Many clients are under the impression that Medicare will pay for long term care if they need it. However, Medicare only pays for long term care if it requires skilled services or rehabilitative care in a nursing home for a maximum of 100 days.
Assistance with the activities of daily living is considered unskilled (or custodial care) and is not covered by Medicare.
A single individual to qualify for Medicaid is only allowed to keep $65/month and must put any other income towards paying for their care.
Medicaid pays the largest percentage of care provided in an institutional setting. For people living at home, the care is often provided by family members who receive no compensation.