Debunking 8 Myths About Long-Term Care

Debunking The Myths: What you need to know

We all dream of living happily and well to a ripe old age. But if that dream doesn’t include how we will get the care we will more than likely to need, it’s time to wake up. Here are some long term care myth busters.

Myth 1: I am already covered for long term care.

The Truth: Less than 10 percent of those age 50 and over own a long term care insurance policy.¹ Long term care is NOT covered by other kinds of insurance – not your HMO, not your health or long term disability insurance policy. Only long term care insurance covers day-to-day personal, unskilled assistance in performing everyday activities of daily living, which account for the majority of daily long term care needs.

Myth 2: Medicare or Medicaid will cover my long term care costs.

The Truth: Medicare only pays for some days of skilled care which follows a hospital stay for a related condition and limited personal care. Medicaid pays for long term care only for people with very low assets and limited income. For those with savings and other assets, Medicaid requires that you spend down your own money before its benefits begin.

Myth 3: I’m too young to worry about it that now.

The Truth: If only we all had the luxury of knowing when we’d need long term care! The need can arise at any time in a person’s life. Forty percent of people currently receiving long term care are adults 18- to 64-years-old.² But the real issue is that premiums are more affordable the younger you are at purchase time. So now, not later, is the time to plan.

Myth 4: Few women will need long term care.

The Truth: A 2005 study found that 69 percent of people turning 65 years of age will need some long term care before they die. And women will need this care more than men. An estimated 79 percent of women currently turning 65 will need long term care, compared to 58 percent of men.³

Myth 5: In our family, we take care of our own. I don’t need the insurance.

The Truth: Yes, families do provide much of the informal long term care. But consider the costs to your caregivers’ financial and physical well being. At least six out of 10 of these caregivers are also employed in the paid workforce, and 42 percent are over the age of 50.⁴ The costs to these caregivers themselves are hard to calculate. They include out-of-pocket expenses, the economic insecurity caused by changes in work patterns, and physical health effects. Consider too, the type of care you need may require skilled, professional help or a stay in a community-based, assisted living facility or nursing home.

Myth 6: I want to stay in my own home. Long term care insurance only pays for nursing homes.

Truth: Today’s long term care policies help pay for stay-in-place services like home care assistants or health aides, homemakers and companions. These caregivers can help with activities of daily living, preparing meals, shopping, laundry and assist with household tasks. Long term care insurance can also help pay for transportation, meal delivery, medical equipment, modification to the home to accommodate the disabled, and caregiver respite services.

Myth 7: I have substantial assets. I can pay for care for long term care myself.

The Truth: According to a recent AARP study, most Americans seriously underestimate the costs of a nursing home room, assisted living, home health aides. The national average cost for care at a nursing home is $6,357 per month.⁵ If monthly costs increase at the current rate of inflation, then the average cost for nursing home care will rise to over $8,000 per month after 10 years, and to almost $12,000 per month in 20 years.⁶ According to experts at American General, only those with a net worth of over $500,000 may truly be in the position to cover the costs of long term care by on their own.

Myth 8: My family can’t afford long term care insurance.

The Truth: Long term care insurance is more affordable than you most people think. Many policies can be tailored to meet your needs and your budget by adjusting the lifetime maximum amounts payable and other options. We recommend that long term care be part of your financial and retirement plans.

1	Alecxih, Lisa, “A Dozen Long Term Care Myths and Their Implications for Medicaid Reform; Presentation to the Medicaid Commission (May 18, 2006)
2	U.S. Department of Health and Human Services, National Clearinghouse for Long Term Care Information, www.longtermcare.gov (accessed December 31, 2009)
3	Kemper, Peter, Harriet L. Komisar, Lisa Alecxih, “Long-Term Care Over an Uncertain Future: What Can Current Retirees Expect?” Inquiry Journal 42 (Winter 2005/2006)
4	Eckenwiler, Lisa, Center for American Progress, “Caring about Long-Term Care; an Ethical Framework for Caregiving” (2007)
5	U.S. Department of Health and Human Services; National Clearinghouse for Long Term Care Information, 2008; www.longtermcare.gov. Calculation based on national average daily rate of $209 for 365 days divided by 12 months
6	Assuming an average annual inflation rate of 3.18 percent (average annual inflation rate, 2004-2008) and based on the 2008 average cost of nursing home care provided by U.S. Department of Health and Human Services; National Clearinghouse for Long Term Care Information, www.longtermcare.gov.