Short term rehabilitation or hospital recovery stays in nursing homes is a long term care financial risk that one doesn't hear much about. For those with somewhat limited assets who may depend on investments to generate a supplemental monthly income, a three or four month rehabilitative stay could throw personal finances into a tailspin. Given the high probability that Medicare's criteria for nursing home reimbursement will become even more strict, this risk must also be addressed. The cost of home health care can be more or less depending on the type and amount of care provided. If it is one's preference to remain at home even in the face of higher costs, a sound plan taking this into consideration is crucial.
Many people end up in nursing homes or assisted living because home care becomes unaffordable.
More and more insurance companies are offering long term care policies which will become a major source of funding in the future. Cash value life insurance with long term care benefits are also available. For policy basics, see how long term care policies work. Medical Assistance 3. Long term care insurance For those with assets, a combination of private funds and long term care insurance is the most viable way to address the risk of long term health care.