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Long term care can be broadly
defined as care provided by another party for the benefit of
those who are unable to care for themselves. Generally, long
term care refers to the personal care and other related services
provided on an extended basis to people who need help with certain
Activities of Daily Living (ADL's) or who need supervision due
to severe cognitive impairment such as Alzheimer's Disease. Care
can be provided at home, in the community, in an assisted care
facility or in a nursing home.
The need for long term care can
happen in an instant or gradually as a person's health declines.
Some of the reasons for receiving long term care include: chronic
disease, prolonged illness, injuries sustained as a result of
an accident, disability, or cognitive impairment such as Alzheimer's
Disease that limits a person's ability to think or reason.
Odds of needing it
We all think we won't need long
term care. Yet, Americans are living longer than ever. The longer
you live, the more likely you may become ill or have an accident
and need some type of long term care.
In fact, you may already know
of friends or family members who have needed long term care.
A sudden illness or injury can happen at any age. The odds of
entering a nursing home, and staying for longer periods, increase
with age.
Who pays for it?
Since the passage of the Health
Insurance Portability and Accountability Act (HIPAA) in 1996,
it is now clear who is primarily responsible for paying for long
term care: YOU.
Long term care services aren't
adequately covered by most types of insurance, or governmental
programs including Medicare
and Medicaid.
- Most private medical
and major medical insurance plans do not cover long
term care.
- Medicare generally covers some nursing home care,
but only for a limited time.
- Disability insurance only replaces lost income.
- Medicaid pays only for nursing home care after
you have spent most of your assets.
That's why many Americans are
looking at long term care insurance.
What are the types of care?
A common misperception is that
long term care means staying in a nursing home. Today, there
are other care options available. Long term care services can
be divided into two types of care: home and community care and
facility care.
Here are some examples of each
type of care:
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Home and Community Care |
Facility Care |
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Cost of Care by State
Long term care can be expensive.
The national average cost for a private room in nursing home
is $70,912 a year. Home care also adds up. For in-home assistance,
the national average cost is $22.15 per hour, or $46,072 per
year for 40 hours of help per week.
These costs are only expected
to increase. At an assumed 5 percent inflation rate, a year in
a nursing home, based on national averages, could cost over $110,008
in 2015 and over $179,191 in 2025. With 5 percent inflation,
the cost per year of in-home care, for 40 hours of help per week,
could be more than $71,473 in 2015 and almost $116,422 in 2025.
Overview | What
is long term care insurance? |
