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What Type of Insurance Do I Need for Assistant Living Expenses?

Statistics from the National Center for Assisted Living show as many as 70 percent of people who turn 65 require assisted living services within any given year. The costs associated with assistant living are typically more than a senior citizen can afford. Insurance options provide a needed financial cushion when proper arrangements are made ahead of time.

  1. Long Term Care Insurance

    • Long term care (LTC) insurance plans cover many of the services provided by an assistant living facility or service. Some of these services include 24-hour supervision, room and board, personal care needs and medical care. These services benefit people who are too healthy for nursing home care but are no longer able to maintain a household on their own. LTC plans are available for purchase at any age and cost considerably less when purchased at a young healthy age, according to the financial resource website Bankrate.com. People who wait too long to get LTC coverage risk being ineligible due to age or poor health. On average, an LTC policy can run anywhere from $1,500 to $9,000 a month depending on a person's age and health at time of purchase.

    Partnership Plan Policies

    • Partnership policies combine the benefits of long term care insurance with Medicaid assistance. According to Bankrate.com, these policies are designed for people who outspend their long term care coverage and can't afford to pay it themselves. With traditional Medicaid assistance, assets in excess of $2,000 must be "spent" before Medicaid coverage kicks in. In effect, partnership policies protect a person's assets up to a certain amount provided an active LTC plan exists. Partnership plans are funded by state and federal governments that work in conjunction with LTC insurance providers. Most states within the U.S. administer a partnership program, however, not all insurers participate in the program.

    Medicare and Medicaid

    • Medicare and Medicaid are both federally funded health insurance programs, according to the National Senior Citizens Law Center. Medicare benefits apply for people who've paid into the fund via payroll taxes garnered from years of employment. Medicaid benefits apply for low income individuals who are unable to cover the costs of health insurance. Medicare covers qualified health care costs such as nursing care and any medically necessary services, however room and board costs are not covered. In addition, Medicare coverage only applies for nursing services when a person is recovering from an injury or illness, meaning day-to-day, ongoing care is not covered. Much like Medicare, Medicaid only covers medically necessary services whether a person lives at home or in an assisted living facility. And while both programs are federally funded, state governments administer Medicaid benefits so coverages can vary from state to state.

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