Consider the limited government support for long-term care expenses:

• Medicare - Medicare covers only 14% of long-term care costs, and certain conditions apply. For those who qualify, coverage is typically offered on a short-term basis only. (Centers for Medicare and Medicaid Services (CMS), Office of the Acutary, National Health Statistics Group, Personal Home Care Expenditures, 2001.
• Medicaid - Medicaid coverage is available only if you're willing to spend down your assets to the state required level. And even then, it may not cover most care at home - where many people would prefer to be when receiving care.*

*California refers to Medicaid as "Medi-Cal"

Most people are not financially or emotionally prepared to handle the high costs of long-term care. In 1999, spending for home health care was about $134 billion. Individuals needing care, along with their families, paid for over 25% of this amount ($34 billion) out of their own pockets. (Department of Health and Human Services, 2001.)

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