When my father was placed in an assisted living facility for the first time I decided to review his options with Medicare. As long as we have doctors in the future I knew it would be best if I began researching what advantages a supplemental policy to Medicare could do for me and quickly found out one BIG ONE. If you know anything about Medicare it’s that it covers the first 20 days of a skilled nursing home facility at full cost. From day 21-100 you only have to pay a copay.
It pays to have a Medicare supplement insurance
BUT WAIT, the copay is $128 a day. That would be $10,240 out of your pocket UNLESS you have good Medicare Supplement Insurance for days 21-100. I ended up choosing the AARP supplemental insurance at the time. 6 months later my dad ended up going in a nursing home and now has been in one continually for the last 20 months. The extra $50 I paid for the supplement covered MUCH more than I actually paid and has continued to pay part of the bills for needed x-rays and hospitals bills since then.
I would also recommend a long term health care policy when planning for your retirement, at least in Florida, I don’t know about other states like in Texas. My dad went the cheap route and only got a policy that pays for $140 a day with a $250,000 cap to it. I’m glad he got it because a standard nursing home in Northwest Florida runs about $190 a day (Over $69,000 a year). Most people don’t think about these expenses when planning for retirement but they can add up quickly. Medicare will pay for a nursing home ONCE you’ve exhausted all of your personal assets.
For more info checkout the article Medicare Coverage at a Skilled Nursing Facility.
Great advice! But I personally believe that having Medicare supplemental insurance won’t be sufficient enough to address all the costs related to long-term care as there are still limitations to it. Nothing beats the coverage provided by long term care insurance.
You are correct – Medicare supplemental insurance fills in the gaps of Medicare, but neither provide long-term care. You will have to purchase additional insurance for that.