When families are faced with having to make decisions about the care of a parent or other loved one, their understanding of long-term care is often very different from the facts. According to the Genworth 2012 Cost of Care Survey, in the Capital Region the cost of LTC averaged from $1,000 to $4,000 a month for home-based care; $4,340 a month for assisted living; and well over $9,000 per month for nursing home care.
Making care decisions can be very stressful both emotionally and financially so I hope by sharing this series of myths and facts about long-term care (LTC) will help reduce the stress related to this process and better prepare you for the costs associated with long-term care.
Myth: Most LTC costs are paid by Medicare, the federal health insurance program for individuals age 65 or older.
FACT: Because Medicare is health insurance for those over 65, many assume LTC is included in the coverage; however, Medicare does not pay for LTC. Medicare coverage focuses on treating acute, short-term illnesses. Although it may include rehabilitation care in a nursing home or home care (certain medical needs), it is for a limited time (less than three months).
Myth: My existing insurance will pay if I need LTC.
FACT: Studies show that almost one-third of consumers think they are covered by an existing insurance of some type for LTC, but they are not. It is a myth that health insurance policies will cover LTC costs. Medicare supplement policies are not designed to do so. Disability insurance typically protects against the loss of income due to a disability. But this type of insurance does not pay for the supportive services or the daily living help a person may need to remain independent. Long-term care insurance policies are designed to cover a range of LTC services.
Myth: Most people are buying LTC insurance to protect themselves.
FACT: While the number of people purchasing LTC insurance has grown in the last decade, current estimates show that about 10 to13 percent of Americans over age 55 have LTC insurance coverage. Private and public employers are increasingly offering group LTC insurance coverage as a benefit option for their employees. (cont.)
