This is a misconception held by many. In actuality, Medicare pays on average 7% of nursing home stays, only covers skilled care, and only pays for a limited time.  The average stay in a Nursing Home is less than 3 years; moreover, the average number of home visits is 169.  No one likes to think that they will ever need nursing home or even home health care; rather, we all assume and want to believe we will live a healthy life until we die.  The fact is, a 65-year-old living today has a fifty percent chance of needing at least one type of care - nursing home or home care.  Fifty percent of those who enter a nursing home will stay at least a year.   Twenty-one percent will remain five years or longer.  Failure to prepare for the cost of long-term care is the primary cause of impoverishment among the elderly. 

There is a "good news-bad news" scenario that comes into play regarding government aid. The good news is that the government will assist once you are on Medicaid.  The bad news is that to become eligible for Medicaid assistance, you must first spend down your assets to poverty level, losing your independence, your personal freedom and the choices you thought you would have.