Long Term Care is one of the most pressing issues
and likely the greatest retirement expense facing
Americans today– it will only get more urgent as the
nation ages. While people are living longer, many
have little idea about the added pressures on their
“long life care”– fiscally and emotionally. Those
who had planned to tap their hard-earned nest egg to
cover the future long term cost of care may face a
shock.
Consider this:
The number of persons aged 65 or older is
expected to double in the next 20 years; there will
be 110 percent more people 80 or older – U.S. Census
Bureau, News Release, August 14, 2008
At least 70% of people over age 65 will require
some long term care services at some point; more
than 40% will need care in a nursing home – U.S.
Department of Health and Human Services, September
2008
The cost of long term care in the U.S. has
increased for the sixth consecutive year, most of
these increases are outpacing inflation – Genworth
Financial Cost of Care Survey, conducted by
CareScout, April 2009
The national average median cost of one year in a
private nursing home room is $74,208 – Genworth
Financial Cost of Care Survey, conducted by
CareScout, April 2009
It is never too soon and almost always better to
have talked and made plans in advance. Talk with
your parents and family. Having the right plan in
place now can help make sure your loved one has the
financial resources to cover the exorbitant costs
while receiving the right quality of care. It will
help them maintain their dignity and provide the
flexibility to participate in making choices that
impact their care.
It’s important to consider care options while a
person is healthy. That’s when the best rates and
options are available and families are in much
better emotional shape to discuss long term
care-related planning. The simple truth is that
during a crisis, situations can quickly escalate and
cause tension or introduce issues that could have
otherwise been avoided.
While there is much to gain by talking as soon as
possible, there’s a staggering amount to lose if we
miss the chance. The list is long, but here are just
a few things you should know now, rather than
discovering them the hard way later:
Health insurance and Medicare cover virtually
none of the cost of nursing homes, assisted-living
facilities or in-home care– the care many people
require late in life. Many people pay out of pocket
until they are practically destitute and then
Medicaid kicks in. Many who thought they had saved
adequately end up impoverished, getting substandard
care.
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