Costs rising out of long term care services are paid by Long Term Care Insurance. Help needed to carry out daily activities like eating, bathing, dressing and using the bathroom etc. when you have a physical disability or cognitive impairment such as dementia caused by Alzheimer’s disease is called Long Term Care. Traditional health insurance, Medicare or Medicaid do not pay for such care. This kind of care is not received in a hospital nor is it intended to cure you. You may need this kind of care for the rest of your life and can receive it in your own home, a nursing home or assisted living facilities.
Health services for those who are 65 or older is provided by Medicare which is a Federal Health Insurance program. Those who are under 65 but have certain disabilities, and those dealing with end stage renal disease requiring dialysis or a transplant are also covered by Medicare. Those suffering from ALS or Lou Gehrig’s disease are also eligible for Medicare. Only specific short term skilled care such as inpatient hospital stays, inpatient skilled nursing facility stays, hospice care and home health care are paid by Medicare. It also pays for some out patient medical services such as doctor visits, diagnostic tests, preventive care and prescription drugs. For a limited time only specialized care in a hospital is provided by Medicare.
A state based program supplemented by Federal Funds is called Medicaid. Medi-Cal is the Medicaid Program in California. According to your state’s guidelines Medicaid aims to provide health care services to people with low-income and asset levels. You must meet your state’s poverty criteria in order to be eligible for Medicaid. It generally means you need to expend all but $2000 of your assets. A welfare program kicking in only after a person’s assets are gone is Medicaid!
Eligible Medicare recipients can buy a form of private supplemental health insurance policy called Medigap which increases the amount of health insurance. Humana, Blue Cross and Blue Shield etc. are private health insurance companies who provide Medigap insurance. The 12 standardized Medigap Policies have the same benefits regardless of which private company sells it to you. Some or all of Medicare’s coinsurance and deductibles can be paid by Medigap Policies. Some costs such as emergency medical care in foreign countries which are not covered by Medicare are covered by Medigap policies.
In summary, Long Term Care costs are covered only by Long Term Care Insurance. To protect your assets and to safe guard yourself and your family in the event you need long term care, seek Long Term Care Insurance.
Maria Smith often writes about long term care insurance.
Tags: Health, Insurance, long term care, long term care health insurance, long term care insurance, retirement
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