Understanding the Cost of Long Term Care
Planning for your future health care costs can be a daunting task. But a long term care event can happen at any time, and the financial and emotional strain that comes with it can have an impact on you and your loved ones. By educating yourself about long term care now, you’re better prepared to make care choices in the future. One of the most important parts of planning for long term care is figuring out how to pay for it.
Know the cost of care
Research shows that 7 out of 10 people (1) will require long term care services in their lifetime. The cost of this care varies depending on the type of care you receive, the place it's provided, and where you live. For example, the national average cost for a semiprivate room in a nursing home is $92,710 (2) per year.
Many people think that long term care is covered by traditional health insurance plans. It’s important to know that long term care expenses are generally not covered by the Federal Employees Health Benefits (FEHB) Program, TRICARE, or TRICARE For Life. While Medicare covers some care in nursing homes and at home, it does so only for a limited time and is subject to restrictions.
The Federal Long Term Care Insurance Program (FLTCIP), designed specifically for federal family members, can help protect your income, including pensions and annuities, plus your savings, or other investments, from being exhausted by long term care costs.
The U.S. Office of Personnel Management has worked closely with John Hancock to ensure the insurance coverage under this program offers the benefits and features that are most valuable to members of the federal family and provides a range of financial solutions to help you plan for the future. The FLTCIP’S comprehensive coverage includes:
long term care services in a variety of settings and your choice of caregiver
a stay-at-home benefit that supports care in your home, helping you maintain your quality of life in familiar surroundings
care coordination services for all enrollees and their qualified relatives
Build a FLTCIP plan
There’s no one-size-fits-all when it comes to long term care insurance, and it’s no secret that planning for your future care can be overwhelming. The FLTCIP’s Guided Planner is designed to simplify the process of building a FLTCIP plan that’s right for you.
Visit LTCFEDS.com/employees to begin your journey and build a customized plan that’s right for you.
1. United States Census Bureau. “By 2030, All Baby Boomers Will Be Age 65 or Older,” census.gov (accessed March 2021).
2. John Hancock Life & Health Insurance Company, “John Hancock 2018 Cost of Care Survey,” conducted by Long Term Care Group, Inc., December 2019.
The Federal Long Term Care Insurance Program is sponsored by the U.S. Office of Personnel Management, insured by John Hancock Life & Health Insurance Company, under a group long term care insurance policy, and administered by Long Term Care Partners, LLC.