Probably all of us assume that our present health insurance covers long-term care. Below we separate the myths from the facts.
Long-term care is the assistance people need to perform normal daily activities once they are unable to do these things for themselves. Typically, the normal aging process creates long-term care needs. But they also arise from a variety of other problems brought on by injuries, illnesses and cognitive impairment.
Myth: My health insurance probably covers me for long-term care.
Fact: Most people incorrectly believe that they have coverage for long-term care expenses.
Myth: My health or disability insurance will cover my long-term care.
Fact: Many people incorrectly believe "other health insurance" will pay for their long-term care, such as your HMO or your long-term disability insurance. If you are in doubt about what your current health insurance covers, please talk with your insurance agent. You may need to purchase additional long-term care insurance.
Myth: Medicare or Medicaid will cover my long-term care.
Fact: It is true that Medicare pays for some long-term care. But this kind of care is for skilled help, such as nursing, and not custodial care which is non-skilled care that helps you with daily activities like walking, eating and so on. You can receive some Medicare assistance if you are eligible. The best place to find this information is to go to the medicare.gov website. Medicaid, a State and Federal Government program, also assists with certain health services for seniors with low incomes. But the assistance varies from state to state. So make sure you check with Medicaid in your state.
Myth: Long-term care is only for the elderly.
Fact: Let’s stop to think about that. The need for long-term care can arise at any time in a person's life. Do you know a younger person who has been disabled for any reason and who requires long-term care? Christopher Reeves is a good example of someone who was paralyzed in the prime of his life by a horse riding accident.
Myth: My family and I probably won't need long-term care.
Fact: According to a recent report on the Medicare website, a 65-year-old today has a 40 percent chance of entering a nursing home. Of that number, 10 percent will stay there for more than 5 years. Consider also that people are living longer on average, increasing the likelihood of needing long-term care.
Myth: I won't need long-term care insurance because my family will be able to care for me.
Fact: While families do and will continue to provide care, it is not possible to know for certain whether your family will be available and able to care for you when the time comes. It's possible that the type of care you might need will require professional help or a stay in a nursing home or assisted living facility. For many married couples, because the wife often out-lives her husband, she is less likely to have someone nearby who can provide care for her. Furthermore, you may be putting a severe financial and emotional burden on your loved ones. It is important to decide how you want to be cared for and ensure that you are protecting your family. The fact that family and friends may help supplement care does not have any bearing on the cost of coverage.
Myth: My family can't afford long-term care insurance.
Fact: The question you need to ask yourself is “Can they afford NOT to have long-term health care?” There are three things you can do. First, create a financial or retirement plan that is right for you. Second, work with your health insurance agent to design coverage that meets both your care needs and your pocketbook. And third, purchase the insurance now while you are younger. Premiums are more affordable the younger you are at time of purchase. Today's long-term care insurance offers a lot of flexibility, and there are a variety of plans available to suit your needs and budget.
Doug Gulleson is a partner of . Good Neighbor Insurance represents 10 international health insurance companies and provides international health and travel insurance for every country in the world.
