Medicare is acute care insurance. The cost for your aunt in an Assisted Living Facility is custodial care and is not covered by Medicare. Some people believe they can self-fund for custodial care/services. Unfortunately they can run out of money very quickly, needing to look into obtaining Medicaid/Medi-Cal in order to care of their relative. Because of the cost of an Assisted Living Facility, they need to then move their relative to a nursing home or board & care where the cost of care may be covered by the Medi-Cal benefit the relative is granted.
Long-Term Care insurance (LTCi) is meant to be there to help with expenses for what you hope doesn’t happen, but does happen. When someone has lost their ability with 2 or more of the activities of daily living (i.e., bathing, dressing, eating, ability to walk independently, etc.) – or if they have been diagnosed with Alzheimer’s, they can access their benefit coverage. The time to get this coverage is when you are younger (ideally no later than your 40’s or 50’s) and healthy. I purchased LTCi when my mother passed way in 3rd stage Alzheimer’s. I will be eternally grateful if I never have to use my LTCi, but I will also be eternally grateful that it’s there should I end up needing to use it.