Few individuals are adequately prepared to handle the financial implications of long-term health care. Many mistakenly believe that Medicare and their Medicare supplement policy will cover it. However, the reality is quite different:
FACTS:
- Medicare and "Medigap" insurance were not designed to cover ongoing, long-term care expenses. Medicare only covers about 12% of nursing home costs, specifically for short-term skilled nursing care after a hospital stay.
- Most health insurance plans, including Medicare supplement policies, do not cover long-term custodial care.
The misconception that "It won’t happen to me" is widespread, but statistics paint a different picture:
FACTS:
- Nearly 70% of individuals reaching age 65 will require long-term care services at some point in their lives.
- The majority of nursing home and assisted living residents are women.
Some may believe they can afford long-term care costs, but the reality is sobering:
FACTS:
- The average annual cost of a nursing home stay is around $92,000, with some areas exceeding $110,000.
- The average length of a nursing home stay is 835 days, and the cost of assisted living facilities averages $43,539 per year.
- Home health care may seem more affordable, but the expenses can add up quickly.
The misconception that Medicaid will cover long-term care costs is unfounded:
FACTS:
- Medicaid assistance is subject to strict eligibility criteria based on federal poverty guidelines.
Long-term care insurance can provide a crucial safeguard for individuals and their families, protecting assets accumulated over a lifetime from the potentially devastating financial impact of long-term care expenses.
