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Planning Beginner: Planning for Long-Term Care

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1.
Long-term care always requires a medical setting.
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False. Long-term care is distinct from healthcare and therefore does not always require a medical setting.
2.
Some people who are capable of paying for their own long-term care choose to rely on Medicaid instead.
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True. People like this arrange their financial affairs so that they qualify for Medicaid. As a financial strategy, this is fraught with problems.
3.
Long-term care applies only to care provided by a licensed nursing home.
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False. This was once true, but today it applies to all care provided to the elderly in support of their activities of daily living, regardless of where provided.
4.
Medicare services are state-administered, having strict income and asset limitations.
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False. It is Medicaid services that are state-administered, and recipients have strict income and asset limitations.
5.
Persons with sufficient income to pay for their long-term care need not consider long-term care insurance.
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False. Those who have sufficient assets to self-pay LTC costs may wish to preserve at least a portion of their estates in order to leave something to their heirs.