What exactly is long-term care insurance?

Long-term care insurance is a type of personal insurance that can assist you if you cannot care for yourself due to a prolonged illness or disability. This coverage typically covers skilled, intermediate, and custodial nursing home care. Home health care, adult day care, and assisted living are also frequently included. These policies often pay a set sum per day or per visit to state-licensed institutions or caregivers who also participate in Medicaid and Medicare.

Is long-term care distinct from conventional medical care?

Long-term care is sometimes required for someone with a chronic physical illness, a handicap, or a cognitive impairment such as Alzheimer’s. Help with daily activities, home health care, respite care, hospice care, adult day care, nursing home care, or assisted living facility care are all examples of long-term care services.

Is long-term care costly?

The cost is determined by the amount and type of care required and where it is obtained. The average annual cost of nursing home care in the District of Columbia in 2013 was $74,460-$91,250 (for a semi-private room) and $86,505-$102,049 (for a private room). Assisted living institutions reported annual prices ranging from $40,320 to $46,170, while home care costs varied from $45,760 to $46,170.

What are my choices for financing long-term care?

Long-term care is paid for in a variety of ways. These include using personal resources, long-term care insurance, and, for those who qualify, Medicaid. Long-term care is typically not covered by Medicare supplement or workplace health insurance. Long-term care insurance will cover a portion or all of your long-term care expenses.

Does Medicare cover long-term care?

Not at all. Following a hospital stay, Medicare will pay for some home health care and skilled nursing facility care called continuing care. It does not cover nursing home or long-term home care.