| "The
Future Health Care Crisis In America" The cost of long
term care is staggering, currently in America the cost for long term care averages
over $50,000 per year. The experts are predicting that by the year 2020 the cost
cost will more than triple and then quadruple by 2030. What is misunderstood
by most is that Medicare supplements, HMO's or any other type of health insurance,
do not cover the cost of long term care. Medicare only pays for a very
small portion of the cost of long term care. Medicaid, which is a government
entitlement (Welfare) program for the indigent, is jointly funded by federal,
state and some local government agencies. Medicaid is primarily a nursing home
benefit for the poor. Long Term Care is a TIME BOMB set to explode. What is Long Term Care?
Long Term Care is special assistance with the Activities of Daily Living. Activities
of Daily Living, commonly known as ADL's, include: - Bathing
- Dressing
- Continence
- Eating
- Toileting
- Transferring
A
cognitively impaired person may be able to perform all ADL's listed above and
have the need for long term care assistance. Many people think that long
term care is synonymous to nursing home care. In the past this may have been true.
It may surprise you to know that only 14% of long term care is provided in a nursing
home. The majority of long term care is provided by: - Family members
(which may include friends)
- Adult Day Health Care Facilities
- Assisted
Living Facilities/ Comprehensive Personal Care Homes (ALF's, CPCH’s)
- Residential
Health Care Facilities (RHCF's)
- Continuing Care Retirement Communities
(CCRC’s)
- Alternate Family Care (AFC)
- Home Health Care
Will you need long Term Care?
According to a recent survey most Americans believe that they do not have a
need for Long Term Care Insurance. Consider this: Myth:
Long Term Care is only for the Elderly. Fact: This
couldn’t be further from the truth, 40% of Americans receiving long term care
are under 65. An example of this is the plight of Superman -- it wasn’t kryptonite
that brought him down. Christopher Reeve, at only the age of 43, became one of
the working adults in this country between ages 18-64 needing long term
care. Fact: A full third of people that suffer
a stroke are under the age of 65. (American Heart Association)
Myth: You will never need long term care insurance. In
a survey completed by The Gallup Organization shows that 76% of Americans believe
they will never have the need for a nursing home, an assisted living program,
home and community-based care, or any other type of LTC service. (Public Attitudes
on Long Term Care: "The EBRI Poll": A National Public Opinion Survey
Conducted by The Gallup Organization, Inc. Released August 1993; 15.) Fact:
Two out of five Americans will need nursing home care at some point in
their lives. (Kemper, Peter, and Christopher M. Murtaugh, "Lifetime Use of
Nursing Home Care." New England Journal of Medicine 1991; 324 (9): 595.)
Fact: One in five Americans over the age of 50
are at a high risk of needing long-term care services during the next 12 months.
(“Long-Term Care Awareness Survey”, Harvard School of Public Health/ Louis Harris
& Associates, 1/2/96, p. 2) Fact: Over 50%
of people over 65 will need some sort of long term care. This is 1 out of 2 people
will need care, which includes not just nursing homes but home health care as
well. Consider this: Do you drive a car without car insurance? Of
course not, yet the odds of having an automobile accident are 1 in 240. Do
you own a home? You have home owners insurance on your home don't you? Again,
yes of course you do. Yet the odds of a fire in the home is only 1 in 1,200. The
odds are 1 in 2 that you will need Long Term Care. Families that plan for
long term care needs such as home health care, adult day care and nursing home
care and do not rely on public assistance programs, will find themselves with
more control and independence, when they become one of the one out of two people
that will need Long Term Care. Those that have planned properly will not find
themselves surprised by the high cost of care.
What
does long Term Care cost? The cost of long term care will vary by location.
On an average, the total costs range from: $41,000 to $75,000 annually (Guide
to Retirement Living-1999). The cost for long term care will triple by the
year 2020 and quadruple by the year 2030.
See the cost by location The Wall Street Journal, June 2000, reported
that 70% of all people admitted to a nursing home go home broke within three
months. In this same article it was pointed out that 50% of all couples are impoverished
within six months after one spouse is admitted. This was just the hard dollar
costs. What about the indirect costs? Which include... - Loss
of dignity
- Dependency on the government
- Loss of control
- Loss
of personal freedom
- Families are displaced/disrupted
- Marital strain
Who will pay for your long
Term Care?
Is
long Term Care insurance the solution? Long Term Care insurance will...
- Keep you from being a burden to your family.
- Protect your assets
- Provide
access to quality care that is not available under Medicaid.
- Give you
choices and independence.
- Keep you from being dependent on the government
welfare programs.
- Give you peace of mind
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