Have you noticed the number of nursing homes that have been built during the recent years? Within a ten mile
radius from my home, there are eight nusing homes! The reason is that businesses and social service agencies are preparing for the surge of the aging baby boomers. It is estimated that seven out of ten baby boomers are expected to require long-term care at some point after they reach the age of 65 or they will have a parent in need of long term care. But once the baby boomers reach their 80s, the demand for long term care services is expected to surge because there will be a lack of available family caregivers due to the declining family sizes, increasing childlessness, and rising divorce rates.
In a recent study by America's Health Insurance Plans it was found that many baby boomers have not prepared for their long-term care expenses. The study further found that more than half of the baby boomers mistakenly believe long-term care costs will be covered by Medicare or another form of health insurance. This misconception could be financially devastating because, according to the AARP Public Policy Institute, the average cost of a nursing home stay is more than $67,000 per year.
The truth is:
· Most health insurance plans do not cover long-term care expenses.
· Medicare is an insurance program administered by the federal government. You must qualify for Medicare by having paid into the program throughout your life through payroll taxes and by reaching age 65. Medicare does cover long-term care expenses, but the best case scenario may provide for 100 days of care.
· Medicaid is a program available in all states and is funded by federal and state dollars. It, too, provides healthcare benefits, but to qualify, spend-down requirements cause most individuals to deplete their financial assets before their coverage begins. Without long-term care insurance coverage, many middle-class retirees in need of long term care could deplete their financial assets.
radius from my home, there are eight nusing homes! The reason is that businesses and social service agencies are preparing for the surge of the aging baby boomers. It is estimated that seven out of ten baby boomers are expected to require long-term care at some point after they reach the age of 65 or they will have a parent in need of long term care. But once the baby boomers reach their 80s, the demand for long term care services is expected to surge because there will be a lack of available family caregivers due to the declining family sizes, increasing childlessness, and rising divorce rates.In a recent study by America's Health Insurance Plans it was found that many baby boomers have not prepared for their long-term care expenses. The study further found that more than half of the baby boomers mistakenly believe long-term care costs will be covered by Medicare or another form of health insurance. This misconception could be financially devastating because, according to the AARP Public Policy Institute, the average cost of a nursing home stay is more than $67,000 per year.
The truth is:
· Most health insurance plans do not cover long-term care expenses.
· Medicare is an insurance program administered by the federal government. You must qualify for Medicare by having paid into the program throughout your life through payroll taxes and by reaching age 65. Medicare does cover long-term care expenses, but the best case scenario may provide for 100 days of care.
· Medicaid is a program available in all states and is funded by federal and state dollars. It, too, provides healthcare benefits, but to qualify, spend-down requirements cause most individuals to deplete their financial assets before their coverage begins. Without long-term care insurance coverage, many middle-class retirees in need of long term care could deplete their financial assets.
Surprisingly, long term care coverage is not as expensive as one would think. According to the Long-Term Care Insurance Price Index from the American Association for Long-Term Care Insurance, a 55-year-old can expect to pay $655 per year if married or $1,075 per year if single. At age 65, a married individual will pay $1,292 per year, while a single individual will pay $1,923. However, there are four dangers concerning long-term care insurance coverage to avoid. To learn these dangers, visit “Moneywatch”.
I have heard about folks having to deplete their assets before obtaining long-term care, but it hasn't really hit close to home. I did not realize how inexpensive (comparitively speaking) that long-term care insurance costs. It's something I'll look into further. Thanks for the information.
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