Per the system that is currently in place, anyone who is unable to perform two or more activities of daily living for 90 or more days, or has a significant cognitive impairment, is eligible to receive long-term care. However, meeting the requirements is often the least of a patient’s concerns.
While the average cost of receiving long-term care can vary, rates are often too high for a patient to pay on their own. For instance, a stay at a nursing home can cost between $6,844 – $7,698 per month, a stay at an assisted living facility can cost between $3,628 per month, and in-home assistance can cost $20 per hour. Long-term care is expensive, which is why long-term care insurance is used to pay for these expenses.
However, before choosing a long-term care insurance policy, it is important to become familiar with some of the terms that are commonly placed in policy outlines.
- Activities of Daily Living – ADLs are everyday activities that individuals can perform without assistance such as bathing, dressing, eating, toileting, taking medications, and more. Most long-term care insurance policies will pay benefits when an individual is unable to perform two or more of these activities.
- Assisted Living Facility – A residential facility where a group of individuals who need unable to perform any ADLs.
- Long-Term Care Insurance – This is private insurance that pays for the cost of long-term care services.
- Medicaid – This is a joint federal and states public health care assistance program that pays for long-term care costs for low-income individuals and individual who have high medical care costs relative to their income and assets.
- Spend Down – Individuals who need long-term care are required to spend most of their income and assets before they can become financially qualified for Medicaid long-term care benefits.assistance with ADLs resides and are given personalized care. This type of facility can range from a small home to a large apartment complex. Health and medical care are offered at these facilities, and individuals remain relatively independent.
- Nursing Home – This is like an assisted living facility except the health and medical care is much more extensive. Individuals in a nursing home typically have chronic illnesses or are
- Partnership Long-Term Care Insurance Policy – Under normal circumstances, individuals would have to deplete most their income and assets to qualify for Medicaid long-term care coverage. A Partnership policy allows individuals to keep some of their assets when they apply for Medicaid to pay for long-term care costs.