Long Term Care is help that is needed to carry out daily activities like eating, bathing, dressing, using the bathroom etc. when you have a physical disability or cognitive impairment. This kind of non-skilled care is not intended to cure you and is not received in a hospital. Long Term Care Insurance pays for costs rising out of long term care services received in your own home, at a nursing home, adult day care or other assisted living facilities. Traditional health insurance, Medicare or Medicaid do not cover costs rising out of such services.

Medicare is the Federal Health Insurance program which aims to provide health services for people 65 or older. It also covers those who have disabilities under the age of 65, suffering from ALS or Lou Gehrig’s disease, or those dealing with permanent kidney failure requiring dialysis or a transplant. Medicare pays only for short term skilled care such as specialized inpatient hospital stays for a limited time only. Some out patient services such as doctor visits, prescription drugs, diagnostic tests and preventive care are covered by Medicare.

Medicaid is a state based program supplemented by Federal Funds which aims to provide health services to the poor and impoverished according to your state’s guidelines. Medi-Cal is the Medicaid Program in California. Only if you meet your state’s poverty criteria are you eligible for Medicaid. In other words you need to expend all but $2000 of your assets. Medicaid is a welfare program.

Medigap also called Medicare Supplement Insurance is private supplemental health insurance policy. It covers some of the costs that Medicare does not cover. It helps pay coinsurance, co-payments or deductibles of costs of services covered by Medicare. There are only 12 standardized Medigap Policies which have the same benefits regardless of which private company sells it to you.