The unfortunate reality is that many seniors are unprepared for the high cost of a nursing home. Since nursing homes can cost upwards of $8,000 per month, you risk depleting your entire nest egg on care costs in a matter of months. The good news is you have a few different options to pay for a nursing home stay if you need it.

 

Limited Medicare Coverage

Most seniors rely on Medicare to cover their medical costs. Unfortunately, when it comes to long-term care, Medicare only covers a nursing home stay in limited circumstances and only after an eligible hospital stay. If you are admitted to the hospital for at least three days and are then moved to a skilled nursing facility, you may qualify for Medicare coverage for up to 100 days. The first 20 days are covered fully, while days 21 through 100 require a daily copayment. Again, this coverage is only available in certain scenarios and is most commonly used for rehabilitation.  

 

Planning Ahead with Long-Term Care Insurance

The best way to pay for a long-term care stay is to put a plan in place well before you need care. This may include a variety of asset protection strategies, including purchasing long-term care insurance (LTCI). LTCI allows you to set aside funds to be used for a future care need. If you are a healthy adult looking to achieve financial peace of mind as you age, now is the best time to plan for your future long-term care.

 

How to Protect Your Savings from a Nursing Home

If you have not planned ahead and are currently facing a nursing home stay, it’s not too late to protect your hard-earned savings. With Medicaid planning, you can accelerate your eligibility for Medicaid benefits while also protecting your life savings. Medicaid pays for the majority of long-term care costs in the United States, and contrary to popular belief, you do not have to exhaust your entire nest egg in order to qualify. 


 

To learn more about your options for paying for a nursing home stay, download your own copy of Paying for Long-Term Care: The Essential Senior Guidebook. Then, get connected with a local planning professional who can help you determine the best solution for your situation and implement your customized plan. Visit our website to learn more.