As the baby boomers age, they will need more medical services and there is great potential for increasing stress on resources. The current system of long-term care financing may be unsustainable without raising taxes to politically unacceptable levels.

Therefore, Minnesota Board on Aging encourages Minnesotans to investigate options for long-term care insurance.

What is it?
Long-term care insurance assists you in paying for your long-term care.

Why do I need it?
Long-term care is expensive – in 1999, it averages $26,000 a year. Current estimates indicate less than 10 percent of elderly can afford to pay for even a year of nursing home care.

Aren’t I covered under my health insurance?
Probably not. Many health plans – including Medicare – cover some skilled nursing care, but only for short periods of time and under limited conditions.

What about Medical Assistance?
Medicaid – known as Medical Assistance in Minnesota – is the primary payer of long-term care, but applicants must impoverish themselves in order to receive benefits.

What does long-term care insurance cover?
Long-term care coverage usually pays for skilled, intermediate or custodial care in a nursing home. It may cover additional home and community based services, especially those types of services that may not be covered by medical assistance. Additional services may include nursing and rehabilitative care in addition to personal care needs in the activities of daily living.

Where can I get more information?

• The State of Minnesota Department of Commerce
• The Administration on Aging
• Elder Web