Abstract

This Note provides an overview of some of the options available for financing long-term care ("LTC") services that are, or may be, needed by elder Arizonans. Part II begins with a brief overview of what the term "LTC services" encompasses, and identifies the delivery settings for these services. Part Ill highlights the myth behind Medicare, the program most Americans erroneously believe covers LTC costs. The limited LTC coverage Medicare does provide is also explained, along with the very narrow circumstances in which Medicare will finance LTC services. Part IV explores Medicaid, the public assistance program that pays for most LTC services today.

The remaining sections of this Note explore the private alternatives elder Arizonans may want to consider when developing a LTC plan. Part V discusses informal delivery of LTC services by unpaid caregivers. Many people rely on this option today, whether by choice or by necessity, for some or all of their LTC services. Part VI examines an option arguably open to only the wealthiest Arizonans: self-insuring against future LTC services through private funds, particularly savings. Part VII describes Continuing Care Facilities ("CCFs"), sometimes called Continuing Care Retirement Communities ("CCRCs").

For those individuals with substantial life insurance policies, Part VIII discusses two options, so called "living benefits," that may provide additional funds for LTC. For those with sufficient income or savings, particularly those who are younger and in good health, Part IX explores a relatively new insurance product, LTC insurance ("LTCI"). Those who own a home with a fully paid or a low mortgage balance may want to consider a reverse mortgage to access their equity in the home. Part X discusses reverse mortgages and the two most popular reverse mortgage products available in Arizona today. Seniors can employ these private funding options, alone or in combination, to develop a LTC plan that uses their resources, and protects their assets, most efficiently and effectively.

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