What About Long Term Care?

It is estimated that of the over 44 million Medicare beneficiaries in the United States, about 40% of them will need Long Term Care (LTC) in the future.  There are actually 76 million seniors in the country at present, however not all of them are participating in Medicare.  As the Baby Boomers continue to get older and retire, all the numbers will increase.

Though Medicare covers some LTC services, the coverage is somewhat limited.  For instance, studies show that quite a large amount of that 40% will need long term care for over 2 years. At an average of $75,000 to $100,000 per year, that is a lot of money. 

Medicare pays for nursing home rehabilitation after a person has been in the hospital.  Usually they leave the hospital and are taken to the nursing home, and Medicare allows for 100 days in the nursing home.   Though Medicare allows for 100 days in a nursing home, they usually only approve and pay for about 30 days.  They also only pay for 17 days of physical therapy per year.  Medicaid may help offset some of the other costs, but not a lot.

Most Medicare recipients are not aware of these limitations.  They think they are covered for a lot more time and a lot more services.  When the Medicaid Deficit Reduction Act was passed in 2005, it created substantial limits to what services were covered, and LTC coverage did not fare well.

There are a couple of options that seniors have in this situation.  One option is to look into a Long Term Care supplemental policy now – before you absolutely need it.  Make some comparisons to see what type of coverage you can get and what the premiums are, and get the best coverage you can.  This is important because often a senior in perfect health can accidentally trip, fall and break a leg or a hip, leading to the necessity of care and rehabilitation.  It is good to check the options available before anything like this happens.

The other option is to talk to your family.  What often happens if long term care is not available is that the family ends up taking care of their loved one.  One way to address the subject is to ask in advance what they think the plan should be if you get hurt or have a long term illness.  You can also ask if they will help you purchase a long term care policy which will relieve everyone of stress and ensure that you have the proper care if something should happen.

Be aware of your coverage.  Explore the various long term care policies available.  Don’t leave yourself vulnerable or surprised in the event that you need this type of care in the future.