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The difference between long-term care insurance and medicaid

On Behalf of | Apr 10, 2020 | Medicaid Planning

If you have a loved one who is at risk of losing their independence, you may be concerned about how they will be able to gain access to long-term care. People are living longer, so long-term health care is something that is becoming of increasing important. However, these care services can be extremely expensive, and elderly people can quickly burn through estates, meaning that their loved ones will not be able to gain an inheritance.

If you want to help your parent or loved one to navigate their future health care, you’ll want to consider both long-term care insurance and Medicaid. The following is an overview of the difference between these two options so that you can make an informed decision.

What is Medicaid?

Medicaid is a multi-part program that is designed to provide health services to those who may not otherwise be able to afford it. Medicaid has been in place since the 1960s and has the intention of reducing the impact that poverty has on health.

Many people try to manipulate their estate to qualify for Medicaid, some choosing bankruptcy so that they will meet the eligibility criteria. While Medicaid offers affordable care, it does not offer the same range of options and benefits that long-term care insurance does.

What is long-term care insurance?

Long-term care insurance is a private service that is a more expensive alternative to Medicaid. In the majority of cases, it covers all or most of the costs of assisted living facilities. Those covered by long-term care insurance have many more options available to them, and in general, they will be able to gain access to the best quality care available.

What is the best choice for my loved one?

The best choice for your loved one will likely depend on the extent of their assets. If they qualify for Medicaid, they likely have only limited assets. If they have a larger estate, they may have already obtained long-term care insurance.

If you want to help your loved one plan for long-term care, you should start by having a sensitive conversation with them to discuss the future and to address any concerns they have.