People are often confused about the differences between Medicare and Medicaid, how to qualify and what exactly will they pay for.  Medicare is for people over the age of 65 that will cover the first 100 days of rehabilitation in a nursing home if a person is discharged from a hospital.  Medicaid is for people below the poverty line that meet medical and financial requirements to qualify for care in an approved nursing home.  Some Homecare can be covered by Medicare and Medicaid if the person meets the eligibility requirements.  Assisted Living is not covered by Medicare or Medicaid.

Private pay means a person is paying for their care with savings, investments, private insurance or a Long Term Care Benefit Plan.  When a person is private pay they can choose any form of care that they want.  If a person wants to be in Homecare or move into an Assisted Living community they can make that decision without worrying about government approvals. 

When a person converts a life insurance policy into a Long Term Care Benefit Plan the monthly payments will keep them private pay for as long as possible.  Also, there are no more premium payments required, and the amount of the monthly payments is set by the family to cover the costs of care, and can be adjusted as needs change. But, because the Benefit Plan is a Medicaid qualified spend-down, if a person exhausts their Benefit account they can then make a seamless transition over to Medicaid.  Finally, the Long Term Care Benefit Plan provides a final expense benefit to help families with funeral expenses and if there is any remaining account balance it will all go to the family.