Paying for Care

Most people are shocked at the cost of long-term care in the United States. For 2017, the average nationwide cost of a year in long-term care was over $80,000. Of course, that figure can fluctuate considerably depending on the type of care you choose and where the facility is located.  The cost of care, however, is something that should be considered in any case. There are several options for covering the cost of skilled nursing care, including:

• Paying out of pocket – paying out of pocket is always an option; however, given that the average length of stay in a long-term care facility is 2.5 years, your retirement nest egg is likely to diminish, if not disappear, if you are forced to pay out of pocket indefinitely.
• Long-term care insurance –  most health insurance policies specifically exclude long-term care expenses. You can, however, purchase a separate long-term care insurance policy. The younger you are when you purchase the policy, the lower the monthly premiums will be. Keep in mind though that you must pay those premiums without fail until such time as you need the benefits offered by the policy. If you did not purchase a policy when you were younger, purchasing one now will likely be cost-prohibited, if not impossible.
• Medicare – you may be surprised to learn that Medicare only covers nursing home care under very strict conditions – and even if those conditions are met, Medicare Part A will only cover up to 100 days in a skilled nursing facility per “spell of illness.” Moreover, if you stay for more than a few days you will have a significant co-pay. If you have Medigap the co-pay will likely be covered by that policy. If not, you will be responsible for paying the co-pay.
• Life insurance benefits – depending on the type of life insurance policy you have, you may be able to use some, or all, of the death benefits to cover long-term care expenses. Keep in mind, however, that if you use your death benefits to cover skilled nursing care, those benefits will not be available for loved ones to use after your death.
• Medicaid – unlike Medicare, Medicaid will cover expenses related to skilled nursing care indefinitely and without as many conditions precedent. The catch though is that you must first qualify for Medicaid. For seniors with significant assets, this can be problematic if you did not incorporate Medicaid planning into your estate plan at least several years ahead of the need to qualify for benefits. Never assume that it is too late though because there are some last-minute Medicaid planning strategies that may still work for you.

Jeff Jinks Attorneys Can Help

We understand that choosing and paying for a skilled nursing care facility can be challenging. Our team is dedicated to providing you with legal and financial counseling that can help you navigate the numerous options available and find solutions that work for you and your family. Our firm includes not only the legal expertise needed in these situations but also a Senior Liaison with over 30 years nursing home management experience who is able to assist families facing this decision process.