Urgent Warning: Most Americans Misunderstand Medicare’s Long-Term Care Coverage, Face Staggering Costs
Urgent Warning: Most Americans Misunderstand Medicare’s Long-Term Care Coverage, Face Staggering Costs
A critical misunderstanding among millions of Americans regarding Medicare’s coverage of long-term care is raising alarms among retirement experts. Despite the widespread belief that Medicare will cover the extensive daily assistance many seniors eventually require, it fundamentally does not.
This pervasive misconception leaves countless individuals unprepared for the potentially staggering costs associated with aging. Long-term care encompasses services like bathing, dressing, and eating assistance, which over 80% of people will need at some point, according to the Center for Retirement Research at Boston College. Recent surveys, including one from June by Nationwide, reveal that 58% of U.S. adults wrongly assume Medicare provides this coverage.
Costs can be immense: an average assisted living facility charges $5,350 monthly, while nursing homes average $9,733. While Medicare covers some short-term nursing home stays, it generally excludes longer, non-medical ‘custodial care.’ The confusion is compounded by Medicaid, which *does* cover long-term care for those who spend down their assets, leading many to conflate the two distinct government programs.
This misunderstanding also explains the alarmingly low uptake of long-term care insurance, with only about 4% of older Americans holding policies. Experts urge immediate action: consider long-term care insurance options, shop around for care in different locations, and consult with a financial planner to proactively budget for these critical, often overlooked, retirement expenses.
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