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The cost of LTC services varies
with the type and duration of care, the provider selected, the setting, and geographical location within the county where
care is provided. According to the Met-Life Mature Market Institute, the 2008 national average home care
hourly rate is $20/hour for home health aides and $18/hour for homemaker companions.(American Association for
Long-term Care Insurance, Sourcebook 2009.)
Professional care from nurses or physical
therapists are higher, ranging between $25-$35/hour. Many home care agencies require 3-hour minimums. Adult day-care averages
$64/day. While many are higher, national assisted living costs average $3,030/month or $36,360/year. Nursing home care can
be $70,000-$80,000/year depending on accommodations and location. Consider the
following conservative estimates of average lengths of stay in each area (Met-Life Mature Market Institute
data from American Association for Long-term Care Insurance, Sourcebook 2009):
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If Three Years
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Home Care @$20/hr for 3hrs 2 days/week |
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$17,280
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Assisted Living @ $3,030/month |
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($81,810)
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Nursing Home @ $70,000/year
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$210,000
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$ 233,330
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$309,090
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Care in the various settings
may be longer or shorter than the average and not necessarily cumulative. While individuals may go from the hospital direct
to a nursing home, it is more likely for them to start out with home care and later move to an assisted living facility and/or
nursing home. If all venues are used, an individual’s total LTC expenses can easily surpass $300,000. For a couple,
this amount can double. For more information about the cost of care in your local area check out this informative
map:
TO VIEW THE COST OF CARE MAP CLICK HERE
DOES
REGULAR HEALTH INSURANCE PAY FOR LONG-TERM CARE?
Contrary
to what you may think LTC services are not typically covered by any other type of insurance, including health and long-term
disability insurance. Only LTCi policies cover the day-to-day assistance you need when you have a chronic condition, disability,
or cognitive impairment.
Regarding government
programs, Medicare (health insurance for those 65+ and certain younger disabled persons) pays only for brief acute illnesses
requiring skilled professionals or rehabilitation. Medicare does not pay for chronic conditions or non-skilled custodial care
which comprises most LTC services. Medicaid (welfare) will only pay for a skilled level of care (usually in a nursing home),
once assets are spent-down to poverty levels and other criteria are met. Medicaid does not pay for custodial care, adult-day
care, or assisted living facilities. Counting
on the government for LTC is no longer a viable solution for anyone who wants choice and control. Not only have the rules
and regulations for both Medicare and Medicaid become more stringent, but reimbursement amounts have not kept pace with the
cost of care. In many ways, Federal and State governments are sending a clear message to Middle America that we must take
responsibility for our own LTC.
For more information
on the Federal and State Government's position on LTCi, Contact Us
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