Final answer:
True, basic health insurance and Medicare often do not cover long stays in nursing homes or assisted living; Medicaid may, but depends on state eligibility. The statement is true.
Step-by-step explanation:
It is true that basic health insurance policies and Medicare often will not cover long-term stays in nursing homes or assisted living centers. While Medicare may pay for a short-term stay in a skilled nursing facility following a hospital stay, it is not designed to cover long-term custodial care.
Medicaid, on the other hand, does pay for the largest share of long-term care services, but eligibility is determined by income and varies by state.
Given the demographic trends indicating an increase in the population of elderly Americans, there is growing concern over the financing of these types of services, as well as Social Security and Medicare overall. The statement is true