Kerry Peabody, CLTCLong Term Care, Life &

Disability Agent

What You Need to Know About Long Term Care

• You’re going to live a good, long life, and the longer you live, the more likely it is you’ll need help at some point.

• Providing care is physically and emotionally exhausting for spouses and family members.

• Paying for long term care “out of pocket” can easily devastate you retirement savings.

This simply means that you need to have A PLAN to pay for long term care.

Some Things to Consider

• It’s NOT medical care.

• Long term care is…• Care and supportive services required for extended

periods due to chronic illness, disability, or cognitive loss

• Almost always “custodial care”

• Help with Activities of Daily Living, such as bathing & dressing (ADLs)

• Supervision needed because of a cognitive impairment

What is Long Term Care?

• For every person in a nursing home, there are four others receiving care in a community setting.

• At home

• Adult Day Care

• Assisted Living Facility

• Planning ahead will help you stay out of the nursing home as long as possible

This Isn’t Just About Nursing Homes

• Your own money

• Your family

• Government programs

• Sharing the risk with an insurance company

How Can You Pay for Long Term Care?

How Much Does Long Term Care Cost in Southern Maine?

Remember, this is what long term care costs today. The real problem is what care will cost

when you need it.

Private nursing home room

$127,750 per year

Assisted Living Facility

$60,600

Home care $50 - $150 per visit

Private nursing home room

$338,959

Assisted Living Facility

$160,790

Home care $100 - $300 per visit

Expected costs in 20 years?

What would costs like these do to retirement savings?

• Medicare is health insurance - it does not cover custodial care

• 20/80/YOYO rule

• Medicare “supplement” policies only cover the gaps in Medicare as far as deductibles, etc. They do not cover long term care.

Medicare

• Medicaid qualification has been made next to impossible for anyone with assets

• Spend down• Look-back period• Penalty period• Home equity disqualifier

• HR 6300… the next wave

Even if you qualify for Medicaid, what have you really accomplished?

Medicaid

• Help to keep you in control of care decisions

• Help you stay out of the nursing home as long as possible

• Reduce the burden on your family

• Pay for care at home, in adult day care, hospice care, assisted living, or a nursing home

• Protect your assets

• Be affordable, if your plan is properly designed

Having Some Form of Long Term Care Insurance Will...

• Traditional long term care insurance

• Life & Long Term Care “Combo” plans

What are the options?

Kerry Peabody, CLTCLong Term Care, Life & Disability

Insurance Agent

(207) 523-2253

Thank you!