Medicare vs. Long-Term Care Insurance: The Major Differences

Medicare vs. Long-Term Care Insurance: The Major Differences

Many people make the mistake of thinking that Medicare will pay both short and long-term care benefits. Here’s the main difference:

  • Medicare provides health insurance to those aged 65 or above. 
  • Long-term care insurance helps cover and pay for medical costs associated with long-term care (LTC).

These are very similar; many people don’t know the difference between what’s covered by long-term care insurance or Medicare.

That’s why we’re talking about what’s different between Medicare and long-term care insurance.

What Is Medicare? Does It Pay For Long-Term Care?

Medicare was first signed into law in 1995 and is a government program that provides health insurance and other related facilities to individuals.

Medicare is a federal health insurance program that helps in funding hospitals and medical care. It benefits and provides health insurance to older people aged 65 or above and some younger folks with disabilities. 

The Medicare policy is divided into 4 parts: 

  1. The first parts A and B, provide hospital aid and Medical Insurance. 
  2. The other two parts C and D, provide flexibility and prescription drugs. 

It’s easy to assume that Medicare includes long-term care, and it will help with the costs… But that’s not the case. Medicare does not pay for your long-term care. 

While original Medicare covers some long-term services, not all long-term benefits fall under Medicare plans and coverage.

Significant Differences Between Long-Term Care and Medicare Coverage

Now that we’ve covered that Medicare DOES NOT cover your long-term care let’s focus more on the difference between long-term care and Medicare.

What Does Long-Term Care Insurance Cover?

Long-term care (LTC) is a vast set of paid and unpaid services for individuals who need assistance because of chronic health issues. 

LTC insurance pays for custodial care and skilled care, usually given to people aged 65 or above. Skilled care is when the provider is professionally licensed with specialties. 

Custodial Care, also known as non-medical care, refers to personal care given to help individuals with activities of daily living (ADL), which includes dressing, bathing, helping them in and out of bed, and with standing and walking. This long-term care doesn’t usually need any professional medical training.

Skilled and custodial care requires a professional and skilled nursing assistant. The provider must hold proper training and licenses. 

What Does Medicare Cover?

Medicare provides skilled nursing facilities, In-home and Hospice care. They also offer free resources and financial sources to Medicare patients, such as non-profits, foundations, and the Veteran’s Administration.

Get Long-Term Care Insurance From National Educational Services

By having long-term care insurance, you’re saying to your family and loved ones, ‘I’ve got you.’ 

Now is the time to invest in long-term care insurance. It will protect yourself and your family financially when health issues pop up or if they’re unable to care for you in old age.

Without long-term care insurance in place, you could burn through your life savings or have no choice but to rely on your family when health issues arise. 

Get affordable long-term care insurance from National Educational Services! 

We can help you develop a retirement strategy and get the insurance coverage you need.

Reach out to us below, and we’ll be in touch with you soon.

To keep learning about long-term care, check out this article titled Why Educators Need Long-Term Care Insurance on NES blog.

Speak With An Educational Consultants at National Educational Services

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Since 1982, National Educational Services has been servicing the financial needs of educational employees.

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