What If Medicare Doesn't Cover the Care You Need?

What If Medicare Doesn’t Cover the Care You Need?

More than a third of middle-class households (39%) plan to rely on Medicare to pay for long-term care even though Medicare benefits do not cover long-term care expenses. Yet many Americans may be surprised to learn that Medicare was never designed to serve as a long-term care program.

Long–Term Care Vs. Medicare

Medicare is a health insurance program for older Americans. It helps cover hospital stays, physician services, and rehabilitation. However, it generally does not pay for ongoing long-term care services like assistance with bathing, dressing, eating, or other daily activities that many people need as they age. Most long-term care costs are not covered by Medicare and must be paid through personal savings, Medicaid (for those who qualify), or private insurance.

The problem is that long-term care and medical care are not the same thing. This difference can have significant financial consequences for the 80% of adults over age 65 who will need some form of long-term care at some point in their lives.

Long-term care insurance provides important coverage and is designed to help people cover these costs.

Hybrid Life Insurance Policies

In addition to standalone long-term care insurance policies, hybrid life insurance policies with long-term care benefits are another way to prepare for future care needs. These policies combine life insurance protection with coverage that can help if long-term care is needed later in life. For example, if you had a permanent life insurance policy with a long-term care rider, you could use part of your policy’s death benefit to help pay for qualifying long-term care expenses. If long-term care is never needed, the life insurance benefit remains available for loved ones.

These products have become increasingly popular because they help address a concern that many people have about traditional long-term care coverage, which is paying for a benefit they may never use. Hybrid products can provide protection for long-term care needs while preserving the life insurance benefit if care is never needed.

Solutions for More Americans

Our mission is to expand access to clear information and help more Americans understand the financial tools available to them. As Congress continues to address the affordability challenges for most American families, it is important to prioritize long-term care needs for our aging.