Skip Navigation

Return to non-screen reader version

Skip to Global Site Links

Start Content
Long-Term Care Home    |    Steps to Choosing Long-Term Care    |    Types of Long-Term Care    |    Paying For Long-Term Care


Paying For Long-Term Care

  Overview Government Programs Private Insurance Home Equity Other Options Resources  
 

The cost of long-term care can vary quite a bit depending on what kind of care you need, where you get the care, and where you live. The chart below shows a comparison of available financing options:

Financing Option
Only Available for Long-Term Care Costs
Remaining Funds Available to Heirs
Rate of Asset Accumulation
Eligibility Requirement
Risk of Insufficient Funds
Cost
Family Support and Caregiving
No
No
None
No
Moderate

-- Family members may be unable/unwilling to provide care
You pay for services that family members are unwilling to provide
Personal Savings
No
Yes
Variable
No
High

-- Long-Term Care costs can exceed your personal savings
You are responsible for creating private savings
Long-Term Care Insurance
Yes
No
Fixed
Yes
Moderate to Low

-- Long-Term Care costs could exceed original coverage amount
Monthly premiums for the life of the policy
Limited Long-Term Care Insurance
Yes
No
Fixed
Yes
Moderate to Low

-- Long-Term Care costs could exceed original coverage amount
Large one-time or short-term monthly premium
Life Settlement
Yes
No
Fixed
Yes
Moderate to Low

-- Amount received from benefit may not pay all long-term care costs
None
Viatical Settlement
Yes
No
Fixed
Yes
Moderate to Low

-- Amount received from benefit may not pay all long-term care costs
None
Accelerated Death Benefit
Yes
No
Fixed
Yes
Moderate to Low

-- Amount received from benefit may not pay all long-term care costs
None
Reverse Mortgages
No
Yes
Variable
Yes
Moderate

-- Amount received from benefit may not pay all long-term care costs

-- Home maintenance costs still exist
Processing and origination fees to establish mortgage
Continuing Care Retirement Community
Yes
Yes
Variable
Yes
Low

-- Additional care provided as needed in CCRC assisted living or nursing facility
High purchase price and fixed monthly payment required of CCRC property
Veterans Benefits
No
No
None
Yes
Moderate to High

-- Amount received from benefit may not pay all long-term care costs
None
Medicare
No
No
None
Yes
Moderate to High

-- Amount received from Medicare may not pay all long-term care costs
Co-payments and deductibles
Medicaid
No
No
None
Yes
High

-- Amount received from Medicaid may not pay all long-term care costs

-- Recovery of Medicaid may be made against estate
You pay for services not covered by Medicaid
PACE
Yes
No
None
Yes
Moderate to High

-- Amount received from benefit may not pay all long-term care costs
You pay for services not covered by PACE

Page Last Updated: April 10, 2007

Link to top of pageTop of page

 

Link to HHS Link to HHS
  Home |  FAQs |  Return to non-screen reader version |  Español  |  Mailing List
 
 
    The Official U.S. Government Site for People with Medicare
 
   
MyMedicare.gov   Opens in a new window - Click this padlock image to see more information about MyMedicare.gov security
Secure Sign In
This is an optional and free service
learn more | sign up

Prescription Drug Plan

NEW! Medicare & You 2009

Am I Eligible?

Medicare Billing 

Medicare Appeals 

Long-Term Care 

Plan Choices 

Preventive Services 

Personal Health Records 

Address Change

Replacement Card

Medicaid Enrollment

Provider Information

Ombudsman 

Emergency

Glossary

Privacy Practices

Medicare Online Forms

Search Tools



Link to Department of Health and Human Services Website
 
Frequently Asked Questions | Contact Us |  Website Privacy | Website Policies
Freedom of Information Act | USA.gov
52
Centers for Medicare & Medicaid Services | U.S. Department of Health and Human Services