Some people are under the impression that Medicare will take care of all their health care needs once they reach the age of 65, but this is not the case when it comes to long-term care. And when you take a look at how high these expenses are right now coupled with the fact that they’re steadily rising, you can’t help but be somewhat concerned.

Each year the MetLife Mature Market Institute releases a survey that puts long term care costs under the microscope. In 2010 the average charge for a year in an assisted living community in the United States was just under $40,000; this represents a 5.2% increase over 2009 costs. The national average for a year-long stay in a private room in a nursing home in 2010 was $83,585, which is a 4.6% increase over 2009.

There are those who say that “this will never happen to me,” but the statistics tell a different tale. Approximately 40% of people who reach the age of 65 will require long-term care at some point in their lives. Once you reach the age of 65 there’s a 50-50 chance that you’ll live to be older than 85. One in four Americans 85 years of age and older are residing in nursing homes, and the average length of stay is 2 1/2 years.

These are numbers that will certainly get your attention, but the good news is that although Medicare will not cover these expenses Medicaid will if you arrange your assets wisely. Medicaid is only available to people with less than $2,000 in assets, but these are “countable” assets. Your car, your house, and your personal possessions don’t count. For married couples, the healthy spouse is entitled to retain his or her share of the countable assets as well without impacting the Medicaid eligibility of the institutionalized spouse.

Medicaid could be the solution for many individuals in need of long-term care, but because the legalities are so complex it is an intricate matter. The wise course of action is to engage the services of an experienced Mississippi elder law attorney to assist you in constructing an intelligent plan that optimizes your resources while preserving your Medicaid eligibility.

Tags: Elder Law, Long Term Care, Medicaid