Final answer:
Medicare provides limited long-term care coverage, mainly for short-term services, while Medicaid covers significant portions of long-term care costs for those with limited resources. Medicaid planning involves transferring assets to qualify for Medicaid and is used by advisors to assist clients in meeting long-term care goals.Hence correct statement is option ll.
Step-by-step explanation:
Long-term care can be extremely expensive, and it's important to understand the effective means of managing these costs. Firstly, Medicare is often mistaken as a practical way to pay for long-term care, however it provides limited coverage for long-term care expenses, and is primarily designed to cover hospitalization and short-term skilled nursing care. On the other hand, Medicaid is a joint federal and state program that assists with healthcare costs for those with limited income and resources, and it does cover a significant portion of long-term care expenses. Regarding Medicaid planning, advisors do engage in asset transferring strategies to help clients qualify for Medicaid. While it might be a controversial practice, it is a legal approach used to meet long-term care goals when resources are limited.