What Does Medicare Cover?

Typically, Medicare covers care that will make you better. Hospital stays, necessary surgery, preventive screenings, doctor visits, and physical therapy, to name a few. There are three types of care that are covered that are all similar to long-term care:

1.        Skilled nursing care after a three-day (or more) hospital stay. Medicare will cover the first 20 days at 100%, and days 21-100 will be partially covered. After 100 days, there is no coverage. This is why this is not considered to be long-term care. 

2.        Home health care if your doctor says you need short-term care. Generally, no more than 28 hours per week will be covered. 

3.        Hospice care is covered if you are no longer being treated for a terminal illness and a doctor certifies that you will not live longer than 6 months. 

All these types of care are short-term because you will either get better and no longer need it or pass away. 

What Doesn’t Medicare Cover? 

There is no coverage for daily custodial care, which is assistance with daily tasks such as bathing, eating, and dressing. There is no coverage for nursing homes, assisted living, or adult day programs. 

If you are concerned about needing expensive LTC as you age, it’s important to make sure it’s included in your financial plan. The two main ways to fund it are through specialized insurance or self-funding via portfolio income or selling assets such as real estate.

Regardless of how LTC is funded, incorporating it into a financial plan and stress testing that plan helps alleviate stress around these large, end-of-life expenses. If you would like to discuss LTC or any other aspect of your financial plan, don’t hesitate to reach out to us!