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