The odds of falling prey to Long-Term Care are staggering. There is a 43% chance that someone age 65 or older will eventually enter a nursing home during his or her lifetime. On Average most of these nursing home stays will last about 2 1/2 years . And such care is not cheap. A year in a nursing home can average more than $100,000.00 in Connecticut. Unfortunately, many hold the mistaken belief that Medicare and Medicare Supplemental Insurance will cover their Long-Term Care expenses. At best, Medicare will pay for all or part of the first 100 days of care. That's all. The lions share of all Long-Term Care cost is paid from the assets of the individuals needing the care. Because the cost of Long -Term Care can be so Staggering many people are legitimately concerned they will lose everything they have worked so long and so hard to acquire. What's more troubling is even Medicaid will only begin to help out when an individual has become impoverished meaning an individual only has a net worth of $1,600.00.
However, not all is lost for Connecticut couples facing the prospects of Long-Term Care costs. Medicaid rules also act to protect the spouse living in the community from impoverishment. This means that under the law a community spouse will be able to keep some of his or her assets. In Connecticut a community spouse is allowed to keep among other things the primary residence, an automobile, personal assets and jewelry, household effects and potentially up to more then $100,000.o0 in additional liquid assets. Unfortunate, everything else may be subject to Medicaid spend down requirements.
Hopefully, this information has waylaid your immediate concerns about losing your home and all of your other assets if your spouse needs Long-Term Care in a nursing home. On the other hand, there are many resources that might help increase the total assets that could be preserved. Through the use of a Long-Term Care Insurance Policy or advance planning with the assistance of an elder law attorney, much more, if not all of the couples assets could be protected. Too often people avoid facing the reality of the Long-Term Care threat and avoid taking action while they can still make a difference. Planning in advance is the key to avoiding the devastating effects of the cost of Long-Term Care.
Who should own long term care insurance is a tough question. I think it makes more sense for a married couple to own a policy, rather than a single person. If a single person uses all of his/her savings/income to pay for care, that's not so bad. If, on the other hand, a spouse requires care and uses up a significant portion of the couple's savings and/or income, the healthy spouse would have quite a burden to bare: both emotionally and financially.
WW
Posted by: W. Wright | May 08, 2007 at 03:30 PM