Costs rising out of long term care services are paid by Long Term Care Insurance. Help needed to carry out daily activities like eating, bathing, dressing and using the bathroom etc. when you have a physical disability or cognitive impairment such as dementia caused by Alzheimer’s disease is called Long Term Care. Traditional health insurance, Medicare or Medicaid do not pay for such care. This kind of care is not received in a hospital nor is it intended to cure you. You may need this kind of care for the rest of your life and can receive it in your own home, a nursing home or assisted living facilities.
The Federal Health Insurance program is called Medicare and aims to provide health care services for people 65 or older. It also covers those who have certain disabilities under the age of 65, and those dealing with permanent kidney failure requiring dialysis or a transplant. People suffering from ALS or Lou Gehrig’s disease are also covered by Medicare. Medicare pays only for short term skilled care like inpatient hospital stays, inpatient skilled nursing facility stays, hospice care and home health care. Out patient medical services such as doctor visits, diagnostic tests and preventive care, prescription drugs are covered by Medicare. Medicare provides for specialized care in hospital and only for a limited time.
Federal Funds supplement a state based program called Medicaid. In California the Medicaid Program is called Medi-Cal. The poor and impoverished are provided health services by Medicaid according to the state’s guidelines. One must meet the state’s poverty criteria in order to be eligible for Medicaid. Usually this means you need to expend all but $2000 of your assets. Medicaid, a welfare program kicks in only after a person’s assets are gone!
Medigap is a form of private supplemental health insurance policy which increases the amount of health insurance for eligible Medicare recipients. Medigap is provided by private health insurance companies such as Humana, Blue Cross and Blue Shield etc. The 12 standardized Medigap Policies have the same benefits regardless of which private company sells it to you. A part or all of Medicare’s coinsurance and deductibles are paid by Medigap policies. A few Medigap policies cover health care costs which are not covered by Medicare like emergency medical care in foreign countries.
In conclusion, Long Term Care Insurance pays for costs resulting from Long Term Care. To protect your assets and to safe guard yourself and your family in case you need long term care, invest in a Long Term Care Insurance policy.
Want to find out more about long term care insurance, then visit Maria Smith’s site on how to choose the best long term care insurance policy for your needs.
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