MetLife survey of consumers shows confusion over paying for long-term care

Although Americans are aware of the debilitating costs of long-term care, few seem to understand how to pay for those services, according to a study by MetLife Mature Market Institute. Fully 85% of the 1,021 individuals ages 40 to 70 polled for the 2009 MetLife Long Term IQ survey said that they know that a variety of causes such as Alzheimer's disease, accidents and chronic conditions could lead to long-term care, but just 37% said that they know most services for such maladies are administered in the home. Others incorrectly thought that most of the care was given in an assisted-living facility (28%) or in a nursing home (32%). The survey was conducted via the Internet during February and March. Respondents were also shaky in terms of their understanding of the policies and programs that cover long-term care. Just 34% of the participants said that they know that health coverage, disability insurance and Medicare won't cover LTC expenses. Although Medicare, Medigap and private health care may cover some long-term needs, the extent of that coverage is limited. For example, those programs might pay for care following a hip fracture, but they won't cover continuing daily care needs. Most of those surveyed were able to discern fact from fiction when it came to qualifying for Medicaid. Fully 64% of those surveyed said that they know that the immediate transfer of assets to family members wouldn't allow them to qualify for Medicaid coverage for long-term care. Interestingly, few respondents said that they think that financial advisers are a useful source of information on long-term care. Exactly half of the polled individuals said that federal programs are a useful resource, and 61% felt the same way about LTC service providers. But just 17% said that about advisers, ranking them below family and friends (45%) and insurance company representatives (40%).