Most people assume that their insurance plan will provide reimbursement for care—especially if they need care at home as a result of an accident or illness.  And many adult children of parents who need custodial care are shocked that Medicare does not provide service.  The reality is that there is no traditional insurance coverage provided for people with chronic illnesses—especially if there is no need for a hospital stay.  So if you need help due to illnesses such as Multiple Sclerosis, Parkinson’s, Alzheimer’s, etc., you will need to rely on family and friends to provide care and financial support or depend on government assistance unless you have planned ahead by having a long-term care plan in place. 

The cost for long-term care amounts to over $125 billion per year in America.  (U.S. General Accounting Office)  Nursing home care costs an average of $52,195 per year (for semi-private room) and home care can cost an average of $23,400 per year.  (Mature Market Institute, “MetLife Market Survey on Nursing Home and Home Care Costs”, 2002) 

44% Medicaid

25% Out of Pocket (Private Pay)

14% Medicare

2% Private Health Insurance

8% Long Term Care Insurance 7% Other 

(Source: Department of Health and Human Services, Health Care Financing Administration, Off ice of the Actuary, National Health Statistics Group, Personal Health Care Expenditures, 2001)