Planning for the future is essential in order to cover health insurance costs should an individual need nursing home or assisted living care. Many Americans fear being in a nursing home, as they do not wish to lose their personal freedom. Additionally, they worry if they can afford the nursing home bill, which may cost up to $150,000 a year.
Often, people pay for nursing care until their money runs out and they are able to qualify for Medicaid. This is a situation that needs to be planned in advance as best as possible, with a lawyer extremely familiar with elder law and all the programs a senior may access. Planning in advance will help to protect a senior’s estate, for themselves, their spouse or their children.
One of the ways to plan for the future is to ensure long-term care health insurance is purchased in advance, and then have that purchase dovetail with benefits allowable under either Medicare or Medicaid. Medicaid is the only health insurance for long-term care. Medicaid is not Medicare.
Medicaid is a form of welfare. To access it, the applicant must be unable to afford anything else and have no assets to speak of. In other words, they must be completely broke. Medicare is offered to all retirees who get Social Security benefits, and Medicare is their health insurance, meaning Medicare is an entitlement program.