Long-Term Care Insurance

Going without long-term care insurance might mean relying on government programs, burning through your retirement savings — or possibly leaving your family or children with medical and nursing home bills. Why? Many people mistakenly believe their care needs will be covered by the government or other insurance policies. However, government programs such as Medicare and Medicaid aren't designed to cover care costs over long periods of time. In addition, long-term care assistance isn't typically paid for by health or disability insurance.

• With Medicare, patients receive long-term care support only if they need skilled services or rehabilitative care, according to the U.S. Department of Health and Human Services. This includes nursing homes for a maximum of 100 days and home-based care for a short period of time for those receiving skilled home-health services. People must pay for long-term care services that are not covered by a public or private insurance program.

• Medicaid is primarily based on income, according to Medicaid.gov. Individual states first determine if someone is eligible for Medicaid, then decide whether that person qualifies for long-term care services. While thresholds vary by state, Medicaid recipients typically must spend most of their personal assets to qualify.

• Many people think they can rely on employer-sponsored and private health insurance for care. However, the majority do not significantly cover long-term care needs. Most cover only the same kinds of limited services as Medicare. If long-term care is covered, it is typically only skilled, medically necessary care that lasts for a short period of time.

• Potentially, without long-term care insurance, you may have to rely on personal assets and family for care. Personal income and assets are frequently used to cover care costs, according to the AARP. And often, family members must assume the burden of care.