According to the Genworth Cost of Cary Survey, the median price of a nursing home is $8,000 a month. Unfortunately, an average social security check is only $2,000 a month. The U.S. Department of Health and Human Services says that 70 percent of Americans will require long-term care at some time. With good planning, however, Ohio seniors may be able to cover the cost of care without sacrificing quality.
One way to plan for long-term care needs is to buy insurance. Both long- and short-term care policies could potentially fit a person’s needs. Short-term care policies can be best for those who can’t afford or don’t qualify for a traditional long-term policy. This option could also provide time for a senior to decide whether to buy a traditional or hybrid policy.
Hybrid policies combine the benefits of long-term care coverage with a death benefit. If an individual doesn’t use the policy while alive, it can be passed on to a beneficiary. Using an IRA to pay for medical costs can also make it easier to pay for care without draining assets. This is because it will act as a tax-free health savings account after taking into account medical expense deductions allowed on itemized tax returns.
A person’s quality of life may improve based on the type of medical care that he or she receives. By engaging in long-term care planning, one has greater control over where treatment occurs or who oversees it. This may make it possible to receive treatment in a timely manner, which could minimize any damage caused by a stroke, broken bone or internal bleed. An attorney with experience in elder law could help a client plan for the future.