Taking Care of Mom and Dad: Long-Term Care Insurance
LTC insurance policies pay for extended care arrangements like assisted living facilities and nursing homes. LTC is not covered by Medicare, Medigap or supplemental insurance policies. Sometimes LTC policies are found as optional coverage in employer-provided or employer-coordinated insurance plans. A basic LTC policy covers the cost of a long-term stay in a nursing home. It pays for people with severe mental impairment, such as Alzheimer's disease or those who can't handle at least two of their essential physical needs (typically, bathing, dressing, eating, continence and moving around).
Comprehensive LTC policies include coverage at home, in adult day care and at assisted-living communities. They typically cover benefits in the following stages of care:
- Skilled care. This is medically required care from certified medical professionals (nurses, therapists, etc.) working under a physician's supervision. This care is provided so that a person can get back to a prior state of health. It can take place in a nursing facility (usually) or in your parents' home (less often).
- Intermediate care. This is skilled care supervised by a physician, but isn't required continuously -- only intermediately over a set period of time. This can take place in a nursing facility but is more likely to in your parents home.
- Custodial care. This is standard nursing home care that many elderly people require towards the end of their lives. It includes help with bathing, dressing and eating.
- Home health care. Also known as assisted living, this care is a step down from custodial care -- and takes place in your parents' home. It can include assistance with the activities of daily living -- housekeepingand routine chores.
