Chester County Medicine Winter 2019 - 17

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Know About Long-Term Care?
Can my family take care of me?
A need for long-term care may have a substantial impact on
your relationships with family or friends. Sacrifices may be made
to provide for your care. Family or friends may have to give up
free time, spend less time with their family, and take on the stress
and physical strain of becoming your caregiver. In addition, those
caregivers may need to take time off work or cut back on their
work schedule, adding financial strain. In the past, children took
care of their aging parents. Today, adult children may live at a
distance from their families and work full-time. Whether you
need care, or find yourself in the position of caregiver, long-term
care impacts your whole family.

How much do long-term care services cost?
Long-term care services may be very expensive. The national
median cost for a home health aide is $20.50 an hour. With
home care, you also have ordinary home and living expenses. The
national annual median cost for a private room in a nursing home
is $97,445 and can be almost double in some areas of the country.1

LONG-TERM CARE COSTS ON THE RISE
Year National Median Nursing Home Costs
2017 $97,445
2020 $109,612
2025 $133,360
2030 $162,253
2035 $197,406
2040 $240,174

How will you pay for care?
You may begin paying for long-term care services on your
own but find that your savings will only cover care for a limited
amount of time. You may plan to rely on health insurance or
government programs, like Medicare or Medicaid2. Long-term
care typically isn't covered by traditional health insurance plans.
Medicare generally provides for long-term care if it is part of a
rehabilitative plan or skilled care. Medicaid only pays after you
meet eligibility requirements, including significant restrictions
on income and assets.

Why should you consider whole and term life insurance,
annuities and long-term care insurance to fund your
long-term care needs?
Whole and term life insurance, annuities and long-term care
insurance are three options to help you plan for the high cost of care.
While you may also receive support from family or loved ones, one
way to help ensure that you receive the type of care you want - in
the setting you choose - is through individual long-term care
planning. A comprehensive policy may help you by protecting your
home, assets, retirement funds, and your estate from being used to pay
for care. In turn, those funds may be used to maintain your spouse/
partner's standard of living, financial security, and peace of mind.
Genworth 2017 Cost of Care Survey, conducted by CareScout®, June 2017.
Based on 2017 national median annual costs for a private nursing home room
with a 4% inflation rate assumption for subsequent years.
1

For more information regarding benefits provided by Medicare or Medicaid,
visit www.cms.hhs.gov. Medicaid guidelines vary by state. Contact your local
Medicaid office for details.
2

Provided by Joseph Leary, CFA®, MBA, CFP®, CPA, and
Jeremiah Sensenig, financial advisors with MassMutual
Greater Philadelphia.
Joseph and Jeremiah are registered representatives of and
offer securities, investment advisory and financial planning
services through MML Investors Services, LLC. Member SIPC.
Supervisory Office: 2 Bala Plaza, Ste 901, Bala Cynwyd, PA
19004. Tel: 610.766.3000
CRN202012-241043

WINTER 2019 | CHESTER COUNT Y Medicine 17
http://www.chestercms.org http://www.cms.hhs.gov
Chester County Medicine Winter 2019

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