Long-Term Care FAQs
Q: What is long-term care?
A: Long-term care is custodial care for people who need help with the activities of daily living as a result of illness, injury, frailty, or cognitive impairment. Activities of daily living include dressing, eating, bathing, toileting, continence and transferring.
Long-term care can range from home care to intensive nursing home care. Common conditions that may require long-term care services include Alzheimerís disease, Parkinsonís disease, cancer, stroke, arthritis, diabetes, osteoporosis, fractures, and congestive heart failure.
Q: Where is long-term care provided?
A: Long-term care is provided in a variety of settings, including:
Q: Why do people purchase long-term care insurance (LTCI)?
- Adult day care facility
- Assisted living facility
- Skilled nursing facility
A: People purchase LTCI for a number of reasons, such as:
Q: What does long-term care cost?
- To avoid dependence on others
- To protect income and assets
- To protect their families
- To preserve their standard of living
- To ensure that they receive care where they prefer
- To ensure that their financial plans execute the way they intended
A: Long-term care services can be very expensive. Consider these national averages from 2014:
Source: Genworth 2014 Cost of Care Survey
- The average cost of a private room in a nursing home is more than $87,000 per year.
- The average cost of a home health aide is $20 per hour. If you need care for six hours a day, the annual cost would be over $43,000.
- Long-term care costs are rising at a rate of about 5 percent per year, and long-term care will continue to get more expensive over time.
Q: Will Medicare or my medical insurance cover long-term care costs? What about Medicaid?
A: Medicare or your health insurance may cover up to 100 days of care in a skilled nursing facility if certain conditions are met. They may also provide limited coverage for skilled home care. Medicare does not pay for any custodial care expenses, however. In order to qualify for Medicaid, you must spend your assets down to poverty levels.
Q: What does LTCI cost?
A: A number of factors affect the cost of LTCI premiums, particularly your age, the state of your health at the time you apply for coverage, and the type of coverage you choose. Plans typically offer individual product options that you may decide to add to your policy.