Although long-term care is an easy subject to avoid, it ends up affecting most of us, if not all of us. There are many benefits for those that take time to consider this issue ahead of time. Often a simple option is working with your financial advisor to purchase some long-term care insurance. However, too many of us do nothing and before we know exactly what is happening, we are paying thousands of dollars each month just to accomplish the things we used to be able to do on our own. Most of the time many of the biggest issues with long-term care can be planned for if we take a moment to consider this difficult issue ahead of time.
First a bit of facts: Utah is expected to have almost double the number residents over the age of 85 by 2030. Of this higher age group almost 95% are predicted to require long-term care. Generally, most people prefer to receive long term care at home and hope that this is all it ever comes to. However, many people are simply not able to do this because the cost of our care is simply too difficult for our loved ones to handle. This means if our loved ones are not able to provide the care we need; we pay for it ourselves or look for help elsewhere.
Long-term care facilities, and even long-term care assistance at home, can be expensive ranging from $25 per hour to $395 per day. These costs can quickly exceed what we have saved and can even lead to costs exceeding over $120k per year. These costs often even exceed the benefits of our long-term care insurance policies.
Let us consider the a few ways to pay for long-term care: (1) long-term care insurance; (2) VA benefits; (3) pay privately; and (4) Medicaid for long-term care. Of these four options, the most dominant payor for long-term care is Medicaid.
Although long-term care insurance often seems the best way to account for this issue, it is typically not sufficient to pay for the full cost or the cost of the premiums increase so much that the policies lapse and are cancelled. This is one of the reasons Medicaid becomes such a big issue for our elder community.
If you know of anyone that has used Medicaid for long-term care, you probably heard things like “spend down” or you must wait 5 years. You might be surprised to learn that spending all your assets or waiting 5 years may not be your only option. This is where we come in.
As attorneys, we have specialized in Medicaid law and can help you to know what options you have when it comes to paying for long-term care. We can help whether you are looking for help right now, or if you are just wanting to consider Medicaid as a possibility in the future. Many of our clients prefer to account for the eventuality of needing long term care assistance as part of their general estate plan. These clients that plan, often have more options than those that do not. Regardless of whether you are in a care home now, or may end up in one later, we can help.
Feel free to schedule a complimentary meeting where we can personally discuss with you your options.