As Americans live longer than ever before, planning for long-term care (LTC) is no longer optional—it’s essential. Yet, many people still mistakenly believe that Medicare or Medicaid will be there to cover the costs when the time comes.
What Is Long-Term Care?
Long-term care includes more than nursing home stays—it also involves help with daily activities like bathing, dressing, cooking, and medication management. These services may be provided at home, in assisted living, or in a skilled nursing facility. While most people prefer to remain at home, LTC services—whether paid or provided by family—are often necessary for maintaining independence and safety.
The Medicare Myth
A recent survey found that 58% of Americans mistakenly believe Medicare will cover their long-term care expenses. In reality, Medicare only covers short-term, skilled care following a hospital stay, and only up to 100 days. After just 20 days, co-pays apply—and it won’t pay a cent toward non-skilled, custodial care like help with dressing or bathing.
Medicaid: A Safety Net with Strings
While Medicaid can cover long-term care, it’s not easily accessible. To qualify, you must spend down nearly all of your assets—often to poverty levels. Many people are surprised to learn that Medicaid planning can take months or even years and involves complex eligibility rules.
To make matters worse, future cuts to Medicaid funding could reduce access or quality of care. If you’re relying on Medicaid to pay for long-term care in a nursing home, you may find fewer beds available or facilities operating with reduced staff and services.
Long-Term Care Insurance: Often Overlooked, Often Overestimated
Only about 3 to 4% of Americans over 50 have long-term care insurance (LTCI), often due to a perception that it’s too expensive. However, many people overestimate the cost. Starting a policy between ages 50 and 55 is typically the most cost-effective window, and newer hybrid products—like life insurance with LTC riders—offer even more flexibility.
Aging in Place Isn’t Free
While most people (77%) prefer to receive care at home, home safety and accessibility are frequently overlooked. Home modifications like grab bars, ramps, and walk-in showers can be expensive if not planned for. Worse, many aging adults stay in homes that aren’t suitable for their future needs, which can increase fall risk and hospitalizations.
Proactive Planning Makes All the Difference
Here are some essential strategies to consider:
- Don’t assume Medicare or Medicaid will cover your care. Educate yourself now.
- Explore long-term care insurance early while premiums are still manageable.
- Consider hybrid insurance products that combine LTC coverage with life insurance.
- Remodel your home now with aging in mind—before a crisis hits.
- Consult with an Elder Law attorney to create a long-term care and estate plan that protects your assets while meeting your needs.
- Review your will and powers of attorney regularly to ensure they reflect your current wishes and include key provisions for incapacity planning.
Start Planning Today—Before You Need It
Long-term care is a likely reality for many of us, but how we prepare for it can make all the difference. Whether you’re 55 or 85, the best time to plan is now, while you still have time to make informed, cost-effective decisions.
