Many people assume that it will be easy to live inexpensively during their twilight years.
You may have already crossed everything off of your bucket list at that point in terms of costly travel and adventure. Medicare will be there to handle health care expenses, and you may expect to own your own home and vehicles outright. As a result you may anticipate limited expenses.
In truth, adopting the above perspective is a trap of sorts.
What about long-term care? Medicare doesn’t pick up the tab if you must spend a considerable amount of time in a nursing home or an assisted living community.
The average length of stay for those residing in a nursing home is 835 days according to a National Nursing Home Survey. MetLife’s Mature Market Institute tells us that the average cost for a day in a private room in Indianapolis in 2012 was $237.
If you combine this average length of stay with the average charge for a day residing in a private room in our area the total cost is just under $198,000.
The $237 per day figure was accurate for 2012. Each year nursing home costs have been rising, so if you were to need this type of assistance in 10, 20, or 30 years the expense could be far greater.
Given the statistics above how do people who are not wealthy pay for long-term care? The purchase of long-term care insurance is one option, and Medicaid is a possibility because it is a government program that will pay for long-term care if you can qualify.
In fact, most nursing home care that is being received by senior citizens is paid for by the Medicaid program.
If you would like to discuss Medicaid planning with a professional by all means contact our firm at (317) 684-1100 to set up a free consultation.
Mr. Kraft assists clients primarily in the areas of estate planning and administration, Medicaid planning, federal and state taxation, real estate and corporate law, bringing the added perspective of an accounting background to his work.