For individuals with no experience with long-term care, it’s easy to think of it that refers to nursing home residency. It is
a type of care that is needed when someone can no longer take care of themselves. This type can be received in a nursing home care, in someone‘s home, or in an assisted living facility.
The cost of long–term care can vary depending on the type that is needed and where it is received. It can
be expensive. However, there are ways to help pay for it. Some people may be able to bring their loved ones to Nursing Home Care. Others may be able to receive help from Medicaid.
Medicaid is a government program that can help pay for long-term care for people who cannot afford it. Some people may also use their own money to pay for it. It helps with a certain condition that needs to be covered.
However, long-term care has many layers and different types of it. Each type addresses a variety of needs a senior individual (or someone with a long-term ailment) may have.
There are many medical conditions that can require long–term care.
Some of the most common conditions include dementia, stroke, and heart disease. There are many different types of long-term care services that can be provided. Some of the most common services include nursing home care, home health care, and assisted living.
While you may be healthy and self-reliant in the present, you should familiarize yourself with long-term care. There are no age restrictions in learning about LTC. Learn about what long-term care is, how it works, what solutions cover it, and the costs associated with it.
What Does Long-Term Care Involve?
Long–term care (LTC) can involve a variety of different services and levels of care, depending on the needs of the person receiving care. On one end of the spectrum, an elderly person may remain at home and have a home health aide to help them with household tasks. This may include grocery shopping, personal care, medication assistance, transportation, or meals.
In serious situations, sick or elderly individuals might need help with every aspect of their lives due to their health conditions. For example, an individual who has suffered a stroke or other chronic conditions may rely on a healthcare professional for rehabilitation.
These services are typically long-term and may take place in the individual’s home, or at a skilled nursing facility.
When an individual experiences a decline in their health due to age or illness, they may have family nearby to provide care. In other circumstances, individuals have to partially or fully rely on LTC providers to meet their daily needs. LTC is really helpful for anyone in life.
Covering the cost of these services presents a challenge. It’s even more difficult if the individual does not yet receive social security or qualify for a spend-down Medicaid program.
There are three main levels of long–term care: nursing home care, home health care, and assisted living. Each level of care involves different types of services and has different costs.
- Nursing Home (Skilled-nursing care)
Nursing homes provide nursing care for the elderly with 24-hour medical service available.
The cost of a nursing home varied. In 2020, semi-private room cost $93,075.
- Assisted Living
- Residential care homes
- Memory Care
Memory care is a type of care that is specifically designed for people with dementia a. This type of care can be received in a nursing home, in someone‘s home, or in an assisted living facility.
The Cost of Long-Term Care
Long-term care does not come cheap depending on many factors, such as the type of care received, the location, the size of the nursing home, level of care required, types of care, and how long you will stay. In some places, all facilities are inclusive, while others add extra fees for speech therapy, physical therapy, and memory care.
Unfortunately, long-term care does not come cheap, with nursing home residency costing between $30,000 and $60,000 per year. Seniors and their families are usually required to cover at least half of these costs. The expenses make it to where many individuals and their families can’t afford to fund these needs.
While home-health services typically cost far less than nursing home care, they can still cost an individual between $5,000 and $10,000 per year. When the individual in question is a retired or disabled senior, these costs can expand in very little time.
Long-Term Care Insurance
Long–term care insurance covers the cost of long–term care services. This type of insurance can be expensive, but it can help cover the cost of care for people who cannot afford it. This insurance can cover many types of LTC and benefits, including palliative and hospice care.
Individuals able to rely on their health insurance (Medicare and Medigap) to cover the cost of long-term care should know that this
only covers specific conditions.
One of the largest providers of long–term care insurance in the United States is the insurance company Genworth Financial.
For example, Medicare Advantage and Medicare Supplement rarely cover traditional long-term medical care. Medicare Advantage may cover
some in-home care needs, like activities of daily living (ADLs), but usually,
this does not include skilled nursing care.
Long-Term Care Solutions
Many large employers offer their employees long–term care insurance as a benefit program. Though long-term care is expensive, there are ways to access the help you may need, which doesn’t involve burning through your entire life savings.
Some people choose to use their personal funds rather than purchase an LTC insurance policy.
In some situations,
social security income is used to cover some of an individual’s LTC costs. Other times,
spend down programs can provide Medicaid coverage to individuals who typically don’t qualify. Medicaid often covers at least some amount of LTC costs.
Many insurance companies offer long-term care insurance as a standalone product or a hybrid version of LTC insurance. This type combines long-term coverage with an individual’s life insurance policy.
Hybrid Care Insurance
A hybrid care insurance policy is a type of insurance policy that combines long–term care insurance with life insurance or an annuity. This type of policy can help cover the cost of long–term care, as well as the cost of living expenses. With this insurance, the life settlement of the elderly can be covered.
Hybrid care insurance becomes part of the life insurance payout for individuals who never end up needing long-term care. This way, the coverage is there if it’s needed, and if it isn’t, it’s paid out to the insured’s beneficiaries.
The most common type of hybrid insurance is a combination of life insurance and disability insurance.
Depending on the coverage type, LTC insurance will cover most of the costs associated with LTC. This coverage may happen in the insured’s home, an assisted living facility, an adult daycare center, or a skilled nursing facility.
The hybrid policy provides two benefits, which are LTC benefits and life insurance benefits for loved ones.
By using the latter one, your loved ones will receive the death benefit in full when you pass away. To purchase a policy,
an individual can shop around and check the rates of different companies.
It’s crucial that individuals seeking LTC coverage examine policies before agreeing to them. Asking questions will help clarify what’s covered, what isn’t, and whether premiums can increase over the years. It’s best to be fully aware and prepared before agreeing to a policy.
Important Demographic Information
When applying for LTC insurance, companies will want to know a few identifying pieces of information. This may include your age, gender, the amount of coverage you’re seeking, and your marital status. Depending on these key pieces of information and the company you’re exploring, your premium costs may vary.
For example, single people and women pay more for long-term care insurance (because women usually live longer than men). Premium discounts are often available for married couples.
To learn more about LTC needs, costs, and insurance offerings, it’s wise to research several sources before deciding. Even if you’re in perfect health, you should have a plan to prepare for an unpredictable future.
When shopping for policies, be sure to have someone you trust accompany you. They can help you ask questions, organize answers, and make the best decision possible to protect yourself for the
future.
