Long-Term Care Insurance
MR. WATSON: Anybody have any idea what a nursing home costs? Has anybody dealt with it?
(Hands up.)
MR. WATSON: How much does it cost?
WOMAN: About two grand a month.
MR. WATSON: Where?
WOMAN: Oh, it was in South Carolina.
MR. WATSON: Anybody dealt with one down here?
MAN: That's cheap. For a nursing home in California, we paid about $7,500 a month.
MR. WATSON: As we discussed earlier, only Medicaid will pay anything towards the cost of a nursing home. So, here comes a long-term care policy to the rescue. These policies are designed to pay a stated amount per day should the insured require the services of a nursing home. The daily benefit for at-home care is typically half the nursing home benefit. Some definitions are necessary.
- An acute illness is a serious condition, such as pneumonia, from which the body can fully recover with the right medical treatment.
- A chronic condition, arthritis, heart disease or hypertension, are treatable but not curable.
WOMAN: I know a way to remember the difference between an acute illness and a chronic condition.
MR. WATSON: Bring it!
WOMAN: I had a cute boyfriend who left me. He hurt me. But, I got over him. He was cute but i recovered.
MR. WATSON: Wow!
MR. WATSON: The need for long term care arises when a person is unable to perform the basic activities of daily living, such as bathing, eating, toileting, walking, or dressing.
MR. WATSON: There are three levels of categories long term care:
- Skilled nursing care is continuous, around the clock care provided by a licensed medical professional under the direct supervision of a physician. This care is usually administered in a nursing home.
- Intermediate nursing care is provided by RNs or LPNs under the supervision of a physician. It may be provided in the home but does not require 24 hour supervision.
- Custodial care provides assistance in meeting the daily living requirements, such as bathing, dressing, getting out of bed, etc. Such care does not require specialized medical training, but it must be given under a doctor's order. This care is usually provided in a nursing home but can also be given in adult day-care centers, respite centers or at home.