Examine the decreasing role of public LTC cost support and the increasing need for private coverage
Once upon a time, Medicare reimbursed providers for the actual cost of patients’ care. Since 1983, it has instead been paying providers a set fee. As if that didn’t compromise Medicare recipients enough, once you’ve stayed a certain amount of time in the hospital, Medicare stops payment regardless of your condition. You are then released as quickly as possible. Most people finish recovery in a LTC facility or receive services in their home after they are released. Unfortunately, Medicare only covers these costs if recovery is expected and in Medicare-approved facilities.
Because of this, and because of the strict requirements Medicaid has for qualifying, the cost of LTC can be insurmountable and quality LTC can sometimes be unattainable. Medicare, or even Medigap does not cover most nursing home stays, as previously stated. This is especially discouraging when considering that a year in a Long-Term Care facility costs at least $40,000, on average. For many, costs will be even higher.
Reviewing the Actual Costs Involved with Long-Term Care:
In-home Long-Term Care (LTC) can grow to be unmanageably expensive for an individual on their own. Home health aide visits cost about $50 on average, almost $20,000 a year. In-home skilled nursing costs $95 per visit on average, about $25,000 a year. In many cases, it is perceived that in-home care can cost less than a LTC facility. However, when loss of family caregiver's income and the cost of adult day care services are considered, it is not necessarily cheaper.
Because LTC services are so expensive, a stay in a LTC facility for as few as thirteen weeks impoverishes about half of all single elderly people. When you are impoverished, Medicaid will help with costs, but if you are married your spouse must also be destitute for you to qualify. The mounting costs of Long-Term Care have led to an increased need for private financing, as many patients find they cannot rely on the government, pensions or health care plans to cover LTC needs. As a result, life savings and other assets very often go not to loved ones, but to LTC facilities. A Long-Term Care insurance policy can help alleviate this situation.
Long-Term Care policies are usually guaranteed renewable, so you remain eligible as long as you pay premiums. One reason it’s good to buy this type of insurance earlier in life is the premium is based on your age at the time you buy it. Usually you then pay the same rate for the life of your policy. So start comparing policies now, for yourself and your loved ones.
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