How will you pay

21 Mar 2024 · 1 min

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In this concise monologue, the speaker warns that most adults will eventually need long-term care in a nursing home and outlines the three primary ways to fund it. The first option, private pay, typically costs around $7,000 per month and does not guarantee superior care. The second option, long‑term care insurance, is presented as the best solution for people in their late 50s or 60s, provided they can afford the premiums. The third option, Medicaid, is described as a means‑tested program that requires applicants to spend down assets to a very low threshold ($2,000‑$3,000) and treats a home as a loan that the state will try to recoup. The speaker emphasizes the need to understand these options early, especially the financial implications of Medicaid and the importance of securing insurance before eligibility limits are reached.

Chapters

At some point in your life, you're probably going to need long-term care. And when I say long-term care, I'm talking about a nursing home. So whether you're 25 or 65, you better learn that there are only 3 ways to pay for it. The first way is straight out of your pocket, private pay. And unless you're at a nursing home that serves cocktails at 5 o'clock, private paying does not mean that you're going to get any better care than those who are paying with Medicaid benefits. And the cheapest places right now are about 7 grand a month. The second way is long-term care insurance, and that's the best way to pay for long-term care. If you're in your late 50s or 60s, You need to check it out, find out if you can afford the premiums. And the third way is Medicaid benefits, but you need to know that Medicaid benefits is not free money. If you have any money, you'll have to spend it all but $2,000 or $3,000 to qualify. And if you own a home, Medicaid is just a loan. They will do everything possible to get their money back out of your home.