Planning how to pay for long-term care is one of the first questions families ask. The good news is that there are several options, and many families use a combination of them. Here is an overview to help you get started.
Quick takeaways
- Families usually combine several sources to pay for long-term care.
- Common options include personal savings, long-term care insurance, Medicaid and veterans benefits.
- Medicare can cover short-term skilled nursing and rehab, while Medicaid is a main source of support for long-term nursing home care.
- Planning early, and asking for help, gives families more choices.
Personal savings and private pay
Some families pay for care using savings, retirement income, pensions or other assets. Others use private pay for a period of time before another source, such as Medicaid, begins. A financial advisor can help you think through the best approach for your situation.
Long-term care insurance
Long-term care insurance is designed to help pay for care such as nursing home care, assisted living and in-home care. If you or a loved one has a policy, look for:
- What types of care and settings are covered
- The waiting period before benefits begin
- How to file a claim and what paperwork is needed
It is worth calling the insurance company early, since claims can take some time to process.
Medicaid
Medicaid is a major source of support for long-term nursing home care for people who meet its financial and medical requirements. Each state runs its own program. Our guide to Medicaid and nursing home care in Maryland explains how eligibility and applications work here.
The earlier families start planning, the more options they usually have.
Medicare
Medicare can cover short-term skilled nursing and rehab after a qualifying hospital stay. It is not designed for ongoing long-term care. Read Does Medicare cover nursing home and rehab care? for details on how it works.
Veterans benefits
Veterans and, in some cases, their spouses may qualify for VA long-term care programs or benefits that help with care costs. A local veterans service officer can help you understand eligibility and apply.
Other options
- Life insurance policies may offer living benefits or conversion options.
- Home equity may be part of a family’s plan.
- Community programs can help with in-home support and respite, which may delay the need for full-time care.
Getting help with planning
You do not have to figure this out alone. In Maryland, Maryland Access Point connects families with long-term care resources, and the State Health Insurance Assistance Program (SHIP) offers free Medicare counseling. An elder law attorney can help with legal and financial planning. A facility’s admissions team can also explain which coverage they accept and help with next steps.
For a broader look at care settings, see senior care options explained and what is long-term care?
Frequently asked questions
Who pays for long-term care?
Long-term care is commonly paid for through a mix of personal funds, long-term care insurance, Medicaid for people who qualify and, for eligible veterans, VA benefits.
Does long-term care insurance cover nursing home care?
Many long-term care insurance policies cover nursing home care, assisted living and home care. Benefits, waiting periods and limits vary by policy, so review yours or call the insurer.
Does Medicare pay for long-term care?
Medicare can cover short-term skilled nursing and rehab after a qualifying hospital stay. It is not designed to cover ongoing custodial care. Medicaid and other sources are typically used for long-term care.
Can veterans get help paying for long-term care?
Yes. Depending on eligibility, the VA offers several long-term care programs and benefits. Contact the VA or a veterans service officer to learn what applies.
Where can I get help planning?
Maryland Access Point, the SHIP program for Medicare questions, elder law attorneys and a facility’s admissions team can all help families understand their options.
This article is general information, not medical, legal or financial advice. Coverage rules can change, so confirm details with Medicare, your plan or your care team.
