Experts estimate that 33 percent of men and 52 percent of women 65 years of age and older will need some type of long-term care in their lifetimes. Yet few of us put much time, thought or resources into planning ahead for our family's future long-term care needs.

The important question is this: With average Michigan yearly nursing facility care costs exceeding $60,000, how can we access and afford care when we need it?

Basically, there are three common ways to pay for long-term care:

• Personal savings and assets. Individuals with savings typically use their income and savings to pay for long-term care costs out of pocket.  Unfortunately, few people accumulate the necessary wealth to be able to cover all of their long-term care needs without assistance from long-term care insurance or taxpayer-funded programs like Medicaid.
  
• Long-term care insurance. Purchasing long-term care insurance is an excellent way to plan ahead for the personal care and assistance you may need in the future. Covered benefits are paid from a chosen policy to help with long-term care services that are not covered by health insurance: such as assistance with eating, dressing and bathing. These benefits can help individuals protect savings and assets, retain control over their plan of care and reduce the impact on family members. Long-term care insurance plays an important role in a comprehensive financial plan. 
  
• Taxpayers. Nearly 70 percent of all nursing home residents pay for their care by spending down their personal assets and going on Medicaid, a taxpayer funded program intended to provide health care services to the poor. Unfortunately, even many middle class and higher income individuals end up on Medicaid to cover their long-term care. Medicare, also funded by taxpayers, covers minimal, medically necessary long-term care services.

© 2008 by Health Care Association of Michigan