As Davis (43) points out: One reason is location, even the age and condition of the building, staffing, actual day-to-day costs, and whether the facility is supported by an organization such as a Church, foundation, or government sponsorship. The future does not hold much financial relief. It is quite possible within a few years, as the baby boomers become senior citizens, the demand and the cost for nursing homes will climb even higher
Private insurance is unlikely to cover the full cost of long-term care. So that brings us to two programs that are funded by the federal and state government that help to cover part of the cost for nursing homes, Medicare and Medicaid. Most of the elderly become eligible for Medicaid, which has become the main funding source for nursing homes. "More then 50 percent of nursing homes revenue comes from Medicaid" (Pieper 86). (In California, there is also a supplementary program called MediCal.) In order for elderly persons to qualify for nursing home care under Medicaid, "The potential recipient must be able to demonstrate that he/she has income below the minimum set by the state and that the kind of care he/she needs can best be provided in either a skilled or an intermediate care nursing home" (Pieper pg. 88). (See table below)
Medicare is a federal health care program that has been the center of attention. Medicare has two parts: Part A and Part B. Part A of Medicare is covered by the taxes that are collected from employees and employers. It covers hospital insurance, home health care, and nursing home care. "Medicare does not cover nursing home stays beyond 100 days annually and requires $95 per day co-payment after 21 days"(Kovner, pg.230) see the table below. According to the" Medicare and You 2001" booklet, the co-payment after 21 days has been changed to $99, which shows that as demand for health care rises, so has the cost. One of the problems with federal and state programs, such as Med...