By Jay Greene, Esq., CPA–
Who Needs Long-Term Care?
Long-term care is defined as a service that helps to meet the medical and non-medical needs for individuals with a disability, illness, or for those who cannot provide sufficient day-to-day care for themselves. The enrollees of long-term care programs can be any age, but the truth is, as we get older, the possibility of enrolling into long-term care programs becomes increasingly more likely.
Entering into long-term care is an important step towards getting the assistance needed to maintain the quality of life for the enrollee. When deciding to enroll into long-term care, it’s important to be aware of the different types of options available, and how expensive the care will be. There are three primary methods for providing long-term care, each having different benefits and trade-offs.
The first option is to hire care providers to come to the home of the enrollee needing assistance. This option can be beneficial since the enrollee will be in the comfort of their own home. However, the downside to this option is the home is not a facility, meaning it may not be designed to support these situations. Home caregivers range in prices, and they can become very expensive if they are a 24/7 support service.
A less expensive possibility when choosing long-term care is enrolling into an assisted living facility. Each individual facility may offer different benefits and features, but the core concept is to provide personal care in a home-like environment, while offering the freedom of a semi-independent lifestyle for the enrollee. Assisted living costs over $10,000 per month on average in California.
The final type of long-term care providing can be found in a nursing home. Nursing homes offer many of the same services as assisted living, namely personal and medical care, but nursing homes are regarded as clinical settings. Nursing homes may reduce the independence abilities of the enrollee, and they tend to be very expensive. Nursing homes can easily cost over $150,000 per year in California.
After hearing about the different types of care, you may be wondering, how does someone pay for all this care? There are a few options to pay for long-term care. The first option is to use the assets of the enrollee. But be advised, as this method can burn through assets very quickly. Another option is to have a long-term care insurance policy. This type of policy will help cover the cost of long-term care, but the coverage varies for every company. The third (and most common) option is to enroll into Medicaid/Medi-Cal. These government-funded programs will pay for long-term care, but they have an enrollment requirement system that relies upon income and asset level.
Now that you know how to pay for care, and which types of care are available, the question still remains: which care is the right choice? The majority of people benefit from contacting an experienced attorney to learn how to get the most out of their long-term care goals. Our firm specializes in Medicaid/Medi-Cal Trust planning and asset protection, both of which are ideal when looking into long-term care. To learn more about our services, please reach out to our office at 415-905-0215 to schedule a consultation so you can learn how to plan for long-term care.
Statements In Compliance with California Rules of Professional Conduct: The materials in this article have been prepared by Jay Greene for educational purposes only and are not legal advice. This information does not create an attorney-client relationship. Individuals should consult with an estate planning and elder law attorney for up-to-date information for their individual plans.
Jay Greene, Esq., CPA, is the founder of Greene Estate, Probate & Elder Law Firm based in San Francisco, and is focused on helping LGBT individuals, couples, and families plan for their future, protect their assets, and preserve their wealth. To learn more and to schedule an appointment, visit https://assetprotectionbayarea.com/
Published on July 14, 2022
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