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Startling Facts About Long-Term Care

Did you know that …

At least 70% of people over 65 will need long-term care services and support at some point in their lives.
(Source: 2015 Medicare & You, Centers for Medicare & Medicaid Services)

About 68% of nursing home residents and 72% of assisted living residents are women.
(Source: Long-Term Care Services in the United States: 2013 Overview, National Center for Health Statistics)

The national median daily rate in 2014 for a private room in a nursing home was $240, an increase of 4.35% from 2013.
(Source: Genworth 2014 Cost of Care Survey, March 2014)

The average length of a nursing home stay is 835 days—or more than two years. But I had a several relatives, both with Alzhiemers, who were in homes for five years.
(Source: Centers for Disease Control and Prevention, Nursing Home Care FastStats, last updated May 2014)

At a median daily rate of $240, an average nursing home stay of 835 days currently costs over $200,000, making it virtually unaffordable for many Americans. (The average hotel room is just $121/day!)

Medicare does not pay for long-term care services, as explained by the Social Security Administration: “Social Security pays retirement, disability, family and survivors benefits. Medicare, a separate program run by the Centers for Medicare & Medicaid Services, helps pay for inpatient hospital care, nursing care, doctors’ fees, drugs, and other medical services and supplies to people age 65 and older, as well as to people who have been receiving Social Security disability benefits for two years or more. Medicare does not pay for long-term care, so you may want to consider options for private insurance (emphasis added).”

Without proper planning, a serious accident or illness could rob you of your financial independence. Whether purchased for yourself, your spouse or for an aging parent, long-term care insurance can help protect assets accumulated over a lifetime from the ravages of long-term care costs.

  1. Raw statistics may briefly shock but they rarely convince because we’ve all come to doubt them.

    By comparison: 80-90% in nursing homes are on lireral welfare (Medicaid) Happily, with just a little foresight, we can have care at home, where we prefer it. That’s best paid for by LTC insurance, unless family has money to burn !

    1. Interested in long term care policies that offer home & institution care benefits as I reviewed eight or so years ago with out a gate keeper ; benefits paid to insured to decide who provides care!

      1. Hi John,

        What you are describing are indemnity based LTC benefits, where you receive whatever you benefit amount is monthly to allocate how you see fit, including banking any extra dollars you didn’t spend that month.

        There are only a handful of carriers that offer indemnity based, rather than a reimbursement based benefit where you incur expenses and then submit them to the insurance carrier for approval and reimbursement.

        I’d be happy to share more with you. I can be contacted at DCPhillips@Comerica.com or 313-222-3028.

        Best Regards,
        David C. Phillips
        Vice President and Sr. Advanced Plans Advisor
        Comerica Wealth Management

  2. And also, long term care recipients can pay LTCi via their life insurance policy. Through, combination care Products, accelerated death benefits (ADBs), life settlements and viatical settlements; consumers will never feel reluctant to purchase LTC plans. But of course, it would aid them better if they will compare this options based suitably on their needs and circumstances.

    Judy M. Williams
    Irving Road Woodsfield, OH 43793
    http://longtermcareadvocates.blogspot.com/

  3. Why would anyone want to burn their family legacy at such a rate when they can buy insurance for pennies on the dollar?

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