More About Long-Term Care

What is long-term care?

Long-term care is an array of support services for people who lack some ability to take care of themselves. Long-term care may be needed for an extended period of time and can be provided at home, in an assisted living facility or at a nursing home. Levels of care are specifically defined as:

• Skilled care, required around the clock, is provided by licensed medical professionals under the direct orders of a physician
• Intermediate care is skilled care required occasionally
• Custodial care, for people who need assistance with Activities of Daily Living (ADLs): bathing, continence, dressing, transferring, toileting and eating

Why should you be concerned about long-term care?

Two reasons:
1. The odds are great that you will need long-term care at some point in your life. Some 42% of Americans who reach the age of 65 can expect to utilize some type of long-term care during their lives, according to the U.S. Department of Health and Human Services.¹

2. The cost of long-term care can be staggering. The national average cost of a year in a nursing home is $54,900.² And the fee for a private-pay, licensed home health aide runs about $15 an hour. A nurse can cost two to three times more.³

Unfortunately, counting on Medicare probably isn't the answer. After a three-day hospital stay, nursing home costs for each benefit period are as follows: Days 1-20, Medicare pays 100%; days 21-100 Medicare pays all but the first $101.50 per day; after day 100, you are required to pay 100% of the costs incurred.⁴

While no one wants to think about the worst-case scenario, we can help you protect your financial future so you can focus your energy on what's really important — enjoying life today.

¹ 2005
² GE Long-Term Care Insurance Nursing Home Survey, March 4, 2002
³ US News & World Report, May 21, 2001
⁴ 2002 Guide to Medicare