Title - Facts Title - Facts

Below you will find more information related to long-term care and long-term care insurance.
  • 63% said it is "extremely or very important" for long-term care services; such as help with personal care, meals and cleaning to be available in people's homes even if they must pay more.


  • Baby Boomers are part of a 'sandwich generation,' born between 1946 and 1964. They raise their own children, often providing some informal care for their aging parents.


  • After the Boomers retire, the next generation of people is much smaller and there will be fewer people available to take care of the Boomers' needs; due in part to:

    • The healthcare industry will compete with engineering and technology growth.
    • Your children will be busy in their own careers and raising their families.
    • Most of the population growth in South Dakota will be along the I29 corridor.

  • Medicare offers and pays for a skilled care benefit for short-term care. To qualify, a person generally must:

    • Be hospitalized for 3 days.
    • Be certified as needing skilled nursing care and/or services of a licensed physical, occupational, or speech therapist.
    • Show progress in recovery.

    If you qualify, Medicare will pay the full cost for the first 20 days, and part of the costs for the next 80 days. Only a small percentage will qualify for over 20 days.


  • Educating yourself about future long-term care options will help you be in better control of your life. In addition to financial needs, questions to ask yourself during the planning process include:

    • Where and how will I live?
    • Can I make adaptations to the home to continue living there?
    • What services are available in the community?
    • What actions should I take now to plan for the future?

  • The majority of older adults live at home, and receive care by family.
    However, you should also keep in mind the following:

    • Caregivers are aging. According to a 1996 AARP survey, almost 75 percent of unpaid long-term care is provided by women.
    • Many are aged themselves and have their own health issues.
    • Newer generations of people are mobile and may not live in your community.
    • Your children may both work and look after their children, and attend their activities.
    • You may not have children or others to help support your aging needs.

  • Long-Term Care insurance can be affordable. It can be a part of your retirement investment program. In South Dakota, plans are required to pay for both nursing home and assisted living facility care. You can also choose to purchase in-home care. Some policies will even pay family members to provide care for you. There are many options, and you can select what works best for you.

  • Long-Term Care insurance is less expensive the younger you are when purchasing it. The company has time to invest your money for future needs. This is similar to retirement investing. Starting when you are young in smaller amounts provides a greater return than starting just a few years before retirement. Waiting until you have a serious health condition may prevent you from obtaining LTC insurance.

  • Long-Term Care insurance currently pays for less than 5 percent of all nursing home care. Most long-term care is provided voluntarily without cost by family members. The largest current payers beginning with the most to the least are: Medicaid, Private Pay (out-of-pocket), Medicare, and LTC insurance. With LTC insurance, you have more control over where and how you receive care.


  • You should consider LTC insurance especially if:

    • You want to protect your assets and income, and standard of living.
    • You can pay premiums without sacrificing on paying for daily needs.
    • You want to have the best choices in your future care.
    • You want some control on where and how you will live in the future.
    • You like the peace of mind knowing you won't spend down your assets quickly for a serious illness.

  • In South Dakota, the average cost of care in a nursing home is about $140 per day. That's over $4,000 a month, and over $50,000 a year. Medicaid does not pay the full cost of care, so more of the cost is paid by people paying out of their own pocket. Medicaid pays for over half of the current residents in nursing homes.