Long-term care insurance Long-term care insurance pays for several types of care, including: Care in a nursing home or assisted living center. Nursing care and other health services at your home. Nursing, therapeutic care, social and educational activities, and supervision at an adult day care facility. Other services. Some policies pay for hospice care, respite care (care to allow time off for family members who are caregivers), care after a hospital stay, help with household chores, or caregiver training for family members.
The cost of long-term care is based on the type of care you need, how long you need it, where you get it, and what type of medical professional provides it.
There are several ways to pay for long-term care:
Medicaid is a state and federal assistance program that pays for health care and some long-term care expenses for people with low incomes.
To get Medicaid, you must meet the Texas income and asset requirements. Assets are different than income. They are things you own – like your house, cars, and stocks – that you could turn into cash. Many people pay for long-term care out of pocket until they “spend down” their assets enough to be eligible for Medicaid.
Medicare is a federal program that pays for health care for people over age 65 and for people under age 65 with disabilities. If you’re eligible, Medicare will pay some long-term care costs, such as nursing care stays, hospice, and physical therapy. It will cover up to 100 days of care in a nursing home after a hospital stay. Medicare pays the full cost of care for the first 20 days. For days 21 to 100, you pay a $140 a day copayment.
Life insurance or annuities can pay for long-term care in two ways:
Long-term care insurance covers a range of services that regular health insurance typically doesn’t include. Here’s what it covers:
Long-term care policies don’t cover some conditions, either at all or for a time. Policies usually don’t cover: