Most Americans mistakenly believe Medicare covers nursing home care, but it primarily covers short-term skilled nursing after hospitalization, with strict limits and copayments. Long-term care, including assistance with daily activities, is generally not covered by Medicare or standard insurance. Long-term care insurance or hybrid life insurance policies are options, but premiums vary by age and health. Medicaid covers nursing home care only after assets are nearly depleted, with strict eligibility rules. Early planning is crucial to avoid financial hardship.