Free Quotes

What is Long Term Care Insurance?

Who Needs Long Term Care Insurance

Long term care insurance is important to those who are over 50, the reason why it is so important is because of the huge costs involved for a patient and their family if they have the need for long term care.

Statistically around 40% of Americans over the age of 65 will need some sort of long-term care, such as nursing home due to disability or illness that is prolonged. Without long-term care insurance, a patient with prolonged health related problems would not get the care that they need from Medicare.

What is the Prospective Payment System and How Does It Work

Since the new program called Prospective payment system, was introduced in 1983 that stopped reimbursing hospitals for the total cost of treatment and began paying a set fee. Hospitals no longer keep a patient regardless of their need for longer care. Once the Medicare payments stop, the patient is released from the hospital as soon as possible.

Once released a patient who needs more care will have to finish their recovery in a nursing home or in their own residence. Since Medicare pays only a small fee of about 2% for these services the rest of the bill is left for the person who is ill, or their families to pay.

Copyright © 2006. LongTermCareInsuranceTips.com
All rights reserved.