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A long stay in a nursing homeAn 82-year-old with dementia can no longer live alone. She needs help with bathing, dressing and meals, and will live in a nursing home for the foreseeable future. She has Medicare.
Does her health coverage pay for it?
Correct. Not quite. This is one of the most expensive misunderstandings in American health care. Medicare and private health insurance do not pay for long-term “custodial” care, meaning help with daily activities. Medicare covers a limited period of skilled nursing care after a qualifying hospital stay, up to 100 days per benefit period with daily charges after day 20. Ongoing nursing home care is paid from personal savings, long-term care insurance or, once assets are largely spent, Medicaid.
More: 5 Health Insurance “Facts” That Can Cost You More Than You Think