WHO PAYS FOR LONG-TERM CARE?

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Disclaimer: This website provides general information. It is not intended as a substitute for personal financial, legal or insurance advice.

Currently most LTC is paid for like this:

• Medicare and health insurance pay for a very limited amount of long-term care under restricted circumstances. Medicare covers only 12% of long-term care costs nationally.¹
• Individuals pay using their own personal assets that were intended for other purposes, often constraining the lifestyle of a spouse and eroding an estate intended for heirs.
• Family and friends provide much of long-term care "for free." Despite the best of intentions, this often creates great stress and other problems for the caregivers that are well documented. (See MSNBC: "How TLC Makes You Sick: Caring for loved ones endangers health, research says")
• Medicaid pays when all else fails and there is no more money to pay for private care, but Medicaid provides nearly all its care in nursing homes. Though it depends somewhat on geographic area, usually when someone goes on Medicaid the quality of care they receive can go down.
• Long-term care insurance, purchased by forward thinking planners who want to protect their estates and families from unnecessary burden, pays for all the required care or supplements family assets and labor to ease the burden.