Are You Assuming Medicaid Will Cover Your Long-Term Care?

cashMany people plan on Medicaid covering their Long-Term Care (LTC) costs. Medicaid is the fallback for people who do not have enough money to pay for this care. It is a payer of last resort and pays the caregivers less than the cost to provide that care for you. That is why many facilities will not accept you unless you have personal funds to pay for at least 2 years of care before turning to Medicaid.

This morning’s Wall Street Journal stated that the Medicaid budget has grown 40% in just 3 years! Yes, some Medicaid pays for health care, but the majority of Medicaid dollars go towards LTC.
10,000 Americans turn 65 every day – and will for another 15 years – as the baby boomers age past 65. Many, if not most of them do not have the savings or insurance to pay for their LTC. Health and Human Services states that by age 65, 70% of us will need LTC. Are you depending on Medicaid to have money left by the time you need help with day to day activities or succumb to dementia?

Let’s review what we have covered so far:

Medicaid is a last resort government welfare program to pay for LTC

It pays less than the cost of care so facilities often say no at the door if you are unable to pay for your care.

The Medicaid budget has grown 40% in just the past 3 years.

Do you see a problem with not planning ahead for your care? Do you think you are too young and healthy to worry about this? If your car is shiny and new and not currently wrapped around a tree do you feel you don’t need car insurance yet?

By 60 years old fully one fourth of us can no longer purchase LTC insurance. How long do you plan to wait before investigating this to see if it fits your budget? Many people are surprised that when coverage is chosen appropriately, it cost less than expected. At we have access to products most insurance people who “dabble” in LTC insurance do not have. We also have 24 years of experience in helping people choose appropriate coverage. Check us out at or call to review your coverage, or investigate if this is right for you. We are here to help. (920) 884-3030

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