Long-Term Care (General)

What is Long-Term Care?

Long-term care refers to a variety of services and support designed to meet health or personal care needs over an extended period. Unlike short-term medical care, long-term care is not primarily focused on curing an illness. Instead, it helps individuals live as independently and safely as possible when they can no longer perform everyday activities on their own.

These activities, known as Activities of Daily Living (ADLs), include:

• Bathing
• Dressing
• Using the toilet
• Transferring (to or from bed or chair)
• Caring for incontinence
• Eating

Long-term care may also include assistance with Instrumental Activities of Daily Living (IADLs) such as housework, managing money, taking medication, preparing meals, and attending appointments.

This care can be provided in various settings, including:

• In-home care
• Adult day care centers
• Assisted living facilities
• Nursing homes
• Continuing care retirement communities

The need for long-term care can arise from chronic illness, disability, or cognitive impairments like Alzheimer's disease. It's important to note that long-term care needs can develop gradually as you age or suddenly following a health crisis.

The Cost of Long-Term Care

One of the most significant challenges in long-term care planning is addressing the potentially high costs involved. Many people underestimate both the likelihood of needing long-term care and its financial impact.

According to recent studies, about 70% of people over 65 will require some form of long-term care services during their lifetime. The costs associated with this care can be substantial. According to the 2024 Genworth Cost of Care Survey, the following costs for long-term care:

• Home Health Aide Services: The median cost is approximately $5,200 per month (for 40 hours of care per work) or $62,400 annually.
• Assisted Living Facility: The median cost for a private, one-bedroom unit is about $6,200per month or $74,500 per year.
• Nursing Home Care: The median cost for a semi-private room is around $9,536 per month or $114,432 per year. For a private room, this increases to $9,809 per month or $117,708 annually.

These costs can vary significantly depending on your location, the level of care needed, and the specific services provided. It's also important to note that these expenses tend to increase over time due to inflation and rising healthcare costs.

Medicare is Does Not Cover Long-Term Care Costs

Many people are surprised to learn that Medicare does not cover most long-term care expenses. In fact, our typical health insurance programs (i.e. Tricare, Anthem, Humana, etc.) are acute care policies, also known as short-term care policies or recovery care insurance and are designed to provide coverage for a limited period of care. These policies are intended to help cover the costs of care needed after an acute medical event, such as a stroke, heart attack, or injury that requires a short period of intensive care or rehabilitation.

While acute care policies can be valuable in certain situations, it's crucial to understand their limitations. These policies are not designed to cover extended periods of care that may be needed due to chronic conditions or cognitive decline. They are best suited for individuals who anticipate needing assistance for a short period following a specific medical event.

Options are Available

Options are available to help alleviate the financial impact of long-term care. This may include Long-Term Care Insurance, Financial Planning, Medicaid Planning, Veterans Benefits or other Asset Protection Strategies.

This is why early and comprehensive long-term care planning is crucial. Don't wait until a crisis occurs to start planning for long-term care. By taking proactive steps now, you can maintain control over your future care, protect your assets, and alleviate the potential burden on your loved ones.

Secure your future with East Coast Elder Law – where expertise meets compassion in long-term care planning.