AGING & DISABILITY SERVICES ADMINISTRATION
>Long-term Care Planning
Financial Planning
There are many ways people pay for long term care whether living at home or in a residential care facility. Putting together a financial plan today will help you safeguard your savings and peace of mind.
Long term care is often paid for using a combination of funds:
- Through insurance programs (Medicare, Medicaid, Veteran’s Benefits, and Long-Term Care Insurance).
- Privately out of pocket (funded through savings plan annuities, certain life insurance policies, or reverse mortgages).
Other Important Things to Know and Consider
- Medicare, including Medigap policies, does not cover the cost of long-term care.
- Medicaid is only for people who have a low income and few resources. By law, the state may recover (be paid back) for payments made for all Medicaid or state-funded long-term care services a person received before he or she died. Learn more about estate recovery.
Taking the next step
Get more information about financial planning
- Find a qualified financial planner. The following national organizations supply lists of financial planners by zip code or city. Use their website or call them to find a financial planner where you live.
- National Association of Personal Financial Planners or call 800-366-2732
- The Financial Planning Association or call 800-322-4237
- The American Institute of CPAs or call 888-999-9256.
Make sure the person is properly licensed and does not have complaints or disciplinary problems filed against him or her or the firm. Contact the National Association of Securities Dealer’s (NASD) visit their website or call the BrokerCheck Hotline at (800) 289-9999 to find out this information.
Learn more about 10 Questions to Ask When Choosing a Financial Planner from the Certified Financial Planner Board of Standards.
Additional Resources
- Medicare Long-term Care Planning Tool from the federal Medicare website will guide you through some questions about your situation (entirely confidential) and then offer personalized information to help you learn more about what long-term care services are available, how much you can expect to pay for long-term care, and what financing options are available to support your long-term care costs.
- An extensive section from AARP on investing and retirement planning.
- How You Will Pay for Your Care – a concise chart from Medicare.com comparing different payment options.
- National Clearing House for Long-Term Care Information from the US Department of Health and Human Services on paying for long-term care.
- A Simple Guide To What Everyone Needs To Know About Money and Retirement. (PDF) a 16 page booklet from the Heinz Family Philanthropies
Find out about other available resources
- Contact the local Home and Community Services (HCS) office if state funds may be needed to help pay for services/care. Find the local HCS office.
- Call your local Senior Information and Assistance (I & A) office to find out about other programs that might help pay for long-term care. Find the local I & A office.
- Visit the BenefitsCheckUp website. BenefitsCheckUp is a comprehensive online service to screen for federal, state, and some local public and private benefits for adults ages 55 and over. BCU can help you connect to programs that help pay for prescription drugs, health care, utilities, and other needs.
