Posts Tagged retirement
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 rising cost of long term care can be intimidating, however, that should not be reason enough for you to disregard planning for it. In fact, this should be your motivation to start formulating a plan for long term care as early as now.
It is innate in people to shun thoughts about getting old, becoming ill and being dependent on others for help, this is one of the reasons why most would opt to put long term care planning on hold. However, not thinking about it now doesn’t lessen the possibilities that you might it need it in the future.
Typically, a person would want to maintain independence, good health and financial stability when the golden years come. The same probably goes for you. It is important to note though that when long term care needs suddenly arise and you are not ready, it can have great implications on the areas above. The effects could be drastic. Indeed, it pays to have a good and sound long term care plan.
Other reasons why it’s essential to plan are the following:
Elderly Population Growth
By 2035, the number of the elderly aging 65 and beyond is estimated to grow to 77 million. As the number of old people grows, the higher the possible need for long term care. Furthermore, you should take into consideration that about 70% of people aging 65 years old or more would require long term care.
Birthrate is going down, thus, families are now getting smaller. This can result to a growth in the number of older people. Meanwhile 40% of the population is single, and often times most of them don’t have partners or children that can take care of them. If this persists, then people needing long term care will likely grow. And one of them could be you.
The Effect of Unpreparedness to your Family
If you are caught unprepared in facing a need for long term care, instinctively, you would turn to your family. Loved ones will no doubt do their best to provide you with care, however, this can have drawbacks on their end.
Long term care requires time. If your family devotes their time in taking care of you, they might need to put their careers on hold. This can result to a decrease in their income which will result to financial strain. Of course, you wouldn’t want that for your children, relatives or loved ones.
If you fail to plan when it comes to long term care, it can greatly affect the state of your finances. Long term care services are hefty, and if you don’t have a plan say, an insurance policy, it can eat off a huge chunk of your nest. Worst case scenario would be your assets and funds being depleted.
Of course, you are in a rush to receive care. Therefore, you might need to pay huge sums outright. Furthermore, since you are in haste, shopping for different programs, services and rates is no longer to your advantage.
What about Government Programs?
If you want comprehensive long term care coverage, it is not advised that you rely solely on programs set out by the government. Government programs like Medicare may cover long term care under strict conditions. Usually, the coverage is very limited and may still result to out-of-pocket payments on your end should you need care that’s way beyond what is covered.
Medicaid is the federal program that is more geared towards long term care. However, you need to meet a certain asset criteria. Typically, your assets have to be close to depletion before you’ll be eligible for benefits.
Government programs can help with long term care, that’s true. However, what they offer is very limited and might be short of your actual needs.
All these factors boil down to one thing: security. Planning for long term care is your first step to ensuring that you have the best quality of life in the future, most likely in your elderly years.
A recent report reveals that 81 million is the expected number of Americans who will be 65 and above in 2050. This goes to show that a lot of people will require long term care in the future and thus will need long term care insurance. Most people put off the idea of planning for long term care because they think that they will not benefit from this sooner or later. People should take into consideration the probability of incurring an injury or developing a serious illness and purchase private insurance in order to avoid financial woes. The cost of long term comes with a sky-high price tag nowadays and what more in the future, right? So it’s recommended to have long term care policy because this is the most economical and efficient way to cover your expenses. If you’re really concerned about your future and your family’s future, start planning for long term care now.
The first-ever compilation of federal data profiles five types of long-term care providers in 2012. About 58,500 long-term care providers are divided among five groups, including nursing homes and adult day services. among 58,500 entities and nearly 1.5 million nursing employees and the people who use them.
More than 8 million people (mostly women and mostly older than 65) used services of a long-term care provider last year, according to the first-ever compilation of federal data profiling the types of providers in the USA and the people who use them.
The report, released Thursday, is based on the National Study of Long-Term Care Providers, a new effort by the National Center for Health Statistics to get a better handle on the options for care and determine trends.
“Most think of nursing homes, but because the long-term care industry has evolved over the past 30 years, nursing homes are still the major player in long-term care services but not the only provider,” says Lauren Harris-Kojetin, the report’s lead author.
The five areas of paid, regulated providers are adult day service centers, home health agencies, hospices, nursing homes, and assisted living and similar residential care communities. The report for 2012 includes some 2011 data; officials say numbers will be updated every two years.
Having the federal data will help providers and officials understand the scope of caregiving needs, suggests John Schall, CEO of the Caregiver Action Network, a family caregiver organization based in Washington, D.C.
“This confirms what we always suspected in terms of what those numbers would look like,” he says. “That’s a fascinating number (8 million) because we never actually had that number.”
However, Schall says the 8 million figure is still “a minority of people receiving care.”
“By far, the lion’s share of people getting care are getting it from their family caregivers rather than from paid care workers,” he says. “There’s no question that family caregiving is really the backbone of the long-term care support services in this country.”
Data released this summer from the Pew Research
Center showed that 39% of adults in the USA say they are caregivers for someone with significant health issues, up from 30% in 2010.
In many cases, Harris-Kojetin says, the new information is “a piece of the picture” of people who may also be getting unpaid, informal care, “but at least some services from paid, regulated providers.”
The national report finds that about 58,500 paid, regulated long-term care entities are divided among the five sectors and employ nearly 1.5 million nurses and nursing aides.
The report finds that “a sizable portion of service users” in all five types of facility sectors had a diagnosis of Alzheimer’s disease or other dementias, ranging from about 30% of home health patients to almost half of nursing home residents.
The percentage of users of long-term care services diagnosed with depression was highest in nursing homes (48.5%) and lowest in residential care communities (24.8%), adult day services centers (23.5%) and hospices (22.2%).