• Use your own money to pay on a “private pay” or “self pay” basis;
• Pay with benefits from a private long-term care insurance policy that you purchased in     advance; or
• Pay with benefits from a government program, such as Medicare, Medicaid, VA benefits,     etc.

Medicare is a Federal government entitlement program that accompanies Social Security, and that generally pays for doctors and hospitals, and, beginning in 2006, for prescription drugs. Medicare does not pay for long-term custodial care. Medicare only pays for temporary stays in a nursing home for rehabilitation or recovery after an illness or injury, only following a qualifying stay in a hospital, and within certain limits.

Medicaid is a combined State and Federal government benefit program for people who cannot pay for certain kinds of needed health care for themselves. You must apply for and qualify to be eligible for Medicaid based on factors including your assets and income. Medicaid can pay for long-term nursing home care but does not pay for lesser levels of care, such as assistaed living. As Medicaid is often the only benefit available to pay for the costliest levels of care, our planning is often directed toward Medicaid eligibility to pay for nursing care.