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Long Term Care is not something any self respecting baby boomer wants to think about. We’re a fiercely independent lot, and the idea of having someone else provide daily care is repulsive to us. But it’s reality. At some point, most of us are going to need help getting through the normal course of a day, regardless of whether or not we have a disability.

About 60 percent of people over age 65 will require at least some type of long-term care during their lifetime. Most long-term care is provided by family and friends, but you also may need to obtain such care services from an unrelated individual, community organization, agency, or residential facility.

Factors that influence your risk of needing long-term care services include:
• Age – As you get older, your risk generally increases.
• Marital Status – Single people are more likely to need care from a paid provider.
• Gender – Women are more likely than men to need long-term care, primarily because they tend to live longer.
• Lifestyle – Poor diet and exercise habits can increase your risk.
• Health and Family History – A family history of poor health may increase your risk.
• Having a disability, such as spinal cord injury, can increase your risk

Prices for long-term care services will vary according to the type of service you need, how often and how long you need it, and what part of the country you live in.

The average U. S. costs for various types of care are:
• $5,566 a month for a semi-private room in a nursing home
• $6,266 a month for a private room in a nursing home
• $2,968 a month for care in an assisted living unit
• $19 per hour for a home health aide.

These costs can add up quickly. For example, if you have a home health aide assist you with bathing three times a week, you’ll pay, on average, $19 per hour (possibly with a three-hour minimum) or $57 x three days = $171 a week. This would amount to nearly $9,000 a year.

So now the question becomes: Who’s going to pay for this care? There are a variety of options to consider:

Medicare, does not pay for most long term care, but will pay part of the cost for skilled nursing and rehabilitative services in a skilled nursing home (up to 100 days) following a recent related stay in a hospital.

Medicaid, a federal and state funded program run by states, helps certain low-income individuals and families pay for some or all of their medical bills. Medicaid may help pay for nursing home care and sometimes services at home.

All states fund programs and services to help people needing support to live independently. Certain programs are available in all states, but some programs can be unique to a state or a local community.

Veteran’s Affairs (VA) provides long-term care for service-related disabilities or for certain eligible veterans. Find out more about VA services in your area online or call the VA at 1-800-827-1000.

Voluntary and Faith-based Organizations provide support to people living with severe illnesses and chronic conditions. Two good places to start your search are National Health Council and Faith in Action.

Long-term Care Insurance is specifically designed to cover the costs of long-term care services. Depending on the policy, long-term care insurance may pay for care in nursing homes, assisted living facilities, and/or at home.

Personal saving and investments is how most people who are not on Medicaid pay for long-term care services. The U.S. government developed a long-term care savings calculator to give you an idea of how much you should be saving monthly to cover the costs.

Reverse Mortgages are a way for people to tap into the equity in their homes to pay for their long-term care needs or other items. A reverse mortgage is a loan against your home that you do not have to pay back for as long as you live in your home. These loans can have high costs and be complicated

Continuing Care Retirement Communities (CCRC), sometimes called life care communities, are residential facilities designed to meet the changing needs of older people on one campus. Residents can move from one housing choice to another as their needs change. Find out more about CCRCs.
 
Life Insurance, Annuities and Trusts can sometimes be used to help pay for long-term care. These financial products can be rather complex. It is important to have a thorough understanding of the benefits and risks. Contact a certified financial planner for help.

To find out more about Long Term Care, visit:
http://www.longtermcareliving.com/financial/pay/howtopay2.cfm
http://www.longtermcare.gov/LTC/Main_Site/index.aspx
http://www.aarp.org/families/caregiving/caring_help/what_does_long_term_care_cost.html