“Retirement planning should include long-term care costs,” by Alexandra Olson, AP
“Many Americans have a blind spot when it comes to retirement planning: long-term care costs. Even though the majority of Americans will at some point need long-term care, few are planning for it. Many underestimate the costs and mistakenly believe health insurance can help cover it. . . . Here is some guidance on how you can get a jump-start on planning. . . . So it’s a good idea to take the time to research Medicaid rules, particularly what sorts of assets you might have to spend down to qualify. Research how other long-term care financing plans can affect your Medicaid eligibility. For instance, annuity payments may count as income but reverse mortgage payments do not. The government website LongTermCare.gov provides a good overview of Medicaid long-term care coverage and eligibility. . . . Simply put, [LTCI] premiums are too expensive for most people.”
LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform):
There, in a nutshell, is the whole problem with LTC financing. People fail to plan so they should learn how to get Medicaid and forget LTC insurance as too expensive. Ugh! The truth is the opposite. People don’t plan because Medicaid pays which has crowded out the market for LTCI.