Not everyone needs Long Term Care Insurance (LTCI), but everyone needs a long term care plan. While many think they can rely on government-provided benefits such as Medicare or Medicaid to pay for coverage, they may be mistaken. Here we’re busting the myths and misconceptions of what Medicare and Medicaid cover.
Common Myths and Misconceptions
Medicare Part A covers nursing home care.
Yes and No. Medicare Part A covers 100 days of skilled nursing care such as changing sterile dressings. It does not cover custodial care which is most the most common form of long term care, such as when you need help bathing or dressing. If custodial care is the only care you need, it is not covered by Medicare.
In addition, you must enter a Medicare-approved skilled nursing facility within 30 days of a hospital stay that lasted at least three days. Care in the facility must be related to the same condition from the hospital stay.
Medicare Part A & B covers home care.
Medicare Part A and Part B only cover eligible home health services including:
- Physical therapy
- Skilled nursing care
- Speech-language pathology services
- Continued occupational services, and more
Medicare Part A and Park B does not cover:
- 24-hour care at home
- Meals delivered to your home
- Personal care
- Homemaker services
In addition, you must meet all eligibility requirements to be eligible for allowed home care services including use of a Medicare-certified home health agency, certified by your doctor to be home bound, and others.
Medicaid will pay for my long term care services.
Maybe. It depends on your eligibility including your assets.
Medicaid is designed to pay for care for low-income, chronically ill, and disabled individuals. You must spend down to $2,000 of assets to be eligible. Certain restrictions may apply based on your state.
Medicaid is free. I don’t have to pay a thing.
Not quite. Medicaid doesn’t count your home as an asset for eligibility.
Many states have aggressive estate recovery programs to get paid back for the funds used to support you while you needed care. This means they can seize your home after you pass away. For many families, this may mean losing the family home to the state to pay back the debt.
Long Term Care Insurance Protects Your Income, Assets, and Your Family
So, who needs Long Term Care Insurance? If you have assets to protect and income to pay for it, Long Term Care Insurance offers financial protection by paying for care services when you need it most. Understand your options, including the common myths behind what government programs cover you and what don’t.
Curious to learn more about Long Term Care Insurance? Get an instant LTCI quote with highly-rated insurance companies here.