Why People Don't Plan Ahead For Long Term Care Costs
Long Term Care
As the issues of Health Insurance and Heath care dominate the newswaves…Americans are also realizing that they have a significant chance of needing long-term care (LTC). Many people do not have a clue as to the cost of such care. In fact many Americans greatly underestimate the cost of long term care. To add insult to injury…they believe government programs cover more than they actually do.
Why People Don't Plan Ahead For Long Term Care Costs
There are many reasons why people don't plan ahead for long-term care. These include the natural tendency to avoid thinking about becoming dependent on others for your care, misinformation about the risks of needing care, and lack of knowledge about the cost of care and payment options. The following reasons stand out as glaring glimpses of the obvious!:
- Most people don't like to think about getting older, developing a disability, becoming less independent, or needing help with personal care.
-
Many people don't realize that their chance of needing long-term care by the time they turn 65 is as high as 60 percent.
-
People commonly misunderstand how expensive long-term care is, and how it is paid for.
-
People don't realize that health insurance coverage do not pay for most long-term care services.
-
People don't realize that Medicare, and/or disability coverage do not pay for most long-term care services.
-
People do not realize that Medicaid pays for some long-term care services, but only if you qualify for the program because you have limited income and financial resources.
-
Some people find it too difficult to raise these subjects with their loved ones, making it difficult to explore and define their plans.
-
Adult children often feel like they are patronizing their parents if they raise the subject or they are afraid of giving the impression that they might not want to provide care if it is needed.
-
Parents often don't want to make adult children uncomfortable or to discuss details of their finances with them.
-
People so not realize that a good nursing home, especially one that specializes in Alzheimer's disease or dementia care costs roughly the equivalent of a four- or five-star hotel. The average cost of a nursing-home stay in the United States is $150 per day. That adds up to about $4,562.50 a month, or $54,750 a year. This number will vary widely from state to state.
-
The average length of stay in a nursing home facility is about two-and-a-half years, according to the National Center for Health Statistics.
-
The rate of medical inflation is between 10 percent and 15 percent a year according the Employee Benefits Research Institute. That means, if the going rate for a nursing home is $72,000 a year in your state now, in 10 years the price tag could be close to $200,000.
-
People realize it is important to plan, but don't know how to go about it. Get More Details.
The Long Term Care Planning Kit:
Find out how the Federal Government is educating your clients and prospects about Long Term Care: Go to
What Does Long-Term Care Cost You?
The total amount spent on long-term care services in the United States approaches $200 billion annually. LTC includes a broad range of health and support services that people need as they age or if they are disabled. The majority of these services are personal care, or assistance with activities of daily living that many families are able to provide all, or some of, free. But, as care and support needs increase, paid care is usually needed to supplement family provided services and supports, provide respite to family caregivers, or to pay for more extensive services in a facility, such as a nursing home or assisted living, when individuals can no longer be cared for in their homes.
There are variations in costs based on the type and amount of care you need, the provider you use, and where you live. Home health and home care services, provided in two-to-four-hour blocks of time referred to as “visits,” are generally more expensive in the evening, or on weekends or holidays. The costs of services in some community programs, such as adult day service programs, are often provided at a per-day rate, but vary based on overhead and programming costs. Many care facilities charge extra for services provided beyond the basic room-and-board charge, although some may have “all inclusive” fees.
What Does Care Cost Where I Live? To find out costs of care where you live.
National Clearinghouse for Long-Term Care
The National Clearinghouse for Long-Term Care was sourced for the above information. National Clearinghouse for Long-Term Care website is provided by the U.S. Department of Health and Human Services to provide information and resources to help you and your family plan for future long-term care (LTC) needs.
The National Clearinghouse for Long-Term Care Information is primarily intended as an information and planning resource for individuals who don't yet require long-term care, but it includes information on services and financing options that can be helpful to all individuals. Go To: www.longtermcare.gov
Financial Services Professionals as well as consumers should make informed decisions about the purchased of Long Term Care Coverages. Here’s more help:
Permalink | Print
Jim Robinson posted on Sunday, October 31, 2010
Tags: Long Term Care, LTC, Elder Care, Aging Parents, Senior Citizens, Medicare, Medicaid
Posted in: Health
Baby Boomers Stressed Out Over LTC
Stressed Out Sandwich Generation Needs Help
A study done by The Hartford Financial Services Group, Inc. and ComPsych Corporation ("Stressed- out San...
Protecting The Family’s Finances and Income from Destruction
Protecting and Managing Wealth for Upcoming Generations AARP’s Knowledge Management survey, conducted five years after their 199...
Capacity To Meet Long Term Care Cost Hindered By Grandkids
Long Term Care Issue...GrandkidsThe National Clearinghouse for Long-Term Care states that Long-Term Care is a variety of services and supports to meet...
What are Partnership for Long-Term Care Programs?
LTC Partnerships
What are Partnership for Long-Term Care' Programs
Medicaid is a state-government-administered program that pays the medical a...
top