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Myths about LTC
1. The Government or Health Insurance Will Cover Me.
Conventional health insurance and HMOs generally cover only skilled care provided by nursing homes and home health care agencies. Medicare does cover some home health aide services, but only if the person is receiving skilled care. Most LTC* is not skilled care. Disability income insurance does not cover LTC services.
*LTC involves the help or supervision provided for someone with a severe cognitive impairment or a chronic illness or disability that prevents them from performing at least two activities of daily living. Activities of daily living include: bathing, dressing, eating, toileting, transferring, and continence.
2. I'll Be Able to Pay for It Myself.
LTC insurance can seem expensive, but the cost of not having this important insurance protection can be much greater. For example, the national average cost of a private room in a nursing home is $203 per day, or more than $74,000 annually, and the average hourly cost for a visit by a home health aide is $20.
Source: Long-Term Care Facility Costs—A Nationwide Quantitative Evaluation of U.S. Facilities, Prudential Financial Global Market Research, April 2006, www.prudential.com/insurance/longtermcare. For a copy of this report please call 800-732-0916.
3. My Family Will Take Care of Me.
Time, distance, and both spouses working have made it much more difficult for many families to provide family members with all the LTC needed. Imagine the financial and emotional burden you and your family would endure if you suddenly needed LTC.
4. Medicaid (Medi-Cal) Will Take Care of Me.
Medicaid (Medi-Cal) is the federal-state health insurance program designed to pay for nursing home care for those who are very poor. Medicaid (Medi-Cal) dictates the type, amount, and location of care, and can only be used in limited cases to pay for an assisted-living/residential-care facility or home health care. |
