Elder Law FAX The December 18, 2006, issue of Elder Law FAX, a free newsletter published every other Monday by the Elder Law Practice of Timothy L. Takacs.   The Costs of Long-Term Care: Public Perceptions versus Reality in 2006 How much does a nursing home cost? Who pays for long-term care? Recently, AARP released the results of a survey of Americans age 45 and older these questions. It is the same survey that AARP did five years ago, in 2001.   What AARP found was that Americans don't know very much about long-term care and long-term care costs. And in the last five years, what Americans actually know and what they think they know hasn't changed very much.   Here are the key findings from the AARP survey:   Familiarity with Long-Term Care Sixty percent of Americans age 45 and older said they are at least "somewhat familiar" with long-term care services currently available, including about one in five (21%) who say they are "very familiar" with these services. This finding is virtually unchanged since 2001--and it is still not supported by respondents' reported knowledge of long-term care costs.   Knowledge of Costs Less than one in ten (8%) accurately estimated the monthly cost of a nursing home within 20 percent of the national average cost.   Less than a quarter (23%) accurately estimated the monthly cost of an assisted living facility within 20 percent of the correct cost.   Twenty-three per cent said they don't know the cost of an in-home visit from a skilled nurse.   One in five reported that they don't know the cost of an in-home visit from an aide.   Of those surveyed who offered an estimate of the cost of the above care services, almost 40 percent admitted that their estimated based on "just a hunch."   The AARP survey reports a fascinating finding about Americans' perception of long-term care insurance. Almost 30 percent of those age 45 and old responding said that they have purchased long-term care insurance.   Although, says AARP, getting an accurate number of people who have long-term care insurance is difficult, experts in the industry believe that only about 10 percent of Americans who are 55 and older have private long-term care insurance coverage.   "If people mistakenly think they have long-term care insurance when they do not," says AARP, "they may have a false feeling of financial preparedness to handle long-term care costs."   Interestingly, the survey revealed that people who reported personal experience with a loved one needing long-term care did not know any more about long-term care costs that those who had no experience.   Knowledge of Funding Sources Most (59%) think Medicare will pay for extended nursing home stay. That is not correct. Likewise, fifty-two percent incorrectly believe Medicare covers assisted living costs. Another 18% "don't know."   AARP surveyed people in California, Florida, Ohio, Pennsylvania, and South Carolina.   In California, 40 percent incorrectly believe Medi-Cal (the name for the state's Medicaid program) will pay for assisted living.   Nearly half of Ohio respondents (45%) incorrectly believe Medigap/Medicare supplemental insurance covers assisted living costs.   More than half of Pennsylvanians (54%) estimated too low when asked about the cost of a nursing home stay.   AARP spokesperson Steve Hahn said, "Most Americans are unprepared to meet the financial challenge" posed by the cost of long-term care.   The full report was released in December 2006 and is available at: http://www.aarp.org/research/longtermcare/costs/ltc_costs_2006.html.