Across Generations - Long Term Care Financing

Across Generations - Long Term Care Financing

Changing health needs, including the need for long-term care, puts individuals and families at risk of financial instability. This document explains long-term care, helps you identify the costs, and lists funding options.

RECOGNIZE THE POSSIBILITY OF LONG-TERM CARE

Long-term care is about needing help with daily living to be independent. People who need long-term care may need help eating, bathing, dressing, walking, toileting, and taking medicine. Care occurs in one's home, at community centers, or in skilled nursing facilities. It's important to plan now, before a crisis occurs. Then you'll be better able to cover costs in case you encounter chronic health problems, outlive unpaid caregivers, or live to be 85 or older, especially if you are a woman.

UNDERSTAND POSSIBLE COSTS

Most people underestimate the costs of long-term care, especially in-home care.

Receiving care in your home can be very expensive. A home health aide can cost $10 to $80/hour.

Community services, such as adult day care, average $60 per day.

Skilled nursing facilities in the USA average $5000 per month.

PROTECT YOUR FUTURE FINANCES

There are several ways to finance long-term care. A combination of your resources, insurance, and government options provide protection.

Personal resources to fund care include income, savings, equity from the sale of one's home, and unpaid caregivers.
Medicaid, also known as Medical Assistance, is a government program that pays for home, community and skilled care. People must meet low-income and asset rules to be eligible.
Medicare provides limited, home health care coverage. It covers short-term, but not long term needs.
Very few health insurance policies cover long-term care. There are policies specific to it. Compare policies carefully, and make sure you can afford the premiums today and in the future. No policy will protect you against all costs.

Your goals should influence which options are best for you. Talk with family members to identify later life financial goals and expectations. Options to finance long-term care decrease with age. Plan now. For more information, visit Long Term Care . It's a free on-line resource center. It includes unbiased planning tools, fact sheets, conversation starters, common myths, and a self-study.

Title:	Across Generations - Long Term Care Financing	Number:	847
Script writer:	Marlene Stum	Source:	Univ of MN Dept of Family Social Science Curriculum: Critical Conversations About Financing Long Term Care, Long Term Care
Date:	2003	Reviewer:	Cindy Petersen

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