Approximately 70% of people over age 65 will need extended care at some point in their lives, whether in their own home, at an adult care outpatient center, or in an inpatient adult care facility or nursing home, according to “2015 Medicare & You,” a guide published by the Centers for Medicare and Medicaid Services.
There Are More Ways than Ever to Plan for Extended Care
Even though people are living longer, making it more likely they will need extended care at some point, there are many new ways you can plan to ensure it’s covered if you do need it — but not have to pay for it if you don’t!
Be sure to talk with your retirement specialists at Wealth Preservation LLC to discuss what we believe are the best new ways to protect yourself and your family if the need for extended care arises.
Too many retirees think that Medicare will cover extended care, but it doesn’t.
Traditional Medicare Part A covers care in an approved hospital for 60 days, subject to a deductible of $1,288 (in 2016) each time you need it. From days 61-90, an additional $322* per day is charged, and at 91 days and beyond, the cost is $644* per day for each “lifetime reserve day.” (*2016 Medicare coinsurance rates.)
You only have a total of 60 “lifetime reserve days” which can be used for one concurrent or multiple incidents of extended care stays. After that, you pay all costs. And remember, there is no lifetime maximum out-of-pocket when it comes to Medicare.
According to the Centers for Disease Control and Prevention, the average length of a nursing home stay is 835 days—or more than two years. The average cost for that two years is $200,000, and is even higher in many parts of California!
Planning for extended care may be one of the most important aspects of your retirement plan. Contact us now at Wealth Preservation LLC and let’s discuss this.