Long-term care planning
When it comes to long-term care planning, understanding the basics is a great place to start.
The power of a plan
Most people don’t know what long-term care is until they or someone they love needs it. This was true for Lynn White, President & CEO of CareScout Insurance. Read more about her family’s early introduction to caregiving and how it motivated her to make a long-term care plan.
What is long-term care?
Long-term care is the care you may need if you are unable to perform activities of daily living on your own. That means things like eating, bathing, dressing, transferring, and using the bathroom.
You may need long-term care as a result of advanced aging, accidents, illness, stroke, cognitive issues (such as dementia and Alzheimer’s Disease), and other chronic conditions
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Where can you receive long-term care?
While the majority of people want to receive long-term care services in their home, that option isn’t always right depending on your circumstances. It’s important to familiarize yourself now with the choices available so you can live life on your terms later. Some of the places you could receive care include in your home or in a community or facility setting.
Types of care settings
In-Home care options
Home care
Home care generally refers to non-medical care to assist persons with activities of daily living, such as bathing and dressing, or to supervise persons with a severe cognitive impairment. It can also include activities incidental to that care, such as assistance with cooking and light household chores.
Home health care
Home health care often refers to skilled-care provided by a licensed nurse, rehabilitation, or physical, occupational, or speech therapist in the comfort of your home.
Community options
Adult day care
Adult day care provides social and support services in a community-based, protective setting. Older adults can join in planned activities with professional caregivers looking after them. Some programs also include: personal care, transportation, medical management, and meals.
Facility options
Assisted living ¹
Assisted living communities offer residential arrangements providing personal care and health services. The level of care is not as extensive as a nursing home.
Nursing home
Nursing home provide a higher level of supervision and care than assisted living facilities. They offer older adults personal care assistance, room and board, supervision, medication, therapies and rehabilitation, and on-site nursing care 24 hours a day.
How much does long-term care cost?
The answer is – it varies. The cost of care depends on the care setting, geographic location of care, and level of care required, among other things. Check out our online Cost of Care tool to calculate the cost of long-term care in your area.
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How to pay for long-term care
There’s a common misconception that health insurance or public programs like Medicare and Medicaid cover long-term care expenses. In reality, Medicare generally does not cover long-term care needs, except in limited instances. For example, Medicare does provide some coverage for a skilled nursing care facility following a hospital stay and limited coverage for skilled health care when homebound. Medicaid can provide coverage for long-term care, but to qualify, you will have to meet income and asset restrictions.
Understanding Medicare & Medicaid
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In addition to public programs, funding options for long-term care can include:
Self-funding
For some, self-funding feels like the right option. But cash may not keep up with inflation or rising care costs. In some cases, investments may not be tax-efficient and could be impacted by market volatility.
Family & friends
Asking loved ones for help with long-term care can be a bonding experience for all involved, but it can also take a toll physically, emotionally, and financially. Over time, the stress and expense that comes along with it can have wide-reaching effects on everyone in the care circle.
Financial products
There are several types of financial products that you can purchase to help reimburse policyholders for long-term care-related expenses, including long-term care insurance and annuities. In some cases, you will have to meet certain qualifications before purchasing.
CareScout funding solutions - coming soon!
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1 Referred to as residential care facility in California