- Many people mistakenly believe their Long-Term Care needs will be paid for by Medicare or their existing health or medical supplement insurance. In fact, long-term care typically is not paid for by health or disability insurance.
- Disability insurance provides coverage to replace part or all of your income if you become disabled. It does not provide coverage for the additional cost of the daily Long-Term Care you need as a result of the disability.
- Medicare is a federal program that provides medical insurance to older Americans. Like other health insurance, Medicare was designed to pay for medical care, such as doctor visits and hospital stays and not to pay for Long-Term Care. Medicare may pay for short term home care or care in a nursing home under certain limited circumstances, if the care is deemed necessary to address a specific medical condition and is ordered by a doctor. However, Long-Term Care that most people over 65 will need – assistance with basic daily activities of living – is not covered by Medicare.
- Medicaid is a health care program for lower-income individuals. Eligibility for Medicaid differs from state to state, but typically, you must meet certain requirements based on age, income and assets in order to qualify for Medicaid. For many people, this means that they must “spend down” most of their assets before they can qualify for Medicaid, leaving little for other expenses. In addition, not all care providers accept Medicaid. Skilled nursing facilities may limit the number of Medicaid beds available. Therefore, if you are relying on Medicaid to pay for your care, you may not be able to choose who provides your care or where that care is provided.
- Long-Term Care insurance is insurance specifically designed to pay for the care needed when a person is unable to perform Activities of Daily Living such as bathing, dressing, or eating as a result of illness or disability.
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