Cost of Services
|Do you know anyone who has stayed in a nursing home or has needed
professional home health care? Most of us do. A study by the U.S. Dept. of Health and
Human Services indicates that people of age 65 face at least a 40% lifetime risk of
entering a nursing home. Long-term health care has far-reaching financial
consequences that can have a significant impact on a family's savings and lifestyle. Would
you use up a significant part of your savings? For people who enter a nursing home,
the financial outcome can be worse: according to the Congressional Subcommittee on Aging,
70 to 80% of nursing home residents deplete their assets within 12 months.
Individuals and their families pay 42% of all long-term care costs from their own funds.2 Medicare, Medicare supplement insurance, and major medical health
insurance generally will not pay for long-term care expenses.3
1. American Council of Life Insurers, March 2000
2. Health Insurance Association of America, Long Term Care,
Knowing the Risk, Paying the Price 1997.
3. National Association of Insurance Commissioners - A
Shopper's Guide to Long-Term Care Insurance 1999.
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