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Most Common Misconception About Medicare, Retirement and Asset Protection

Medicare and asset protection

In my practice as an Asset Protection Attorney, I work with many people of various ages at various stages of preparing for retirement.

Exploring Medicare – how it works and what is covered – common misconceptions surface. These misconceptions put people at a disadvantage in terms of their asset protection, if not cleared up. To that end, I hope the following helps as a jumping off point to clarity in one very important area.

There is one most common misconception I encounter, no matter what age group I’m in a conversation with regarding retirement plans. It’s that most people believe that Medicare or other regular health insurance will cover the cost of long term care, either at home or in a nursing home.

Nothing could be further from the truth.

A well thought-out retirement plan includes long-term care considerations. Such a retirement plan should also be clear and easy to understand.

Should long-term care become necessary, this plan becomes the foundation of the steps that must be taken.

Most people are not aware that the most that Medicare will pay for in a nursing home is 20 days in full and up to 80 days in part for a total of 100 days. But that is provided only if the nursing home stay is immediately preceded by at least a three-day hospital stay. Furthermore, the nursing home must be a skilled nursing home and not just custodial.

Want someone to provide custodial care on a daily basis for yourself or your loved one? Then, you cannot depend on Medicare to cover it.

Long-term care insurance is the only source of payment for custodial care services, outside of Medicaid.

One must have little or no resources and/income for Medicaid coverage. If you have any assets, those will be the source of payment if you do not have long-term care coverage.

It is impossible to predict the need for long-term care.  However it should be a part of every retirement and asset protection plan.

The sooner you begin discussing these plans with a qualified financial planner or Asset Protection Attorney, the more confident you will feel in the face of any aging related health issue.