4 Ways to Pay

There are only 4 ways to pay for your Long-Term Care costs. Let’s take a look:

Well unfortunately, most seniors think that their primary health insurance company and Medicare will pay for long term care, but that’s simply not true. While no one ever thinks they will experience a sickness or disability in their lifetime, statistics prove otherwise. According to the Social Security Administration, anyone aged 65 or older has great than a 60% chance of experiencing at least 1 long term care incident in their lifetime. So if you believe you are going to end up being in the 1/3 of seniors who never experience this incident, then things will probably turn out okay for you…but the real questions is this: What is the consequence?

The Average Annual Cost of Long Term Care Is $77,000
Most families will go broke in less than 2 years if a loved one falls ill and required long term care. Long Term Care is simply defined as any sickness or disability lasting more than 90 days. The tragedy in all of this is that it could have been prevented. It’s a sad day when what was meant to go towards a happy retirement or to the kids or charity, ends up going to pay for home healthcare or to the nursing home.

The Big Medicaid Myth

Like most folklore and myths, someone, somehow, somewhere started a rumor that Medicaid is for poor broke people. Nothing could be further form the actual truth. As a matter of fact, over 50% of people in nursing homes are on Medicaid. Does that mean that 50% of people in a nursing home are poor? Hardly!
So in its purest form, Medicaid is the Long-Term Care avenue of payment for most people in middle-class America.

4 Ways To Pay For Long Term Care

The following are the different ways from which a nursing home payment can be made.
1.    Medicare: Limited benefits
2.    Long Term Care Insurance Or Private Insurance: This works best if the person is under 65 and still employed.
3.    Private Pay: (out of your own pocket) Most people cannot sustain $7,000.00 a month for nursing home payment though.
4.    Medicaid: Families with assets over $1 million typically can do a plan to sustain three to five years of $7,000.00 a month for their spouse. Estates that have less than $100,000.00 in assets and a house are typically on Medicaid anyway. So as you can see, it’s the vast majority of people with assets from $100,000.00 to $800,000.00 (middle-income America) that get robbed of their lifelong work and the well spouse gets robbed of their retirement if they don’t do a plan and being Medicaid in as a payer source somewhere along the way. Notice I said bring Medicaid in as a payer source somewhere along the way? This is because the 2005 Deficit Reduction Act changed all the rules. So at a high level this is what things look like in today’s environment with NO ASSET PLANNING: Medicare will pay initially for up to 20 days, more with a Medicare Supplemental Policy. When Medicare ends most folks will then enter into a period of private pay typically ranging from 2 to 12 months – this period depends completely on how long it takes to spend down their assets to $1,500 - $2,000. Once the estate is depleted, Medicaid enters the picture.

Learn What You Can Do NOW To Qualify For Full Medicaid Benefits…Without Spending Down Your Life Savings or Unnecessarily Exposing Your Home To A Government Seizure Medicaid Lien!