If you or someone you love is nearing retirement, there’s a topic no one likes to talk about—but everyone needs to understand: long-term care.
Whether it’s in-home assistance, moving into assisted living, or full-time care in a nursing home, long-term care becomes a reality for nearly 70% of Americans over the age of 65. And here’s the truth that surprises most people:
Medicare doesn’t cover most long-term care.
That’s right. Medicare may pay for some skilled nursing or rehab services under very specific circumstances—but it does not cover custodial care, help with daily tasks like bathing, dressing, or eating, or the cost of an assisted living facility. That’s where the financial shock often comes in.
Let’s walk through what you need to know and how to plan smartly—so your care needs don’t drain your savings or burden your loved ones.
🏠 Understanding the Levels of Care
Long-term care isn’t one-size-fits-all. It spans a wide spectrum depending on how much assistance you need:
- In-Home Care: Helps with daily living (bathing, dressing, cooking). Ideal for those who want to age in place but need support.
💰 Average cost: $5,000–$6,000/month.
- Assisted Living Facilities: Offer housing, meals, and help with daily tasks in a social, community-based setting.
💰 Average cost: $4,500/month and up.
- Nursing Homes (Skilled Nursing): For individuals who require around-the-clock medical care.
💰 Average cost: $8,000–$12,000/month, depending on location and level of care.
Over several years, these costs can easily exceed $300,000, especially when care starts at home and transitions to more intensive settings.
💡 Why Planning Ahead Matters
Because Medicare isn’t the answer, families are often caught off guard. In the absence of a plan, they end up spending down savings, selling assets, or scrambling to qualify for Medicaid.
By planning ahead, you can:
- Protect your savings and assets
- Avoid crisis decision-making
- Ensure your wishes are honored
- Reduce stress on family members
- Qualify for coverage options that aren’t available later
💼 Financial & Legal Strategies That Help
So what can you do? Here are a few smart strategies to consider:
Long-Term Care Insurance:
If purchased early enough (usually before age 65–70), this can cover a large portion of your care costs. Policies vary widely, so work with a trusted agent to find the right fit.
Hybrid Life/LTC Insurance Products:
These are newer options that combine life insurance with long-term care benefits, offering more flexibility and often no “use-it-or-lose-it” downside.
Asset Protection Planning with an Elder Law Attorney:
Legal tools like irrevocable trusts can help protect your assets from being counted against you for Medicaid eligibility—but only if done ahead of time.
Medicaid Planning:
Medicaid can cover nursing home care, but eligibility is strict. Proactive planning—well before you need care—can help you qualify while preserving what you’ve built.
🧭 Final Thoughts from Mike
I’ve seen too many families caught off guard by long-term care costs. They assume Medicare will cover it, or that they’ll “figure it out when the time comes.” But the truth is: the earlier you plan, the more options you have.
Whether it’s setting up a financial strategy, understanding Medicaid rules, or simply having the conversation with your loved ones—start now. It’s not just about protecting your money. It’s about protecting your independence, your dignity, and your peace of mind.
If you’re not sure where to begin, reach out. I’m happy to connect you with trusted elder law attorneys, help you evaluate your insurance options, or simply walk you through what to expect.
OR register to attend a free Navigating Long-Term Care in-person seminar near you by visiting our Events Page.
Because this isn’t just about care—it’s about confidence in the years ahead.