Posts Tagged long term care
There is a price to most things including aging. America is getting older and a new study from Genworth Financial finds most Americans are not financially prepared, especially with rising health care costs for the elderly. The new study finds more than 90 percent of American Adults do not have long term care insurance. Other findings includes 70 percent surveyed believe than the Affordable Care Act will cover their Long Term Care. Department of Health and Human Services projects the population older than 85 will more than double by 2040. Thomas McInerney is the president and CEO of Genworth Financial and spoke to TheStreet’s Susannah Lee on what he calls a ‘Long Term Care Crisis.’
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The Associated Press-NORC Center for Public Affairs Research released new report showing how Americans perceive long-term care this month and it is the second study done by the organization about the public views of long-term care.
The first study, which was done in 2013, was conducted in order to gauge what Americans know or do not know about long-term care and their level of preparedness for this possible need.
The organization found that only a handful of Americans are prepared and understand the financial costs and impact of a long-term care event. Also, the group found that majority of Americans who are 40 and older expect that their families will provide assistance as they grow older.
The organization recognized that family members play a vital role in providing long-term care so they conducted a second study to explore the level of influence that the family has over long-term care.
More so, they intended to find who provides and receives care, as well as the effects of caregiving on family relationships and personal experience.
What changed in from 2013 to 2014?
After evaluating the results of the two studies, AP-NORC reports findings that the Americans’ understanding of long-term care, personal experiences with long-term care, perceptions about their own care and their loved one’s care remained relatively constant from last year’s responses.
Meanwhile, the second study found that in 2014, Americans are more supportive of a long-term care program ran by the government, similar to Medicare. Also, respondents say that setting a number of measures will be helpful in measuring the present quality of living assistance.
How much LTC does Family Members Provide?
According to the study, the majority of Americans who are 40 years old and above rely on their families for long-term care. More so, people who receive care are mostly moms. In fact, four in 10 caregivers have provided care to their mothers. This further illustrates the fact that long-term care should be a more pressing concern for women. In fact, most people who experienced long-term care are female, and are part of the baby boomer and low-income groups.
The Effect of Caregiving on Relationships and LTC Preparedness
Participants in the report who are 40 and older reported they are more likely to plan for long-term care if they experienced a long-term care event. They are less likely to expect that they can count on their families for care should they need it.
However, the overall percentage of people who expect that their loved ones will meet a huge part of their LTC needs remain high. 74 percent of those without a long-term care experience and 67 percent of those who have expect their families to take care of them.
Meanwhile, caregivers report that their experience in taking care of a loved one is mostly positive.
However, results show that relationship strain resulting from caregiving is more prevalent among people who end up taking care of their spouses. About 40 percent reported that taking care of their spouse or partner have resulted to financial burden, while more than half admit that it has caused stress in the family.
Of the respondents who expect to be caregivers in the next five years, only 3 in 10 say that they are prepared to take on the job.
The Need to Raise Awareness on LTC
Americans have limited knowledge about ongoing living assistance, the study found. But between information coming from friends and family, and long-term care experts and professionals, they tend to believe information that comes from the latter.
By 2030, the senior population is expected to make up 20 percent of the U.S. That means that there will be about 73 million Americans over the age of 65. Further, it is estimated that seven out of 10 individuals who are 65 and older will need long-term care, while one in four people aged 18 to 64 will also require a form of care service.
The results show more people will be at risk for long-term care as time passes, and this calls for a better strategy in addressing this possible need. One way to begin is to start educating yourself about long-term care and how it can affect your quality of life.
Here in LTC Options, you can learn about these things. Our website and blog offer a huge pool of information about long-term care and how you can prepare for it.
According to the Department of Health and Human Services, 60 to 70 percent of Americans who are 65 years and older will need long-term care. However, a Metlife Mature Market Institute Study found that only 9 percent of Americans own long-term care insurance.
For those unfamiliar with the type of insurance that focuses on long-term care, it pays benefits when a person becomes unable to care or do basic day-to-day task for themselves.
Why the majority of Americans put off planning for long-term care is certainly up for debate, but some of the causes include people’s distaste for considering that they someday might need to rely on another to accomplish basic tasks.
However, not preparing for long-term care can have drastic effects in the future such as ending up with depleted savings due to care-related expenses, according to experts.
To help you understand what long-term care is about, here are six things that’s essential to know. Recognizing these facts will help you prepare for one of the biggest challenges that you can face later on in life. Here are the 6 things you need to know about long-term care.
1. Government programs provide limited coverage for LTC.
Generally, Medicare don’t pay for long-term care, but what it covers is a 100-day stay in a nursing home following at least a three-day stay in a hospital. Medicaid, on the other hand, covers long-term care but on a condition that a person’s assets is not more than a specific limit, which today is $2,000. Also, the two programs offer limited coverage as they only pay for accredited facilities. Home care, on the other hand, is seldom covered by this program.
2. The cost of long-term care is ever increasing.
In 2013, the annual average cost of staying in a private room in a nursing home is $83,950, as per Genworth’s Cost of Care Survey, but for 2014, the annual median cost has escalated to $87,600.
The cost of long-term care is expensive and it’s not showing signs of going down in the years to come. In fact, the five-year annual growth in cost of the different care settings and services are as follows:
- Homemaker services – 1.20%
- Home Health Aide Services – 1.32%
- Adult Day Health Care – 3.40%
- Assisted Living Facility – 4.29%
- Semi-Private Room in a Nursing Home – 3.91%
- Private Room in a Nursing Home – 4.19%
Based from these statistics, an event that warrants long-term care services can easily deplete a lifetime of savings. Since this is the case, you need to determine how your possible care expenses will be covered. Experts say you must investigate how you can become insured under long-term care insurance.
3. Long-term care is not just about nursing homes.
Most long-term care insurance policies issued in the past only covered nursing homes, but today the product has evolved to cover a wide variety of care services because the majority of Americans wants to receive care in their own homes.
Clearly, long term care is not just about nursing homes. In fact, it involves care services given in the home or in other community-based settings. You have a lot of options on where and how you will receive care. It’s just a matter of knowing what these are and deciding which one is best for you and your family.
4. LTCi is expensive, but it can be made affordable.
There are several ways to make long-term care insurance fit to your budget. One is buying coverage while you’re still young, preferably during your 50s. At this point, you can lock in lower premiums as well as discounts for simply being healthy. Purchasing a specific benefit duration can also lower your premiums, as opposed to buying a lifetime coverage. In addition, you can also opt for a longer elimination period (the time before payments begin) in order to lower the cost of your coverage.
5. Family members can provide care, but it also comes with a cost.
Care provided by family members remains a large source of long-term care. More 10 million individuals who are over 50 provide care to their elderly parents, according to government statistics. As family members provide for the care requirements of their loved ones, they also experience financial hardships. In fact caregiving for a loved one resulted to lost wages amounting to $324,000 for women and $283,000 for men.
6. Long-term care is not just an issue for seniors.
Statistics show that 40 percent of individuals who receive long-term care are between 18 and 64 years old. Clearly, even those who are in the younger age groups are still at risk for needing long-term care. It may be due to medical conditions or injuries resulting to physical activities or accidents, but someone does not have to be older to need long-term care.
So, anyone can experience an event that will warrant long-term care services and this is the key reason to plan for long-term care ahead of time.
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Older adults are often faced with issues like who will take care of them in the latter part of their lives or who will pay for their care expenses. What more if you’re a member of the LGBT community, right? Find out what are the issues surrounding lgbt seniors today and the things you can do in order to improve their quality of life.
For more videos concerning lgbt seniors and other valuable information about aging, visit GracefulAging.