Tuesday, June 8, 2010

Who Pays for Long Term Care

Since the passage of the Health Insurance Portability and Accountability Act (HIPAA) in 1996, it is now clear who is primarily responsible for paying for long term care: YOU.
 
Long term care services aren't adequately covered by most types of insurance, or governmental programs including Medicare and Medicaid.
  • Most private medical and major medical insurance plans do not cover long term care.
  • Medicare generally covers some nursing home care, but only for a limited time.
  • Disability insurance only replaces lost income.  
  • Medicaid pays only for nursing home care after you have spent most of your assets.
That's why many Americans are looking at long term care insurance.