You may have enough on your hands taking care of today’s health care costs. But down the road, you’re likely to face additional bills. Seven out of 10 people will need long-term care services after they turn 65.

It’s important to investigate the costs of such care and make a plan to pay for them.

Cost of Care
The costs of long-term care vary depending on where you live, the kind and amount of care you need, and which provider you use.

Based on 2008 national averages, a year of care in a semiprivate nursing home room costs $68,000. Care in your home, with a home health aide providing personal care three times a week, can set you back $18,000 a year.

Paying for Care
Many Americans mistakenly believe Medicare or Medicaid will pay for their long-term care. However, Medicare only pays for care for short periods—and it doesn’t cover those who need help with activities of daily living. That accounts for most of the services Americans need.

Likewise, Medicaid only pays for care if you need a lot of help to function and have already used up all your resources.

The result? People who have at least a moderate income and assets will most likely be paying for care on their own.

Long-Term Care Insurance
Many Americans buy long-term care insurance. Whether you should join them depends on your age, general health, overall retirement financial plan, income, and assets.

For example, if Social Security is your only income, you may not be able to afford the premiums. However, if you have a lot of assets and don’t want them to be depleted paying for care, such a policy may be a good idea.

On the horizon: The health care reform law passed in March created a new national voluntary insurance program to help people pay for longterm care at home. After a five-year vesting period, people will receive an average of $50 a day to purchase nonmedical services.

Finding Help
Putting together a financial plan for your retirement and future medical expenses can help you protect your assets. If you don’t feel comfortable drawing up a plan, you can find a financial planner by asking friends and family for recommendations or consulting these organizations:

• The National Association of Personal Financial Advisors, www.napfa.org
• The Financial Planning Association, www.fpaforfinancialplanning.org
• The American Institute of Certified Public Accountants, www.aicpa.org

The future may be unknown, but having a vision and plan for the years ahead can provide peace of mind.

For more information, visit the National Clearinghouse for Long-Term Care Information at www.longtermcare.gov.

© StayWell Custom Communications. Information is the opinion of the sourced authors and organizations. Personal decisions regarding health, diet, and exercise should be made only after consultation with the reader's own medical advisers. This material may not be reproduced for redistribution without written permission from StayWell Custom Communications.