Long-Term Care Myths | Senior Finance Advisor

RETIREMENT PLANNING

Long-Term Care Myths

April 25, 2019

CATEGORY

Long-Term Care Myths

April 25, 2019

While the need for long-term care is something that no one hopes for, the truth is that someone turning 65 today has a 70 percent chance of needing long-term care services or support in their lifetime. This is why it’s so important to be financially diligent with healthcare aging needs and to understand the facts about long-term care.

Do you know the facts about paying for long-term care? There are myths circulating which is why it’s more important than ever before to educate yourself on the truth about long-term care so you can proactively plan your finances for a successful retirement.

Four Long-Term Care Myths Debunked

While roughly one-third of today’s seniors may never need care, 20 percent will need it for more than five years. Paying for those kind of care services can cause a great financial burden. The problem is that many Americans don’t understand the facts about long-term care costs and benefits. It pays to know the details about long-term care so you can plan for future needs.

Here are four long-term care myths debunked:

Myth #1: I have to have no assets to qualify for Medicaid.

Reality: Medicaid qualifications differ depending on state law, but in most states you are not permitted to keep more than $2,000 in countable assets to receive Medicaid. However, there are certain assets people can keep and still qualify.

Assets counted for Medicaid eligibility often include,

long-term care services often include,

  • Burial spaces
  • Business or trade property
  • Household furnishings
  • Life estates
  • Personal property and household belongings
  • Primary residence
  • Burial spaces and funerals
  • Personal vehicle
  • Assets held in specific types of trusts

Additionally, the non-applicant spouse can keep some of the couple’s countable assets according to the Community Spouse Resource Allowance.

Myth #2: Medicare or other health insurance will pay for my healthcare expenses.

Reality: In most cases, Medicare will not cover long-term care because Medicare does not cover custodial and/or intermediate care like assistance with activities of daily living. Medicare will cover in-home care from a nurse, therapist, or social worker but only for up to 21 days. In a skilled nursing facility, Medicare will pay for the first 20 days. For days 21 - 100, Medicare will pay only a portion and the beneficiary pays $170 per day. Generally speaking, other forms of health insurance do not cover long-term care services either. Some plans provide minimal care and benefits but most are short-term. long-term care insurance can be purchased to help alleviate some of the long-term healthcare costs.

Myth #3: I won’t need long-term care. I am healthy enough, young enough, and even if I do get sick, my family will help me.

Reality: Most people turning 65 today can expect to use some form of long-term care during their lifetime. For people under the age of 65, accidents or chronic illness can lead to unexpected long-term care needs. In fact, the U.S. Department of Health and Human Services (HHS) estimates that nearly 8 percent of people between 40 and 50 have a disability that could ultimately require long-term care. And, while it is true that most people can live at home longer with the help of family and friends, there may come a time where unpaid family caregivers are no longer able to help. If care needs exceed what family can do, long-term care is the next viable option. Ultimately, we do not know the future and the numbers suggest that it is best to plan for long-term care services.

Myth #4: My savings are enough.

Reality: Even if you have retirement savings, it still may not be enough to cover long-term care costs. A report from Genworth found that the national median for a private room in a nursing home is $8,635 per month. For a home health aide, the national median is $4,195 per month. These costs typically exceed what the average retiree can afford each month.

If you are concerned about affording long-term care in your retirement, connect with a fiduciary financial advisor. A fiduciary financial advisor can give you an honest assessment of your finances now and help you plan for the care you may need down the road.

Let us help.

With our trusted network of advisors, we’ll connect you with up to three established planners in your area.

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Let us help.

With our trusted network of advisors, we’ll connect you with up to three established planners in your area.

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Long Term Care Myths

Long-Term Care Myths

While the need for long-term care is something that no one hopes for, the truth is that someone turning 65 today has a 70 percent chance of needing long-term care services or support in their lifetime. This is why it’s so important to be financially diligent with healthcare aging needs and to understand the facts about long-term care.

Do you know the facts about paying for long-term care? There are myths circulating which is why it’s more important than ever before to educate yourself on the truth about long-term care so you can proactively plan your finances for a successful retirement.

Four Long-Term Care Myths Debunked

While roughly one-third of today’s seniors may never need care, 20 percent will need it for more than five years. Paying for those kind of care services can cause a great financial burden. The problem is that many Americans don’t understand the facts about long-term care costs and benefits. It pays to know the details about long-term care so you can plan for future needs.

Here are four long-term care myths debunked:

Myth #1: I have to have no assets to qualify for Medicaid.

Reality: Medicaid qualifications differ depending on state law, but in most states you are not permitted to keep more than $2,000 in countable assets to receive Medicaid. However, there are certain assets people can keep and still qualify.

Assets counted for Medicaid eligibility often include,

long-term care services often include,

Additionally, the non-applicant spouse can keep some of the couple’s countable assets according to the Community Spouse Resource Allowance.

Myth #2: Medicare or other health insurance will pay for my healthcare expenses.

Reality: In most cases, Medicare will not cover long-term care because Medicare does not cover custodial and/or intermediate care like assistance with activities of daily living. Medicare will cover in-home care from a nurse, therapist, or social worker but only for up to 21 days. In a skilled nursing facility, Medicare will pay for the first 20 days. For days 21 - 100, Medicare will pay only a portion and the beneficiary pays $170 per day. Generally speaking, other forms of health insurance do not cover long-term care services either. Some plans provide minimal care and benefits but most are short-term. long-term care insurance can be purchased to help alleviate some of the long-term healthcare costs.

Myth #3: I won’t need long-term care. I am healthy enough, young enough, and even if I do get sick, my family will help me.

Reality: Most people turning 65 today can expect to use some form of long-term care during their lifetime. For people under the age of 65, accidents or chronic illness can lead to unexpected long-term care needs. In fact, the U.S. Department of Health and Human Services (HHS) estimates that nearly 8 percent of people between 40 and 50 have a disability that could ultimately require long-term care. And, while it is true that most people can live at home longer with the help of family and friends, there may come a time where unpaid family caregivers are no longer able to help. If care needs exceed what family can do, long-term care is the next viable option. Ultimately, we do not know the future and the numbers suggest that it is best to plan for long-term care services.

Myth #4: My savings are enough.

Reality: Even if you have retirement savings, it still may not be enough to cover long-term care costs. A report from Genworth found that the national median for a private room in a nursing home is $8,635 per month. For a home health aide, the national median is $4,195 per month. These costs typically exceed what the average retiree can afford each month.

If you are concerned about affording long-term care in your retirement, connect with a fiduciary financial advisor. A fiduciary financial advisor can give you an honest assessment of your finances now and help you plan for the care you may need down the road.