Long Term Care Basics Long Term Care Insurance is an insurance policy that  provides coverage for daily health and social services expenses incurred when confined to a nursing home facility  or for receiving such care provided under the supervision of medical professionals in some other approved setting. What are the Chances You Will Need Long Term Care? According to recent studies nearly half of all people over the age of 65 in the United States will enter a nursing home in the future. Does Medicare Cover a Large Portion of the Expenses? Medicare actually covers less than 2% of expenses. The patient or his or her family paid over half of the costs associated with Long Term Care. Can Medicaid Pay for Long Term Care? Medicaid as you know is a welfare program funded by the government. It was enacted to aid the truly impoverished. Each state has the responsibility of determining eligibility for benefits