Do you think Medicare covers long-term care? Here is a costly truth.
One of the big misconceptions about Medicare is that once you enroll, you can have all of your health-related needs met. In fact, there are many important services that Medicare does not pay for, including teeth cleanings, vision exams, hearing aids, and more.
Another big need that Medicare doesn’t pay for is long-term care. So that’s something you’ll have to plan for yourself. And it’s important to plan ahead by considering the costs involved.
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Do you know how much long-term care costs?
Many people are surprised to learn how expensive long-term care can be. Now, the following costs are national averages, and long-term care may be cheaper where you live. However, according to the latest data from CareScout, on average, annual long-term care costs are:
- Non-medical in-home caregiver: $80,080
- Assisted living community: $74,400
- Semi-private nursing home: $114,975
- Personal care unit: $129,575
These numbers may be shocking in and of themselves. However, keep in mind that some people end up needing long-term treatment for years.
Now imagine that you have $1 million saved for retirement, and when you turn 87 you will have $200,000 left over. You may think you are healthy. However, if you end up needing a nursing home for two years, your remaining savings may not be able to pay for it.
Don’t risk your finances
You may not need long-term care after all. Or you may end up asking for it for years. There’s no way to know. If you don’t want to risk financial ruin, start researching long-term care insurance options.
Unfortunately, long-term care coverage tends not to be cheap. However, if you need long-term care for an extended period of time, the annual premium may more than pay for itself.
If you are planning to sign up for long-term care insurance, a good time to do so is in your 50s. At that point, you may be able to secure a more competitive premium based on your health status. The older you get, the more expensive your coverage can be.
Of course, long-term care insurance is not your only option. But ignoring the potential need for long-term treatment is also not an option.
Medicare won’t pay for it, so you’ll need some kind of plan to cover it if you find yourself in that situation. So, if you decide that insurance is not the right solution, you should check to see if there is another way to handle that need in the future.
