How Medicare and Medicaid Fit In to Long-Term Care Planning

When it comes to long-term care, some people still are thinking, “Well, I’ll just depend on Medicare and maybe Medicaid.” They don’t realize how limited Medicare is in covering certain types of benefits. For example, to get any coverage for a nursing facility, you have to be in the hospital for at least three days, then be discharged and admitted to the facility within 30 days for the same condition. If you can jump through those hoops of fire, then you can get 100 days of coverage, for which you will still pay 20 percent. And after that, it’s done.

The government has made it explicitly clear that it doesn’t pay for long-term care—it’s clear in brochures and other publications. Medicare is not a solution for long-term care. Medicare should be viewed like health insurance.

The use of Medicaid to provide care has also been greatly restricted. The policies are clear: Medicaid is not to be used as a solution for wealthy people to transfer their money and save it. Medicaid was created for the purpose of providing medical assistance to low-income Americans. Some people feel too proud to go on Medicaid, even though they lack assets and can’t afford long-term care insurance. Meanwhile, some wealthy people are trying to get on those rolls. They try to reposition their assets to make themselves indigent on paper—but it’s much harder to accomplish that than it was 10 or 15 years ago.

These are complex programs for care that require expert knowledge in understanding terms, applications, eligibility, and even strategies for maximizing use. Talk to your financial advisor about long-term care and insurance and what might work best for your needs.

Check out this article for additional information! Insure-Your-Health-For-The-Long-Term-Now.pdf

Categories: Long Term Care, Medicaid, Medicare