Question

Long-term care can be extremely expensive. Which of the following statements is/are correct regarding the cost of long-term care?

1. Medicare is a practical way to pay for long-term care.
2. Medicaid planning (transferring assets in order to qualify for Medicaid) should be used by advisors to assist clients in meeting their long-term care goals.

A. 2 only
B. 1 only
C. Neither 1 or 2.
D. 1 and 2 only.

Answer 1

The correct statement regarding the cost of long-term care is D. 1 and 2 only. Medicare is not a practical way to pay for long-term care. Medicaid planning can be used by advisors to assist clients in meeting their long-term care goals.

Step-by-step explanation:

The correct statement regarding the cost of long-term care is D. 1 and 2 only.

Medicare is not a practical way to pay for long-term care. Medicare is a government health insurance program primarily for people who are 65 or older, and it does not cover most long-term care services. It may cover a limited amount of skilled nursing care in certain circumstances, but not custodial care or assistance with daily living activities.

Medicaid planning can be used by advisors to assist clients in meeting their long-term care goals. Medicaid is a joint federal and state program that helps with medical costs for some people with low incomes and limited resources. Eligibility requirements for Medicaid vary by state, but transferring assets to qualify for Medicaid is a common strategy used to cover long-term care costs.