Long-term care can be quite costly. There are three ways that people generally pay for long-term care services, including:

  • Personal funds – Nursing home residents often start to pay for services by using their private funds.
  • Private financing options – Long-term care insurance is another way to finance long-term care.
  • Government health insurance programs – such as Medicaid and Medicare.

Medicaid is a joint federal and state program that helps with medical costs for some people with limited income and resources. Medicaid will start to cover care once the other assets have been expended.

Medicare is less often used to pay for long-term care. Sometimes, Medicare will pay for part of a patient’s first 100 days in a long-term care center, depending on if he or she had a qualifying hospital stay and other specific requirements. You can read this article to Learn more about Medicare health plans or review these Fast facts about Medicare every senior should know.

Regardless of the payment method used, it is great to plan ahead for financing long-term care as early as possible.