Paying for Long Term Health Care

Average costs of long term health care services provided by a nursing facility can exceed $50,000 per year, or more than $4,000 per month. Costs for residing in an assisted living facility average $24,000 annually, and can run higher in urban settings.

Consequently, paying for long term health care calls for some financial planning. This page is designed to give you a better idea of your options and the financial programs that are available to you.

Medicare

Medicare is a government health insurance program for the elderly and disabled. Medicare covers acute medical care and very limited nursing home care as long as it's linked to a hospital stay. Federal Medicare rules allow long term health care coverage under certain condtitions. (Read more on Medicare and Nursing Home coverage.)

Some services that Medicare will pay for includes: doctor's services, outpatient hospital treatment, and some in-home care. It also covers some care in a skilled nursing facility, but not all.

Medicaid

To become eligible for Medicaid, a married couple must exhaust their life savings. Only after the majority of your assets have been depleted will Medicare start to pay for your long term health care expenses. Spouses are entitled to keep a minimum monthly allowance and a minimum set of assets up to a capped amount.

Long Term Care Health Insurance

Long Term Care Health Insurance has become more popular as the costs of nursing homes and assisted living homes become more unaffordable. LTC Insurance usually provides benefits to cover a broad range of services including nursing home care, assisted living facilities and adult day care.

Paying with Cash

If you financially well-off, paying for long term health care with cash my be a good option for you. A stay in an assisted living facility or care in your own home can range in price from $50,000-$100,000 a year.