In 2000, Medicaid, the nation’s welfare program for low-income persons, paid for 42% of home and nursing home care provided in America. Medicare paid for 15% of the $125 billion we are spending on these services, but only for short-term care called “skilled care.” Payment stops when progress toward recovery is no longer evident. The Veteran’s Administration paid for 2% and 4% was identified as “other” sources. Only 12% was paid for by private insurance including long term care insurance and 25% was paid out-of pocket by individuals.