ESTATE PLANNING PROBATE NEWSLETTER
Advances in modern medicine have made it possible for us to live longer. For many who do live longer, living assistance becomes a necessity.
Studies have shown that 40% percent of Americans over 65 will require some form of assisted living at some point in their lives. The average national cost of nursing home care of $45,000 per year - care that is not covered under your regular health insurance.
Full Medicare coverage is limited to the first 20 days of a nursing home stay, with partial coverage for an additional 80 days. After your 100th day in a nursing home, Medicare provides no coverage. With recent statistics showing that about 10% of us can expect to be in a nursing home for more than 5 years, it is important to address the issue of long-term care planning.
Long-term care insurance policies pay a daily benefit toward the cost of any long-term care you require in exchange for your payment of premiums. This is a relatively new form of insurance that is subject to many variations, depending on the insurance company, and is not nearly as standardized as other forms of insurance (such as auto and homeowner's insurance), so review policies carefully.
Most long-term care insurance policies cover skilled, intermediate, and custodial forms of care in licensed nursing homes.
Skilled care is round-the-clock care for a medical condition, under the supervision of a doctor.
Intermediate care is care on an occasional or "as needed" basis, typically provided by trained professionals under the supervision of doctor.
Custodial care comprises about 90 percent of all long-term care, and consists of assistance with daily living, such as assistance in bathing, dressing, and eating.
Some policies cover home care services, such as physical therapy and skilled or non-skilled nursing care. Some policies cover adult day care, assisted living, and hospice care. Some policies will cover modifications to your home which are medically necessary, such as installing wheelchair ramps.
Most policies will not cover care related to alcohol or drug abuse, self-inflicted injury, care provided outside of the United States or Canada, and certain mental and nervous disorders. Almost all policies will, however, cover you for Alzheimer's disease and other cognitive disorders.