Many have discovered that there are only two ways to pay for long term care services; Out of your retirement savings or with private long term care insurance. Most can't depend on the following government programs:
This is an entitlement program that provides health insurance for people age 65 and older. Medicare and health insurance does not cover most long term care expenses. Medicare requires that you need skilled care and that it is rehabilitative in nature. Most long term care is custodial care which is assistance with your activities of daily living, not skilled care. Medicare also requires that you continue to show improvement and provides services that are rehabilitative in nature. The very definition of a Chronic Illness that requires long term care is that it does not improve.
This is a Needs Based program with strict financial requirements including asset and income limits. Most of your assets and income must first be spent on your own care until you reach these limits. Once you reach these financial limits set by your state, ($2,000 in assets in most states) Medicaid can pay for your care in a nursing facility. Medicaid generally does not pay for home care. This is not a good planning option for those who do not want to become impoverished if care is needed.
The VA does offer veterans some extended-care services in some circumstances. However, access is not universal. Most long-term services (those expected to continue beyond 180 days) are generally available only to veterans who either have severe service-connected disabilities or pass strict means tests on their income and assets. Services are often not available everywhere, have long waiting lists, or are otherwise difficult to get into. In sum, VA extended care benefits are usually not relevant to any client who was not severely disabled in the line of duty and whose goal is to avoid becoming impoverished if care is needed.
