Paying for Long-Term Care

Medicare provides limited coverage for skilled nursing care or home health services following a hospital stay, but it does not cover most long-term care expenses such as assisted living or ongoing custodial care. 

Medicaid, on the other hand, may cover long-term care services for eligible individuals with low income and limited assets, including nursing home care and some in-home care services, although coverage varies by state. Patients must meet strict financial and functional eligibility criteria to qualify for Medicaid's long-term care benefits.

Government programs like Medicaid vary from state to state and the laws can change over time. It can be dizzying to try to understand all the numbers and the paperwork, so it’s recommended that seniors and their families work with financial planners and Medicaid experts to make sure they get every dollar of assistance they qualify for. 

Speaking to a financial planner and/or a medicaid/medicare expert is a great idea to understand what you are qualified for. For further guidance on medicare/medicaid, please contact us at Family Shepherd.

Long-term care insurance provides financial coverage for a range of services needed for assistance with daily living, either in-home or somewhere like a nursing home or assisted living community. Those with a LTC policy pay premiums to the insurance company, and in return, the insurance company pays a predetermined daily or monthly benefit amount when care is required. 

The policy typically has a waiting period before benefits kick in, known as the elimination period. There also might be a maximum benefit period or a cap on total benefits paid out over the policy's lifetime. Long-term care insurance aims to alleviate the burden associated with long-term care expenses, allowing seniors to receive the best care possible while preserving their assets and financial security.

Private health insurance typically covers short-term medical care needs, such as hospital stays, surgeries, and doctor visits, but it does not cover the long-term care services one receives in assisted living or a nursing home unless an additional Long Term Care Insurance policy is taken out. 

Reverse mortgages can be used to pay for long-term care by allowing homeowners aged 62 or older to convert a portion of their home equity into cash. This cash can then be used to cover long-term care expenses, such as home modifications, in-home care services, or assisted living facility costs. There may also be local investors who specialize in working with seniors that are willing to buy your home and then rent it back to you or assist you with some other form of creative financing.