Long-Term Care: A Costly Surprise for Many Seniors

Many people assume Medicare covers long-term care, but that's not the case. This mix-up could lead to big financial problems for seniors. Long-term care includes help with daily tasks like bathing or dressing. Over 80% of people will need this help at some point. The confusion is clear: 58% of adults think Medicare covers long-term care, but it doesn't. Medicare only covers short nursing home stays. Long-term care is usually not seen as medical care, so Medicare doesn't pay for it. This leaves many seniors with huge bills. Long-term care costs can be shocking. Assisted living averages $5, 350 a month. Nursing homes charge about $9, 733. Many people think Medicare will cover these costs, but it won't. Medicaid does cover long-term care, but only for those with very low income. Only about 4% of older Americans have long-term care insurance. Many don't buy it because they think Medicare covers it. But Medicare doesn't, and this misunderstanding could lead to financial trouble. Seniors often underestimate the need for long-term care. Many don't see it as a big retirement risk. But the costs can be high, and without insurance, seniors may have to spend all their money to qualify for Medicaid. To prepare, consider long-term care insurance. It can be expensive, but there are many options. Costs vary based on coverage and benefits. Some policies even pay out to beneficiaries if you don't use the care. Costs vary by location. Assisted living in Albany, New York, averages $8, 093 a month. In Boulder, Colorado, it's only $4, 600. Shopping around can save money. A retirement planner can help create a plan to cover these costs.