For some reason, the majority of Americans believe Uncle Sam is going to take care of them when they end up in a long-term care situation.
A recent survey by the Nationwide Financial Retirement Institute found that over 70% of affluent baby boomers (income over 150k) believed that Obamacare will fund the costs of long-term care. Neither the Affordable Care Act nor Medicare will pay for long-term care costs. And the sad truth is, most Americans regardless of wealth or lack of wealth are not prepared and have no plan at all for long-term care… even though nearly 3 out of 4 of retirees will end up needing care during their retirement years.
So what does that mean for most Americans? Well, most people will be faced with spending through their savings and end up turning over their income to get help from Medicaid which is the safety net program. You become a ward of the State when you end up on Medicaid which means you also turn over your income and the government will then be in control of your care options and determine what services you are eligible to receive.
Turns out Uncle Sam is not the rich, loving uncle we thought he was. Medicaid is not only going to force you to spend through your savings and take your income, they are also going to be directly involved in where you receive care and negotiate the rate they will pay for that care. And it turns out Uncle Sam is on the cheap side. That is why the majority of assisted living facilities, adult family homes and nursing homes no longer accept Medicaid.
Long-term care insurance is the only viable way to mitigate the financial costs and stay in control of your care options. Uncle Sam knows this as well which is why the government has passed new laws like the Pension Protection Act and the State Partnership Program which rewards people for putting a long-term care insurance plan in place.
Learn more about your options at 525LongTermCare.com or join us every Saturday morning at 7:00 for Long-Term Care Radio on KIRO FM 97.3. New options are available and it’s never been easier to put a plan in place.