While mounting costs of Social Security, prescription drugs and federal health care programs get a lot of attention, the staggering costs of providing community based social services and nursing home facilities and in-home care to seniors are draining the savings of average Americans and posing frightening long-term fiscal challenges for government officials.
While mounting costs of Social Security, prescription drugs and federal health care programs get a lot of attention, the staggering costs of providing community based social services and nursing home facilities and in-home care to seniors are draining the savings of average Americans and posing frightening long-term fiscal challenges for government officials.
Any way you look at it, the budgetary challenges are daunting. About 12 million older Americans are currently in need of long-term services and more than 70 percent of people 65 and older will need Long Term Care at some point in their lives, according to studies.
Many of these people have trouble performing routine activities on a daily basis, such as bathing and dressing, managing their medication and cleaning their homes, apartments or assisted living quarters.
What are the choices when paying for Long Term Care
Out of pocket
you can pay form your own savings if you can but let's face it, not many families have the funds available to do so, at least not for long. if you have savings of $100,000, depending upon where you live, it won't even last 1 year if the nursing home costs are $10,000 a year or more [average for the Northeast section of the country].
Long Term Care Insurance
You can purchase long term care insurance but it's very expensive and you may not even qualify if you have any existing health issues. If you buy it young enough to not have health issues you face annual increases in premiums and you'll be paying that monthly premium for 20 years or more and in the end the company may not exist anymore or you may not even use the insurance if you end up not needing Long Term Care.
Life Insurance with an LTC rider
This works just as any life insurance policy would, however, if you need long term care you can access the funds in your policy [tax free] to pay for the costs. The upside to this option is if you don't need long term care during your lifetime your family will still benefit by the insurance policy.
Medicaid
Medicaid is a state and federal program that pays for your long term care costs [after qualifying]. It has become, by default, the long term care insurance of the middle class. after qualifying, medicaid pays all of your costs involved with your nursing home, assisted living or even at-home care. [ each state is different]. The rules are strict and confusing, you will definately want an expert on your side, however, when done properly you can qualify even if you have assets and you can preserve those hard earned assets for your family and have your Long Term Care costs covered. Read more here
Health care costs associated with Long Term Care are soaring. Dementia related costs are now higher than costs associated with both cancer and heart disease.
Long Term care Planning is essential and can be very tricky and if you want Medicaid planning involved also it becomes beyond the capabilities of anyone other than an expert.
For expert planning in Philadelphia PA, New Jersey or the Baltimore area of Maryland contact us today
