This blog post is designed to provide general information on the subjects covered. It is not, however, intended to provide specific estate planning, insurance, tax or legal advice. Please note that LTC Consumer and its representatives do not give financial planning, tax or legal advice. You are encouraged to consult with your tax advisor or attorney concerning your own situation.

Long Term Care Facility Definitions

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Long term care services can be received in your home or in a facility. But how is one long term care facility different than another?

The following will help explain the similarities and differences of long term care facilities, including the differences in cost.

Adult Day Health Care

What is it?

Adult day health care centers are non-residential facilities that help support the daily needs of adults through care and companionship. Each facility is staffed with professionals and care is received in a group setting.

These centers often provide transitional care and short-term rehabilitation after a hospital discharge. Programs are available to offer relief to family members and caregivers so they can work, handle their personal business, or relax knowing their family member is cared for and safe.

How much does it cost?

The U.S. average cost of adult day health care is $64 per day. Some centers may allow you to pay hourly rates if you don’t need a full day of care.

Does insurance cover it?

Most long term care insurance policies cover adult day health care. Review your insurance policy to make sure this service is covered.

Assisted Living Facility

What is it?

Assisted living facilities offer apartment-style homes for elderly or disabled people who need housekeeping, prepared meals, or nursing care. These facilities offer greater independence for those who don’t need 24/7 care. Residents often choose assisted living for companionship and access to day-to-day assistance as needed.

How much does it cost?

The cost of assisted living can vary by state and the care needed for daily activities. The 2015 average cost of care in the state of California for assisted living was almost $50,000 for one year of care, while Missouri’s average cost of care for one year was around $30,000.  Check out our cost of care map to see the average cost in your state.

Does insurance cover it?

Long term care insurance can cover the expenses incurred in assisted living. Medicaid may cover assisted living for eligible patients, but this coverage is not available in every state.

Memory Care/Alzheimer’s Facility

What is it?

Memory care facilities offer a unique form of long term skilled nursing care for those suffering from Alzheimer’s, dementia, or other memory problems. Patients live in a memory care unit under careful watch and care of licensed and trained staff.

How much does it cost?

In 2012, Genworth estimated the U.S. average cost for memory care was $5,000 per month which totals $60,000 per year, depending on the facility and state.

Does insurance cover it?

Long term care insurance covers memory care facilities up to your benefit allowance. Medicaid may cover memory care facilities for eligible individuals. Contact your state Medicaid program for more information.

Nursing Home Facility

What is it?

Nursing home facilities offer skilled residential care 24/7. Nursing homes are for individuals who don’t need to be in a hospital, but can’t be cared for at home. Many nursing homes look like a hospital with nursing aids and nurses offering medical care including speech, physical, and occupational therapy.

How much does it cost?

The cost of nursing facilities can vary by state as well as room type (shared vs private). The 2015 average cost of care in the state of California for a private room in a nursing homes was about $112,000 for one year of care, while a semi-private room was about $91,000 per year for care.

Does insurance cover it?

Most long term care insurance policies cover nursing home care. Medicaid typically covers nursing home care for those who are benefit eligible. Check your state requirements for more information.

These numbers represent today’s cost of care with rates continuing to rise due to inflation. Do you have a plan to pay for your care? Learn more about long term care insurance and how it can guard your income and assets against the rising cost of care.

LTC Consumer is an independent, free online service to help consumers understand what long term care insurance is, how it works, and how to evaluate coverage options. Our mission is to provide an educational, no-pressure resource for learning about long term care planning, with the opportunity to speak with specialists who can help them.

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