Learn more about reasons to plan now; plus, explore long-term care services and payment strategies at the U.S. Department of Health and Human Services’ Long-Term Care Clearinghouse: www.longtermcare.gov.

Long-term care doesn’t stop at the nursing home door.  With flexible financing plans in place, families can more easily pay for professional care in an individual’s home; in community settings such as adult day care centers; and in a variety of residential settings such as nursing homes, assisted living facilities, and continuing care retirement communities.

Consumers pay 18.1% of U.S. long-term care costs out of their own pockets, according to a 2005 study by the Centers for Medicare and Medicaid (CMS).  Medicaid pays 48.9%, Medicare pays 20.4% in very limited circumstances, private insurance pays 7.2%, and other methods cover the remaining 5.3%.  Advance preparation can reduce the impact of large, potentially sudden expenses.

Medicare’s Skilled Nursing Facility benefit helps to pay for no more than 100 days of care, with the average being 21 days after a hospitalization.  Patients must meet strict guidelines as determined by their physicians.  Medicaid has tightly regulated financial eligibility criteria, and individuals should be aware of how Medicaid “look-back” rules and Estate Recovery may affect them.

Definitions:

 

Look-back Period:  “Five-year period prior to a person's application for Medicaid payment of long-term care services. The Medicaid agency determines if any transfers of assets have taken place during that period that would disqualify the applicant from receiving Medicaid benefits for a period of time called the penalty period.”

Estate Recovery:  “The process by which Medicaid recovers an amount of money from the estate of a person who received Medicaid. The amount Medicaid recovers cannot be greater than the amount it spent on the person's medical care.”

From The National Clearinghouse on Long-Term Care

www.longtermcare.gov

The statewide annual average for a private room is currently $55,616 in a nursing home and $28,080 in an assisted living facility (as compared to $60,896 and $29,940 in Atlanta).  National figures are substantially higher.  Home health aides cost an average of $42 per hour statewide and $43 per hour in Metro Atlanta.                   Source: Genworth Financial Cost of Care Survey, March 2008

Early planners have more choices.

Medicare and Medicaid dollars are stretched to the limit

Smart planning can help protect your wallet.

Georgia’s long-term care costs are rising.

Contact the Georgia Lifelong Planning Program today at 1-866-55-AGING.

 

The Georgia Lifelong Planning Program is sponsored by the Georgia Department of Human Resources Division of Aging Services in collaboration with Georgia’s Area Agencies on Aging.