Long-term care insurance is expensive; long-term care is even more so. Still, as New Yorkers age, having access to this service plays a crucial role in their retirement plans. Without it, they could lose their entire retirement savings in one expensive procedure and never recover financially. Chronic, long-term illness could also prove more than their monthly finances can support.
In spite of its cost, life insurance is one way that many people plan for the cost of long-term care. CNN estimates that this can cost as much as $2,500 or more each year. Over the past decade, many insurance companies have also increased their premiums. If someone plans to downsize your budget for retirement — or life has already made this decision for them — this is not a viable option.
CNN notes that many people then believe Medicare will come to the rescue, but it does not offer long-term coverage. Medicaid, on the other hand, might pay for these costs. However, only retirees with very low incomes qualify. For some people, pushing themselves into this lower-income bracket is the only available option. It is not a bad one either if they plan properly.
Medicare describes itself as a joint program between states and the federal government. The government website acknowledges that many people choose to “spend down” their assets to qualify for Medicaid while in a nursing home. Because of this, it recommends sticking to nursing homes that take Medicaid payments. Most nursing homes do, but apparently, not all.
The Medicaid nursing home limits and eligibility are governed on a state basis, so some local research is necessary. People can start off by calling their local Medicaid office toll free at (800) 633-4227.