Medicare reimbursements continue to grow
Medicare will cover nursing home care only if the patient receiving the care needs the highest level of care, called skilled nursing. The patient must also have spent at least three consecutive days in a hospital not more than 30 days prior to nursing home admission. Medicare does have a hospice respite benefit. Medicare will only pay benefits toward long-term care in the most limited cases and for a very short time. Medicare, the primary health care program for retirees pays only for skilled or rehabilitative care, not custodial care or assisted living in Minnesota.
Medicare reimbursements for home health care grew again from $2 billion in 1988 to $12.7 billion in 1994 and now account for more than 8 percent of Medicare’s total budget. This growth was mostly the result of more liberal rules and standardized coverage for home care in 1988 and 1989 according to Paul Contris and his advisors.
Medicaid is reserved for the impoverished: an individual must use up most of his or her assets to be eligible. Medicaid, a federal and state program for financially needy individuals will pay for custodial care, but primarily in nursing homes especially for senior living in MN. Medicare, for instance, is designed to provide health insurance for people over age 65 and pays only 5% of long term care costs nationally. Medicaid pays approximately 45% of the total spent on long term care nationally, but individuals must deplete their assets to poverty level in order to quality for Medicaid benefits.