can your financial planning be resolved without planning for this significant exposure? long term...
TRANSCRIPT
CAN YOUR FINANCIAL PLANNING BE RESOLVED WITHOUT PLANNING FOR THIS SIGNIFICANT
EXPOSURE?
Long Term Care Insurance
The Basics
The need for Long Term Care affects the entire family. It is a critical social issue as only 7% of our population has this coverage and 70% of our population is going to need some form of care at some point in their lives.
The need for long term care may happen to anyone…your spouse, a parent, a sibling. It can result from being chronically ill, from a severe cognitive impairment or something as unexpected as an accident or injury.
Many important questions arise:Who will take care of me?Will I be able to stay at home?What pot of money do I take from to pay for care?
Cost of Care
Some average costs for long-term care in the United States (in 2013) were:
$205 per day or $6,235 per month for a semi-private room in a nursing home
$229 per day or $6,965 per month for a private room in a nursing home
$3,293 per month for care in an assisted living facility (for a one-bedroom unit)
$21 per hour for a home health aide$19 per hour for homemaker services$67 per day for services in an adult day health care
center**Consumer Reports
How much care will you need
The duration and level of long-term care will vary from person to person and often change over time. Here are some statistics (all are “on average”) you should consider:
Someone turning age 65 today has almost a 70% chance of needing some type of long-term care services and supports in their remaining years
Women need care longer (3.7 years) than men (2.2 years)
One-third of today’s 65 year-olds may never need long-term care support, but 20 percent will need it for longer than 5 years
Those with congnitive issues typically have much longer periods of care.
Types of long-term care services
Type of CareNursing HomeAssisted LivingHome Health CareAdult Day Care
Who Pays for Long Term Care - Medicare
Only pays for long-term care if you require skilled services or rehabilitative care: In a nursing home for a maximum of 100 days,
however, the average Medicare covered stay is much shorter (22 days).
At home if you are also receiving skilled home health or other skilled in-home services. Generally, long-term care services are provided for up to 21 dyas.
Does not pay for non-skilled assistance with Activities of Daily Living (ADL), which make up the majority of long-term care services
You will have to pay for long-term care services that are not covered by a public or private insurance program
Who Pays for Long Term Care - Medicaid
Does pay for the largest share of long-term care services, but to qualify, your income & assets must be below a certain level and you must meet minimum state eligibility requirements
Such requirements are based on the amount of assistance you need with ADL
Other federal programs such as the Older Americans Act and the Department of Veterans Affairs pay for long-term care services, but only for specific populations and in certain circumstances
Who Pays for Long Term Care – Health Insurance
Most employer-sponsored or private health insurance, including health insurance plans, cover only the same kinds of limited services as Medicare
If they do cover long-term care, it is typically only for skilled, short-term, medically necessary care
Thank you for your time…
Contact Information
Scott SnowdenSnowden & Associates, Inc.(502) [email protected]