Long term care refers to a variety of services designed to meet health or personal care needs over an extended period. As Americans continue to enjoy longer lifespans, the need for long term care grows. According to statistics, about 70% of those turning 65 today will need some type of long term care services in their lifetime. While the topic is difficult to consider, advance planning is crucial to ensure one receives the appropriate level of care as needed. This article explores the key aspects of long term care including different care settings, financing options, and the importance of advance planning.

Types of Long Term Care Settings

Long term care can take place in a variety of settings depending on an individual's particular needs and preferences. Some of the most common long term care settings include:

Home care: For those able to live independently at home with some assistance, home care offers services to help with activities of daily living like bathing, dressing, and meal preparation. Care can be provided by home health aides or family/friend caregivers.

Assisted living facilities: Assisted living communities provide private apartments or rooms along with amenities and services like meals, housekeeping, transportation, and help with personal care tasks. They aim to support greater independence than a nursing home.

Nursing homes: For individuals requiring 24-hour skilled nursing care, supervision, or rehabilitation, nursing homes provide medical and health-related services. They accommodate those with significant limitations that prevent independent living.

Memory care facilities: Dedicated memory care communities provide secure, monitored housing and programs for individuals with Alzheimer's disease or other forms of dementia. Specialized training and safety protocols are a focus.

Adult day care centers: For some, daily adult day care offers services like activities, meals, and assistance during daytime hours as an alternative or addition to other long term care arrangements. Family caregivers receive needed respite.

Understanding Coverage and Costs

While the type of long term care needed varies per individual, one thing is universal - care can be extremely costly. The average annual costs in 2021 were $51,600 for a private room in a nursing home, $48,612 for an assisted living facility, and $54,000 for a full-time home health aide.Most of these costs are not covered by health insurance plans or Medicare. Some options for assistance include:

Medicaid: Medicaid covers long term care for those who meet financial and medical eligibility standards. However, many must deplete their life savings before qualifying. Medicaid may also cover personal care services at home.

Long term care insurance: Private long term care insurance can help cover care costs depending on the selected daily benefit amount and length of coverage. Policies must be purchased years in advance for reasonable premiums.

Veterans benefits: The U.S. Department of Veterans Affairs may cover long term care for eligible veterans through VA nursing homes or VA-paid home care providers.

Other resources: Individual states offer different programs for home and community-based services for low-income seniors. Life/annuity products exist converting payouts to long term care benefits.

Getting Affairs in Order

Considering one's goals and preferences for potential long term care needs is important for informed planning and decision making. Key steps include:

Research options in your area through the local Agency on Aging or AARP to understand all choices. Discuss choices with loved ones to understand their wishes.

Create legal documents like powers of attorney, living wills, advanced healthcare directives clearly stating healthcare instructions. Designate surrogates to make decisions if unable.

Explore long term care insurance or Medicaid eligibility before the need arises.

Manage finances and consider options to preserve assets for future needs - like reverse mortgages or irrevocable trusts.

Have conversations regularly with family to review preferences and make needs/expectations explicitly clear to avoid potential conflicts later.

The costs, services, and requirements of long term care can seem overwhelming. However, taking proactive steps ensures greater understanding and control over one's future. With the proper planning and information, individuals and families can make choices that meet both medical and personal needs for quality long term care.