Myths and Realities about Long Term Care

A definition of Long Term Care

Long-term care does not refer to ongoing medical treatment at home or in a hospital, but rather refers to ongoing assistance with daily functional tasks, such as bathing, dressing, and eating.

• Myth: Most long-term care is received in a nursing home.

• Reality: Most long-term care is received in one’s own home and this trend is expected to grow.

• Myth: Medicare, health insurance, and disability insurance pay for long-term care expenses.

• Reality: Long-term care insurance is the only form of private insurance coverage to pay for ongoing long-term care expenses.
   

NOTE - Health insurance, disability insurance, or Medicare will not pay for expenses associated with long-term care.

• Myth: I can immediately qualify for Medicaid to pay for my long-term care by transferring assets to a family member.

• Reality: When a person applies for Medicaid coverage to pay for their long-term care, the state will conduct a financial review, or “look-back,” of financial records for the five years prior to application to see if assets were transferred for less than fair-market value. If they were, the application can be denied.

• Myth: Family history, income, and age are all primary factors when calculating long-term care insurance.

• Reality: You must be insurable, but age is a primary factor in calculating long-term care insurance premiums.  In general, the younger you are, the lower your premiums.