Retirement - Question 68

Why is it that some people do not purchase long term care insurance?

Many people believe that Medicare will cover their nursing home costs. The fact is Medicare pays. less than 3% of these costs. It was established to provide for short-term medical attention and not intended to be used for basic care such as bathing and dressing. In rare cases that Medicare covers skilled care costs it pays only up to 100 days. In the United States, the average stay in a nursing home exceeds 450 days.

Some people think they will qualify for Medicaid coverage if they transfer their assets to family members and thereby, become reduced to a state of poverty. But Medicaid has strict regulations against transferring assets to others in order to qualify for Medicaid benefits. In addition, many people would prefer not to see their-life savings wasted to pay their nursing hone bills.

Others do not wait to face the prospect 0f.needing long term care insurance and deny this possibility by saying “it won’t happen to me.” It is estimated that approximately 50% of all Americans age 65 and over can expect to reside in a nursing home at one time or another.