Transcript Long Term Care Insurance - Snowden & Associates, Inc.

Long Term Care Insurance
CAN YOUR FINANCIAL PLANNING BE
RESOLVED WITHOUT PLANNING FOR THIS
SIGNIFICANT EXPOSURE?
The Basics
The need for Long Term Care affects the entire family. It is a critical
social issue as only 7% of our population has this coverage and 70% of
our population is going to need some form of care at some point in their
lives.
The need for long term care may happen to anyone…your spouse, a
parent, a sibling. It can result from being chronically ill, from a severe
cognitive impairment or something as unexpected as an accident or
injury.
Many important questions arise:
Who will take care of me?
Will I be able to stay at home?
What pot of money do I take from to pay for care?
Cost of Care
 Some average costs for long-term care in the United






States (in 2013) were:
$205 per day or $6,235 per month for a semi-private room
in a nursing home
$229 per day or $6,965 per month for a private room in a
nursing home
$3,293 per month for care in an assisted living facility
(for a one-bedroom unit)
$21 per hour for a home health aide
$19 per hour for homemaker services
$67 per day for services in an adult day health care
center
**Consumer Reports
How much care will you need
 The duration and level of long-term care will vary from




person to person and often change over time. Here are
some statistics (all are “on average”) you should consider:
Someone turning age 65 today has almost a 70% chance of
needing some type of long-term care services and supports in
their remaining years
Women need care longer (3.7 years) than men (2.2 years)
One-third of today’s 65 year-olds may never need longterm care support, but 20 percent will need it for longer than
5 years
Those with congnitive issues typically have much longer
periods of care.
Types of long-term care services
Type of Care
Nursing Home
Assisted Living
Home Health Care
Adult Day Care
Who Pays for Long Term Care - Medicare
 Only pays for long-term care if you require skilled services or
rehabilitative care:
 In a nursing home for a maximum of 100 days, however,
the average Medicare covered stay is much shorter (22
days).
 At home if you are also receiving skilled home health or
other skilled in-home services. Generally, long-term care
services are provided for up to 21 dyas.
 Does not pay for non-skilled assistance with Activities of Daily Living
(ADL), which make up the majority of long-term care services
 You will have to pay for long-term care services that are not covered by
a public or private insurance program
Who Pays for Long Term Care - Medicaid
 Does pay for the largest share of long-term
care services, but to qualify, your income &
assets must be below a certain level and you
must meet minimum state eligibility
requirements
 Such requirements are based on the amount of
assistance you need with ADL
 Other federal programs such as the Older
Americans Act and the Department of Veterans
Affairs pay for long-term care services, but only for
specific populations and in certain circumstances
Who Pays for Long Term Care – Health Insurance
 Most employer-sponsored or private health
insurance, including health insurance plans, cover
only the same kinds of limited services as
Medicare
 If they do cover long-term care, it is typically
only for skilled, short-term, medically
necessary care
Sample Long Term Care Quote
Sample Long Term Care Quote continued
Questions?
Questions?
Thank you for your time…
Contact Information
Scott Snowden
Snowden & Associates, Inc.
(502) 339-7980
[email protected]