A Study of the Planning and Financing of Long-Term Care

The possibility of long-term care for every person becomes more of a reality everyday. The connotation of long-term care generally implies nursing home care, although a person does not qualify for a nursing home solely on the basis of age. Individuals who are chronically ill or recovering from surgery also require health and personal care services including daily supervision. The focus of this paper will be of long-term care as it refers specifically to the elderly. Planning for long-term care seems to a topic that no one discusses until it personally affects them. The reason for this is the association of the term \u27nursing home\u27 with incapacity and death. Whether planning ahead for your own convalescence or that of parent or relative, it is important to determine what financing strategies will be needed for funding the rising costs of health care. What many people do not realize is that being prepared by planning for the possibility, they will be secure in knowing that they are receiving the best care at a price they can comfortably afford when the situation arises for them. The main impetus for considering this planning process is that technological advances are extending the length of the average lifespan by years. Adding to that are the implications of the \u27graying\u27 of America\u27s baby boom generation which projects that large numbers of individuals will be needing longterm care at the same time. This will cause significant increases in health care costs and difficulty in gaining residency at a facility. The end result being that it will take serious financial planning to ensure that resources will be available to secure the type of care and quality of life conditions that will be acceptable to each individuals\u27 needs and standards. There are many misconceptions concerning financing long-term care. One of them is that Medicare will take care of the entire bill. Actually it is Medicaid that pays for almost half of all nursing home expenses and the rest is paid through private resources. This study will explore the benefits and shortcomings of Medicare, Medicaid, Medigap, Long- Term Care Insurance, and the strategies that will provide the necessary resources for long-term care