Long Term Care

As you enter your senior years, funding for long term care can become an issue if your health is failing or you need assistance on an ongoing basis. How to pay for long term care can become a serious consideration. In most cases, a proactive approach would involve financial planning during your earlier years to establish an asset base which can be drawn from. Insurance for long term care is provided by some organizations. This type of policy can provide peace of mind for seniors who the funds to purchase a policy. In some cases, the state can provide assistance if you have a low asset base or minimal income. This article will delve into the finer points of funding long term care.

Does Medicare Pay For Long Term Care?

Often, the problem for residents of the US is that they incorrectly assume that Medicare, standard health insurance policies or Medicaid will pay for long term care. This is not necessarily the case and since long term care can run upwards of $50,000 per annum, prudent financial planning is called for. Medicare does provide federal health insurance for people over the age of 65 and some individuals with disability under the age of 65. Medicare does not cover long term care. It may, however, provide some help for assisted living costs for short term services that involve the recovery from surgery, injury or illness. There are strong stipulations for Medicare eligibility. Generally, the coverage is detailed in Part A and Part B of Medicare and depends on the satisfaction of certain conditions. You would need to check that you do satisfy these conditions.

Does Medicaid Pay For Long Term Care?

Medicaid is designed to render assistance to individuals who have a low income and a minimal asset base. For individuals who meet the state determined poverty level, Medicaid will pay for the nursing facility provided the establishment is certified and meets government standards. The coverage amount is determined by each state.

In the UK, the state may provide some assistance towards paying for long term care depending on your circumstances. The local service department will make an assessment of your needs to determine eligibility dependent on your level of savings and income. This may result in payment for long term care in full or in part. You may also be eligible for the Disability Living Allowance if you are under 65 or the Attendance Allowance if you are over 65. This will not be paid if the local authority assists with payment for long term care. Despite the fact that social security benefits across the UK are the same, state benefits can differ.

In The US, long term care insurance can provide greater choice for long term care. Changes to legislation in 1997 allows individuals to include out of pocket expenses for long term care and any associated premiums as a deductible expense provided they exceed the threshold (currently 7.5%) established by the government. Annual insurance for long term care is generally lower at age 50 and becomes considerably more expensive by the age of 65 and for future years. You should consider these costs as part of your financial planning.

Despite the fact that assisted living and paying for long term care is largely a private expense, other government programs can provide some help for assisted living. These programs include the Supplemental Security Income (SSI) or Social Services Block Grants. Due to the changes in government policy and legislation, it is advisable to check with the relevant government departments for the most up to date policy on paying for long term care.

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