Long-term care will be in high demand as the population in America ages.
Aging often means our bodies struggle to do basic things they used to accomplish with ease.
Balance and movement become challenging as muscles, bones, and tendons weaken.
Memory recall struggles lead to forgetfulness.
Such forgetfulness can lead to relational strain and dangerous consequences, whether through stoves left on or vital medications being missed.
Seniors requiring greater support for their daily tasks will likely need long-term care services.
In fact, a recent study indicated more than half of American seniors will require long-term care during their lifetimes.
These numbers reflect how preparing to pay for these costs is essential for most adults in the United States.
Seniors who prepare for long-term care needs can have greater peace of mind as they age.
A wide range of services fall under the scope of long-term care.
Some people may simply require some help at home for daily activities like bathing, cooking, and toileting.
Others may have chronic conditions requiring residence in a nursing home.
Dementia, mobility limitations, and recovery from surgery or illness are common reasons seniors may require long-term care.
According to the U.S. Census Bureau, about 20 percent of the population is projected to be age 65 or older by 2030.
As a result, the need for home health services, long-term care facilities, and other assisted living options will increase.
Many families and healthcare providers may face challenges as a result of this shift.
Long-term care services can be expensive.
Many seniors and their loved ones do not understand how much these services will cost them.
How costly are long-term care options?
According to a U.S. Department of Health and Human Services report, on average, you can expect the cost of private nursing home rooms to exceed $100,000 per year.
Assisted living facilities run over $50,000 annually.
Yikes!
Even home health services are costly.
Many people also misunderstand what Medicare covers, which compounds financial issues.
In fact, Medicare provides very limited coverage for long-term care needs.
Extended nursing home stays and ongoing personal care services are not covered.
Although some families may consider turning to Medicaid, people often have to deplete their assets to qualify due to restrictive net-worth requirements.
Preparing for the costs of long-term care needs will help you and your loved ones pay for necessary services.
Financial planning tools like long-term care insurance can help you afford healthcare services when the time comes.
Policies typically should be purchased when you are in your 40s or 50s.
Gretchen and I purchased our policies when we were both age 49.
When you plan ahead, you can find more affordable long-term care with a greater scope of coverage.
While we do not provide such legal services, "elder law attorneys" can help families protect assets while navigating requirements for Medicaid eligibility.
They may recommend using trusts or transferring assets to loved ones to address the Medicaid look-back period.
Home care services may be a better option than institutional care for some.
They are often less expensive while simultaneously feeling less stressful and disruptive for seniors.
Adult daycare programs, in-home health aids, and family caregivers can provide support to seniors while helping them remain in their homes.
To make home care possible, houses may need to be modified to include stair lifts, wheelchair ramps, bathroom railings, or other safety adjustments.
Family members can often feel helpless and overwhelmed when they realize their parents or grandparents have limitations and require greater support.
You can work together to address responsibilities, financial limitations, and preferences by talking with your loved ones about your long-term care plans.
Because there will be a larger senior population in the near future, the healthcare system will likely face greater challenges associated with the increased demand for services.
While you cannot control whether or how policymakers and healthcare organizations address possible issues, you can take action to prepare your family and your finances for long-term care needs.
Although we do not provide Medicaid planning here at Harvest Law KC, our Overland Park estate planning law firm can help ensure your long-term care planning aligns with your estate planning goals.
Spoiler alert: We recommend long-term care insurance.
More and more seniors in the United States will require long-term care.
The costs of assisted living, home care, and nursing home care can be steep and exceed $100,000 each year for comprehensive care.
Many people fail to prepare financially for these costs because they do not understand how expensive these services are or the limitations of Medicare and Medicaid.
Families can benefit from making financial preparations, whether through long-term care insurance or other methods.
Although people cannot control how the government or caregiving agencies handle policy changes, they can take personal action to strategically prepare for future needs with their loved ones.
This post is for informational purposes only and does not provide legal advice. You should contact an attorney for advice concerning any particular issue or problem. Nothing herein creates an attorney-client relationship between Harvest Law KC and the reader.
Reference: CNN (Sep. 17, 2023) "More than half of older Americans will need long-term term care. Many can't afford the rising costs"
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