HOME > LONG-TERM CARE > WHO PAYS FOR LONG-TERM CARE

For those who buy adequate Long-Term Care Insurance (LTCi), their insurance policies pay for most of their LTC costs. For those who don't or cannot buy LTCI, the individuals and their families pay out of their own pockets. Then, once the person has spent nearly all of his or her personal resources on long-term care, the elderly person goes on welfare. In California, you may apply for Medi-Cal (California's version of the Federal Medicaid program) once your non-exempt assets have been spent down to about $2,000.

Home Care
How long does it take for an older person or a couple to become impoverished after beginning to receive extensive home care? 21% of single elderly persons living alone become impoverished almost immediately; 48% become impoverished within six months; and 57% become impoverished within one year of receiving extensive home care. For couples, the statistics are a little better: 22% become impoverished within six months, and 33% within one-year.

Nursing Home Care
Nursing home care takes an even bigger toll. 58% of singles become impoverished within six months of entering a nursing home; 67% within one year. For couples, 34% impoverish themselves within six months; 46% are impoverished within one year.

Medi-Cal
Most Californian's spend their sunset years in an impoverished way. The California game plan so far has worked like this: Spend-down your own assets until you are broke, then go on Medi-Cal. 64% of all nursing home costs are paid for by Medi-Cal. In approaching long-term care like this, Californians have sacrificed their independence.