How Would You Pay for Long-Term Care?
May 24, 2024
According to the U.S. Department of Health and Human Services, seven out of 10 people age 65 and over will need some type of long-term care. Medicare only pays for skilled services or rehabilitative care in a nursing home for a maximum of 100 days, and unfortunately, it does not pay for non-skilled assistance with activities of daily living, including walking, bathing, dressing, and many other long-term care services.
Despite this limited coverage, almost half of Americans age 65 and older said that Medicare would be the main source of funding if they or a loved one entered a nursing home due to a long-term illness or disability. And only 6% identified Medicaid, even though it is the primary source of such funding.
Percentage of Americans age 65 and older who identified the following as main source of funding if they or a family member entered a nursing home:
- 45% Medicare
- 18% Personal income or savings
- 15% Not sure
- 9% Private health insurance
- 6% Medicaid
- 3% Long-term care insurance
- 1% Financial help from family
Source: Kaiser Family Foundation, 2023 (may not total 100% due to rounding)
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