Does Medicare Cover Long-Term Care?

No, Medicare does not cover long-term care (custodial care). This type of care makes up more than 90% of all long-term care services. Examples of custodial care is when you need help with walking, bathing, eating, dressing or using the toilet. This is what people need most when they have a physical impairment from a stroke. Or, due to cognitive impairment from dementia or Alzheimer’s disease. Don’t make the mistake of thinking Medicare covers long-term care costs. It doesn’t.

Further, about 80% of care at home is provided by unpaid caregivers. With more than half of this care including intensive caregiving assistance with personal care such as bathing or feeding.⁴ And it’s not only seniors that need long-term care. Over 35 percent of people currently receiving care are between the ages of 18 and 64.⁵

When To Buy Long-Term Care Insurance

Like most advisors, we recommend buying long-term care insurance in your fifties or early sixties for the following reasons:

• The younger you are when you buy a policy, the lower the annual premiums.
• Even though you pay premiums a longer period of time, you’ll typically pay less overall than someone buying at an older age.
• By the time you reach your mid sixties, you’re more likely to have a medical condition that makes you ineligible for a preferred-health discount, or makes it tough to get coverage at all.

So it almost never pays to wait. And, while you’re waiting, you’re uninsured. If an accident or illness happens causing you to need long-term care, you’ll have to pay out of pocket.

Find Out If You Qualify For LTC Insurance >

Understand LTC Partnership Policies

Arkansas Long-Term Care Partnership Program

Arkansas Long-Term Care Partnership Program policies join private long-term care insurance with special access to Medicaid. Special asset protection features of the Arkansas Long-Term Care Partnership Program allow you to keep all, or part of your assets under the Medicaid program. This applies if your long-term care needs last longer than the benefits of your Partnership policy. Insurance premiums for an Arkansas Long-Term Care Partnership policy is like other LTC coverage. It’s still smart to compare Partnership policies with other options. Doing so can find you a wider range of choices, including Hybrid Long-Term Care Insurance not available under the Arkansas Long-Term Care Partnership Program.

Partnership Reciprocity

In Arkansas, reciprocity applies if you buy a qualifying Long-Term Care Partnership policy in another State and then later move to Arkansas. Reciprocity means you will not lose the special asset protection when you move to Arkansas. The State of Arkansas would also recognize accumulated asset protection for Medicaid qualification, if you’re already receiving long term care benefits from your Long-Term Care Partnership policy before relocating.