What is Long Term Care?
How much do you know about long term care? Many people today don't have all the information they need about this important subject and how it can affect their financial future. Here are some facts that can help you understand the risks associated with long term care, and our solutions for helping you maintain your personal and financial independence should you need long term care.
Long term care is the assistance individuals need when they are unable to care for themselves and need help with Activities of Daily Living (ADLs) - bathing, dressing, transferring, toileting, continence and eating - or they have severe cognitive impairment. The need for long term care can result from an accident, chronic illness or short term disability, or from advancing age.
... And Who Needs it?
All told, nine million people of all ages have disabilities so severe that they require personal assistance to carry out their everyday tasks. This takes a large toll on families as well, since four out of five people who take on the role of primary helper are relatives.
It's wise to plan now for the possibility of needing long term care.
How Much it Costs and Who Pays
The cost of long term care is high – well beyond the reach of most people. For example, nursing home care can range from $35,000 to $80,000 a year. The national average is currently $41,000 a year. Home care averages $12,000 a year, and with the added cost of skilled help, is often much higher.
Many people think that health insurance or government programs will pay for long term care, but that usually isn't the case. Most group medical plans and HMOs don't cover long term care expenses. Currently, Medicare pays only for short term, skilled nursing home care following hospitalization. And state Medicaid programs require recipients to spend down their assets to povery level to qualify for assistance.
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