Core Insights - Medicare does not cover long-term care costs, making dedicated long-term care insurance a recommended option for financing such expenses [1][19] - The median monthly cost for a private room in a nursing home is projected to rise from $9,584 in 2023 to nearly $13,000 by 2033 [3] - Medicaid can cover long-term care but has strict income and asset caps that vary by state, impacting eligibility for coverage [9][10] Long-Term Care Insurance - Purchasing long-term care insurance earlier can lead to lower premiums, with costs for a healthy 55-year-old ranging from $950 to $1,500 annually, increasing to $1,700 to $2,700 at age 65 [1][19] - A strong estate plan should include provisions for late-life care, while a financial plan must account for nursing home expenses [2] Medicaid Coverage - Medicaid provides coverage for nursing home care but may recover costs from a recipient's estate post-death through the Medicaid Estate Recovery Program (MERP) [8] - Each state has different eligibility requirements; for instance, New York has an income cap of $1,677 per month and total asset limit of $30,182, while Massachusetts has stricter limits [9][10] Asset Protection Strategies - Assets in a Roth IRA may not count towards Medicaid eligibility in some states, while traditional IRAs do [11] - Establishing an irrevocable trust can protect assets from being counted in Medicaid eligibility assessments, but there is a five-year look-back period for asset transfers [15][14] Financial Planning Recommendations - Financial advisors can assist in navigating long-term care planning, including insurance options and asset protection strategies [6][16] - Diversified investments and income-generating assets are recommended to prepare for potential long-term care costs [19]