Medicare does not cover long-term care. It covers skilled nursing care but not custodial care.
What is Long Term Care?
Long-term care, also called custodial care, is the name for assistance with the activities of daily living (ADLs). These activities of daily living include bathing, feeding yourself, using the toilet, and getting dressed. Often the people who provide these services are unlicensed, which we see in the case of the millions of family members and friends who act as caregivers. When you need to enlist a home health aide or move into a nursing home for these services, you often find that the costs of this care quickly rise.
Medicare Does Not Pay for Long Term Care
Unfortunately, Medicare does not cover long-term care services. Medicare only covers skilled, medically necessary services, such as the inpatient care you receive in a skilled nursing facility to wrap sterile dressings and care for injuries or illness. The long-term care services you receive at a nursing home are not covered if they are the only care you need.
Ways to Pay for Long Term Care
Medicaid is commonly used to pay for nursing home care. You may qualify for Medicaid if you have a low income and limited resources. Medicaid is a program administered by both the federal and state governments. It helps give people with few resources access to the health services they need. Medicaid covers long-term care, and even if you do not initially qualify for Medicaid, it is possible to become eligible. Many people become eligible for Medicaid thanks to the high costs of long-term care and effectively end up spending down their resources until they qualify and gain coverage.
Another way to prepare for long-term care costs is through long-term care insurance. Long-term care insurance is a policy that helps pay for skilled and non-skilled long-term care services. That can include care in a nursing home, adult daycare, assisted living, or home health care. When you begin receiving long-term care, your long-term care insurance policy will pay out a set amount each day to use toward your services.
Other people help fund their long-term care through annuities, retirement accounts, and savings. It is not uncommon for people to sell their homes to move into an assisted living or nursing home facility. Annuities are investment accounts that pay you a steady income during your retirement. You purchase an annuity in one lump sum or a few premium payments, then that money builds over time until you begin to draw from it for your retirement income. There are several other retirement accounts that can help you keep your savings ahead of inflation, so they do not lose value over time. Planning ahead can help you take care of long-term care costs, so you are not left worrying if debilitating illness strikes.
For help in navigating your Medicare coverage or planning for your future health care needs, speak with the licensed agents at Magellan Healthcare. Our team will match you with the coverage that is just right for you.
