WHAT IS Long term care?

Health insurance, including Medicare, is oriented toward addressing three types of care: preventative, minor, and “acute” healthcare needs.  An example of acute care might be a fall that results in a broken hip.  A hospital stay may be required, and medical bills will be incurred.  After the acute care event, you are expected to recover from the injury and return home.  Health insurance benefits, including Medicare coverage, are payable in this scenario.

Extended care, known as Long Term Care (LTC), is different.  As we live longer due to medical advances and healthier lifestyles, it’s likely that we’ll reach a point in our lives when we’re frail and might need assistance getting through our day safely.  This can be due to physical impairment, such as needing a wheelchair and help bathing, or mental impairment, such as Alzheimer’s.  These are chronic conditions that may eventually require extended care services through in-home care, an assisted living facility, or a skilled nursing facility.  These LTC costs are usually not covered by health insurance, Medicare included.  Without a long term care plan, these costs become out-of-pocket expenses that can significantly affect your income during retirement.