| In the early 1980's Medicare started | | | | Insurance. The long term insurance |
| using a system called the diagnosed | | | | rates vary by geological location, as |
| related group of guidelines for advance | | | | well as state and local regulations. |
| payments to hospitals. This has really | | | | The premiums are costly, however, a |
| given hospitals authority and incentive | | | | person has to weigh out the advantages |
| to discharge patients very soon after | | | | and disadvantages to purchasing long |
| admission to the hospital. | | | | term care insurance. |
| The hospital gets paid the same whether | | | | Many people assume that their healthcare |
| the patient is in 3 days or 6 days. So | | | | provider will cover long term care. |
| the hospital can make more money if they | | | | Unfortunately Health care insurance |
| free up the bed space for the next | | | | covers medical bills, hospital bills and |
| patient. The problem this has caused is | | | | some prescriptions. They do not cover |
| that nursing homes have become the | | | | nursing home expenses. The same rule |
| recovery place for these patients that | | | | applies for Medicare. Medicare will pay |
| were not ready to go back to their | | | | for skilled nursing home care only for |
| homes. The problem with this is that | | | | patients that are able to fully recover |
| Medicare only pays up to 21 days of | | | | from their injuries or illnesses. Then |
| skilled nursing care. Therefore, if a | | | | the myth is that a person can always |
| patient is not recovered after the 21 | | | | fall back on Medicaid, but Medicaid is |
| days in the nursing home, then the funds | | | | for the people who fall under the low |
| come out of the patients estate, | | | | income guidelines and have little or no |
| provided they have one. Needless to | | | | assets. |
| say, it does not take long to eat up | | | | If a person can afford long term care |
| one's estate at the nursing home rates. | | | | insurance, it is highly recommended that |
| Insurance companies have just in the | | | | they purchase it when they are young, as |
| last decade recognized this problem and | | | | the rates are substantially lower. |
| now are offering Long Term Care | | | | |