| March 2021 | MediGap Advisors Health & Wealth Newsletter | Vol. 17, Issue 3 |
Understanding Long-Term Care Costs
You’ve Worked Hard for Your Wealth; Don’t Let Bad Planning Take It All Away
The most frightening thing about getting older is not the grey hair or the extra leisure time. It’s the thought of losing your independence.
If you get sick or injured, or if you simply live to an advanced age, you might not be able to take care of yourself. Depending on how well you’ve planned for long-term care, there are two possible outcomes:
1.) You get the high-quality, compassionate care that you need, delivered in your own home and covered by your insurance
— OR —
2.) You’re forced into a low-quality nursing home and your kids are picking up the bill.
If it sounds scary, that’s because it is. Long-term care planning is the only way to ensure that no matter what happens to your health or your body, you can still be the one making decisions about your care.
What is long-term care?
“Long-term care” is a phrase that refers to a wide range of personal and medical services. Long-term care is designed for individuals who have lost their ability to function independently, whether it’s because of a temporary illness or injury, or physical and mental impairments as a result of advanced age.
Long-term care is most commonly associated with nursing homes and live-in care facilities. However long-term care also includes a broad range of in-home services and temporary care.
Who needs long-term care?
According to industry estimates, somewhere between 52% – 55% of Americans will need some form of long-term care in their lifetime.
How much does long-term care cost?
According to Longtermcare.Gov, the average per-day cost of a semi-private room in a nursing home was about $225 / day in 2016. This figure has almost certainly risen since then, and it’s a lot more for a private room.
The average cost of long-term care also depends on your location, your provider, and the amount of care you need. Like any other form of medical care, hidden charges, premium charges, and variable rates are all things to watch out for.
The different types of long-term care:
When most people hear the words “long-term care”, they think “nursing home”. While nursing homes are certainly one of the biggest potential threats to your wealth, they are not the only kind of long-term care that you need to plan for.
Home health care |
|---|
| If you are recovering from an illness or injury, but are well enough to leave the hospital, you might require home health care services. This can range from daily custodial care to just having a therapist or nurse drop by every few days. |
| Home health care average cost: ~$25 – $30 per hour |
Adult day care |
|---|
| Requiring physical or mental assistance might not mean that you have to move to a nursing home. Adult day care makes it possible to live with the family you love, while spending the day in a group setting with skilled professionals. |
| Adult day care average cost: $68 per day |
Hospice care |
|---|
| Hospice care can be delivered at a care facility or at home, providing compassionate care services to terminally ill patients who are nearing the end of their life. Fortunately, Medicare and most private insurance plans cover the cost of hospice care. |
| Hospice care average cost: Covered by Medicare |
Respite care |
|---|
| If we’re lucky, we will have loved ones at our side as we grow older, giving us the care we need as we all remain under one roof. But even if a loved one is taking care of you, they’re going to need a break every now and then. Respite care provides temporary relief to your caregiver, either through a temporary stay at a care facility or through home health services. |
| Average cost: $15-$40 per hour, or $120-$200 per day |
Planning for long-term care is the 4th Step of the Financial Protection Program
As a client of MediGap advisors, you have exclusive and complimentary access to the Financial Protection Program. This six-step course walks you through the most essential parts of retirement and legacy planning. Each step has been thoughtfully designed by our in-house experts, and presented in a way that makes it easier than ever before.
Whether you’re new to Medicare or simply looking to make a change, we can help. Our Personal Benefits Managers are standing by to answer all your questions. You can also visit the MediGap Advisors Blog for more helpful info on how to optimize your Medicare.
To your health and wealth,
Wiley P. Long, III
President – MediGap Advisors
