Warning: There is “One” Huge Expense That "2 out of 3 People" Will Have to Face in Their Lifetime That's Not Covered

If you are new to Medicare, or will be in the future, It is vitally important that you understand how this program works and what the costs will be. Many people believe that Medicare will cost them nothing when in fact, it is only Part A of Medicare that can potentially be free. In order to qualify for “Free Part A” either you or your spouse would have had to work at least 40 quarters in your lifetime. Part A covers hospital stays and care while in the hospital and in most cases will cost nothing.

Medicare Part B is not free and covers outpatient care like doctor's office visits, preventive care, scans and tests. Most people pay a premium of $164.90 per month in 2023. It's important to sign up when you become eligible for Medicare to avoid late enrollment penalties. Not only is Medicare not free but, out of pocket healthcare costs when retired could end up being much more expensive than most think due to the number of services Medicare does not cover. For example, dental coverage, vision care or hearing aids are not covered.

But, there is one major expense that many will have to face that you have to look out for and, that would be "Long-Term Care".  

​What does Long-Term Care cost?

​Most people believe that Medicare is going to cover the cost for facility care. This would be both assisted living & nursing homes but, Medicare does not cover these costs. Medicare will pay for a limited stay as long as you meet certain requirements for skilled care at a nursing facility. First you will have to spend at least 3 days in the hospital and, then upon doctor referral be transferred to a care facility. But, your medical condition will be expected to improve and is related to a medical issue or injury.

Medicare also will not pay for what’s called custodial care or the help you would need to function. Many people wind up in a skilled nursing care facility or assisted living not because they are injured or ill but, because their bodies no longer function the way it used to and, their mobility is very limited. This is where Long Term Care comes in but, it is an expense most generally will have to face without any help from Medicare.

These are extremely expensive with the average annual cost for an assisted living facility being $54,000 according to Genworth’s 2020 Cost of Care Survey. What if you have to go to a nursing home? The average national cost of care for a shared room is $94,000 per year with a private room costing $108,000 per year. Plus, these costs get more expensive each year.

View todays costs and future costs for our area below.

Long Term Care Costs Calculator

Most people will try to stay at home as long as they can and, this should be the goal. Home health aides are needed at this time which Medicare does pay for if they are needed for custodial care. The average price for this care is $54,000 per year and, this is not someone being with you 24 hours per day 7 days per week. This cost is usually for Monday – Friday for 8 hours each day.

Planning for Long-Term Care

This is why it is so crucial that you plan and prepare for this enormous expense. The best & cheapest time to prepare is before you are on Medicare, when your are in your 50’s to around age 60.

What are the statistics for Long-Term Care:

• Someone turning 65 today has almost a 70% chance of needing some type of Long-Term Care services and support in their remaining years.
• Women need care longer (3.7 years) compared to men (2.2 years).
• The average Long-Term Care claim is for 2.7 years with the average claim amount being around $300,000. This is an enormous amount of money that most people do not have and why it is vitally important to prepare ahead of time.
• One-third of today's 65 year-olds may never need long-term care support, but 20% of these 65 year-olds will need it for longer than 5 years.

Just the thought of having to pay for long-term care is enough to send stress levels through the roof. This is why it is imperative that you come up with a plan now addressing this need. As mentioned earlier, the best time is to look into purchasing Long Term Care coverage when you are in your 50’s. The cost for this coverage is much less at this age versus if you wait until you are in your 60’s or 70’s.

Basically there are 4 ways to pay for Long-Term Care

1. Self-Fund (most cannot afford this)
2. Depend on family and friends to provide this care
3. Apply for Medicaid (which has very strict guidelines to get accepted)
4. Purchase Long Term Care coverage

Our office offers both "Traditional Long-Term Care" plans along with "Hybrid Long Term Care" plans. To discuss the different options that are available and which may be the best for your situation, please contact our office for a free consultation. We look forward to helping you!
https://www.shanleyinsuranceagency.com/free-consultation.html