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When people turn 65, Medicare becomes the cornerstone of their healthcare coverage. But Medicare doesn’t cover everything—and one of the biggest gaps involves the cost of skilled nursing, assisted living, and home care. That’s where short-term care insurance comes in.
In this post, we’ll explain what short-term care coverage is, how it works with Medicare, and why it may be an affordable way to protect yourself and your family.
Why Medicare Isn’t Enough
Medicare has about 65 million people enrolled today, and that number will grow to over 80 million by 2030. With more people in the system, costs are rising—and often shifting onto consumers.
A big misconception is that Medicare will cover long nursing home or assisted living stays. The truth:
- Medicare covers skilled nursing care only after a 3-day inpatient hospital stay.
- If you’re admitted under observation status (billed under Part B), you may not qualify for skilled nursing coverage—even if you spend days in the hospital.
- Medicare Supplements won’t pay either, because if Medicare doesn’t pay, the supplement doesn’t pay.
This creates a serious coverage gap for many people.
What Is Short-Term Care?
Short-term care is different from long-term care insurance.
- Short-term care covers up to 360 days (about one year) of care.
- Long-term care kicks in for coverage beyond that.
At Giardini Medicare, we focus on short-term care because it dovetails nicely with Medicare and supplements. It can help with:
- Skilled nursing facilities
- Assisted living
- Home health care
- Custodial care (help with bathing, dressing, eating, etc.)
The Cost of Care
To put it in perspective, here are some national averages (from Genworth’s Cost of Care Survey):
- Home health aide: $32/hour
- Assisted living: $4,000–$6,000/month (varies widely by state)
- Nursing home private room: $449/day
These expenses add up quickly. Without coverage, families often dip into savings to pay.
How Short Term Care
Plans will include:
- Daily Nursing Facility Benefit – You can select a cash benefit (e.g., $200/day) for up to 360 days. Paid directly to you.
- Daily Hospital Benefit – Optional coverage for hospital stays.
- Home Care Rider – Weekly cash benefits to help you pay for in-home caregivers.
Home Care Rider: A Popular Option
Many clients prefer the home care rider, which provides cash for in-home services.
- Benefits range from $150–$2,100/week.
- Coverage periods: 13, 26, or 52 weeks.
- Premiums can be surprisingly affordable—sometimes as low as $30/month for modest coverage.
You qualify if your doctor certifies that you need help with at least two activities of daily living (like bathing or dressing). The cash is yours to use however you wish—pay a caregiver, hire an agency, or even help offset family caregiving costs.
Flexibility and Affordability
- Coverage can be customized to your budget.
- You can increase benefits later if you’re still healthy enough to qualify.
- Available up to age 89 (buying younger locks in lower premiums).
- Premiums have a history of not increasing for decades.
Who Should Consider Short-Term Care?
Short-term care is worth considering if you:
- Worry about the hospital “observation status” loophole.
- Don’t want to rely solely on children or family for caregiving.
- Want a cost-effective safety net without the high premiums of traditional long-term care insurance.
- Are in your 50s, 60s, or early 70s and want to lock in affordable rates.
Limitations to Note
- Not available in every state.
- Coverage resets after 180 days without a claim, with benefits capped at two benefit periods total.
- It’s short-term only - will not provide "life time" benefits.
Final Thoughts
Medicare is an incredible program, but it has gaps - especially when it comes to post-hospital and custodial care. Short-term care insurance can provide peace of mind by giving you cash to cover the rising cost of care, whether in a facility or at home.
If you’re interested in learning more or want a personalized quote, our team at Giardini Medicare can walk you through the options. Remember: you don’t pay us—we’re compensated by the insurance company. Our job is to educate you, answer questions, and make sure you’re covered where Medicare leaves off.
👉 Schedule a free call at gmedicareteam.com to explore if short-term care coverage makes sense for you.