and longer life expectancies.
Unfortunately, traditional forms of insurance, such as health insurance, disability income insurance, and Medicare, do not adequately cover long-term care expenses. While health insurance may cover short-term nursing home stays during recovery from an illness or injury, and disability income insurance provides income replacement after a waiting period, neither specifically addresses long-term care needs. Medicare offers limited coverage for skilled care for up to one hundred days following hospitalization, after which individuals are responsible for their own expenses.
In the event of requiring long-term care, individuals typically have three financial options: utilizing personal assets, relying on Medicaid, or investing in long-term care insurance. Medicaid is a common source of funding for nursing home care but requires individuals to exhaust their assets until they reach a state of financial need. Long-term care insurance, on the other hand, provides a proactive approach to financial planning, offering coverage for home-based or facility-based care with premiums that are more affordable when purchased at a younger age and in good health.
Navigating the complexities of long-term care planning often necessitates professional guidance. Consulting with experts, particularly in elder law for those considering Medicaid, is crucial to ensure eligibility and avoid potential pitfalls that could delay or disqualify benefits. Ultimately, proactive planning can offer peace of mind, financial security, and the ability to maintain autonomy and choice in care options.
For more information, please contact Craig Borne Law at 410-929-1591 or send us an email at [email protected]