Long Term Care

This is a classic good news/bad news topic.

The good news is that there is a federal program that will pay for the majority of your long term care expenses. The bad news is that you must essentially be broke to get it.

Medicaid will pay ...after you've spent the majority of your assets paying the huge cost of long-term care. If you haven't priced it lately, it's running about $50,000 a year and going up at least 5% annually

Divide $50,000 into your gross estate to determine how many years before Medicaid will help out.

Perhaps "spending down" is the most efficient plan. The cost of long-term care coverage is relatively expensive. $300-$400 a month for a husband and wife is common. Yet you could spend that much premium for twenty years, and it would still only take about 3-4 months in a nursing home to use up a comparable amount of your cash.

It's expensive because there's no alternative to it. Medicare will pay for the first twenty days, and a portion of the next eighty days. A Medigap supplement will pick up the difference for that eighty day period. That's it...100 days...and even that is contingent on having been in the hospital first.

If you have any hope of conserving your estate, and leaving any legacy to your children, LONG-TERM CARE coverage is the only answer.

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