geisinger medicare supplemental

When shifting circumstances bring unexpected elder care costs, they also bring the urgency of having to make short and long-term financial decisions. It is at this point that one must confront the reality of the exorbitant costs of care for the chronically ill and elderly.

In 2007, the annual cost of long-term care in the US averaged $77,000. While many people are woefully unprepared to handle these high costs, many others have serious misconceptions about the real costs of long-term care and how much they will have to pay.

Consider these surprising facts:

* Medicare only covers 8% of assisted living and in-home care costs. Medicare, Medicare Part D and Medicare supplemental plans will only cover short-term and medically required costs.

* The average cost of nursing home care is approximately $300 per day.

* In 2007, in-home care costs increased by 12%.

Formulating a Financial Strategy

Paying for long-term care is a significant expense. You'll want to consider all of your options before committing to a plan. To start with, ask yourself the following:

* What is the present income stream?

* How much will the expenses be, considering all alternative solutions?

* How can you bridge the discrepancy between present income and future costs?

* What financial preservation strategies are available?