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It’s not true
that most long-term care costs
are paid by government sources
through Medicare and Medicaid.
Most
long-term care costs are paid
for out-of-pocket from the
private income and life savings
of individuals. In addition,
family caregivers provide a
majority of the total long-term
care needed without any pay and
with varying financial
consequences.
Medicaid,
the largest source of payment
for long-term care, pays
approximately 46 percent of
nursing home costs (when an
individual’s resources meet
eligibility criteria). Medicare
pays very few long-term costs;
long-term care policies
currently pay for eight percent
of long-term care costs.
Health
insurance does not cover
long-term care costs. Even
Medicare supplement policies are
not designed to do so. Examine
your existing policy or coverage
carefully to know what your plan
covers.
Long-term
care insurance is not the only
financing option, either. Both
private and public options can
be put together to provide care.
These include: self-insuring,
home equity, reverse mortgages
and accelerated death benefits,
as well as long-term care
insurance. Medical Assistance is
a safety net for individuals
meeting low income and asset
eligibility criteria.
Children
can not be held liable for their
parent’s long-term care costs.
Although 30 states have statues
that establish a duty for adult
children to care for their
indigent elderly parents,
federal law does not permit
states to use the income or
resources of non-spouses in
determining the Medicaid
eligibility of an adult. States
cannot collect reimbursement
from non-spouses.
For more
information, visit the
University of Minnesota
Extension website,
www.financinglongtermcare.umn.edu
[1].
(Rosemary
Heins is a family resource
management educator with
University of Minnesota
Extension.)
Source URL:
http://www.hutchinsonleader.com/node/5426
Links:
[1]
http://www.financinglongtermcare.umn.edu
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