Long Term Care

Payment Guidelines

Long Term Care can be paid privately, through Medicaid (state-supported assistance) and/or through long-term care insurance policies. Fees may include:

• Cost of room (private or semi-private)
• Meals and snacks (dietetically prepared to meet medical needs)
• Utilities (telephone and cable TV are extra)

Note: Medications and medical/personal supplies will incur additional charges.

Medicaid

Medicaid is a State program that will pay most costs for people with limited income and assets. Eligibility varies by State. Check your State's requirements to learn if you are eligible. Medicaid will pay only for nursing home care provided in a facility certified by the government to provide service to Medicaid recipients. For more information about Medicaid payments, call the SHIP for your State or call your State's Medicaid office. The telephone number is in the blue pages of the phone book.

Personal Resources

About half of all nursing home residents pay nursing home costs out of their own savings. After these savings and other resources are spent, many people who stay in nursing homes for long periods eventually become eligible for Medicaid.

Long-Term Care Insurance

This is a private policy. The benefits and costs of these plans vary widely. For more information on these plans, contact the National Association of Insurance Commissioners (NAIC). It represents state health insurance regulators and has a free publication called "A Shopper's Guide to Long-Term Care Insurance." You also can get a copy of the Guide to Health Insurance for People with Medicare by calling 1-800-MEDICARE.

 

Deductibility of Qualified Long-Term Care Services

"If an individual is in a nursing home or a home for the aged because of his physical condition and the availability of medical care is a principal reason for his presence there, the entire cost of maintenance, including meals and lodging, is deductible. If an individual is in such an institution primarily for personal or family reasons, then only that portion of the cost attributable to medical or nursing care (excluding meals and lodging) is deductible. Payments to perform both nursing care and housework may be deductible only to the extent of the nursing cost."


Consult with your tax advisor for more specific information.