According to a 2019 study by Bankers Life, 56% of baby boomers mistakenly believe that Medicare covers ongoing long-term care.
In an attempt to address gaps in LTC Medicare payments, former CMS technical expert Diane Omdahl recommends to Forbes that residents take out a reverse mortgage to cover gaps in care costs. “Let’s be very clear: Medicare does not pay for long-term care,” Omdahl explained.
A reverse mortgage is a type of home equity loan that allows homeowners to receive cash against the value of their home without selling it. While this might not seem ideal, Omdahl suggests it as an option to fill gaps not covered by Medicare for those in need of long-term care without savings to cover its cost.