With the senior citizens in your life, have you had “the talk”?
Not the one with the bees and the birds, though. the one on long-term care arrangements.
Experts caution that if you haven’t already, you should do it immediately to avoid financial ruin and a miserable death experience for a loved one.
The Census Bureau predicts that elderly adults will surpass children for the first time in American history in ten years. In 2034, there would be 77 million individuals over the age of 65, compared to 76.5 million persons under the age of 18. Nearly 1 in 4 Americans will be 65 or older by 2060, while the number of people aged 85 and above will triple and the number of Americans living to be 100 will increase by 500,000.
With this anticipated increase, there will likely be a rise in demand for healthcare services, in-home caregiving, and assisted living facilities in America. But the expense of that treatment is unbelievable. According to a Genworth Cost of Care Survey from 2021, the average annual cost of assisted living is $54,000, the average cost of a private nursing home room is $108,405, and the average cost of basic home care assistance for five days a week, eight hours a day is $56,160.
The National Health Expenditure estimates show that from 2018 to 2027, spending on home health care will rise by 83%, while spending on nursing homes and other continuing care retirement communities would rise by 58%.
According to Michelle Griffith, senior wealth advisor at Citi Personal Wealth Management, this could be the next public health emergency.
I having health insurance, what happens?
Most health insurance policies do not include long-term care.
Only short-term acute care, generally for accidents, illnesses, urgent and emergency requirements, and for recovery or rehabilitation following surgery, is covered by Medicare and supplemental insurance, or Medigap.
Because long-term care is not seen as medical treatment, they do not cover it. According to Medicare.gov, it is instead classified as “a range of services and support for your personal care needs” to help with daily living.
For as long as there is a need, only Medicaid will cover non-medical, long-term nursing home care. Medicaid, however, is only available to those with low incomes, leaving a sizable portion of Americans to fend for themselves.
Paying out of pocket could be acceptable if you’re wealthy, but most Americans aren’t so fortunate. According to figures from 2021 compiled by Pew Research Centre, half of the population is middle-class.
It’s time to have “the talk” about how elders may prevent financial catastrophe by making long-term health care plans now.
America Today’s Medora Lee
For the first time in American history, older adults will outnumber children in ten years.
As a result, there will be an increase in the need for long-term healthcare, yet expenses will be too high for most individuals.
Because of this, experts advise consumers to start planning right away to avoid financial catastrophe later on.
With the senior citizens in your life, have you had “the talk”?
Not the one with the bees and the birds, though. the one on long-term care arrangements.
Experts caution that if you haven’t already, you should do it immediately to avoid financial ruin and a miserable death experience for a loved one.
The Census Bureau predicts that elderly adults will surpass children for the first time in American history in ten years. In 2034, there would be 77 million individuals over the age of 65, compared to 76.5 million persons under the age of 18. Nearly 1 in 4 Americans will be 65 or older by 2060, while the number of people aged 85 and above will triple and the number of Americans living to be 100 will increase by 500,000.
With this anticipated increase, there will likely be a rise in demand for healthcare services, in-home caregiving, and assisted living facilities in America. But the expense of that treatment is unbelievable. According to a Genworth Cost of Care Survey from 2021, the average annual cost of assisted living is $54,000, the average cost of a private nursing home room is $108,405, and the average cost of basic home care assistance for five days a week, eight hours a day is $56,160.
The National Health Expenditure estimates show that from 2018 to 2027, spending on home health care will rise by 83%, while spending on nursing homes and other continuing care retirement communities would rise by 58%.
According to Michelle Griffith, senior wealth advisor at Citi Personal Wealth Management, this could be the next public health emergency.
I having health insurance, what happens?
Most health insurance policies do not include long-term care.
Only short-term acute care, generally for accidents, illnesses, urgent and emergency requirements, and for recovery or rehabilitation following surgery, is covered by Medicare and supplemental insurance, or Medigap.
Because long-term care is not seen as medical treatment, they do not cover it. According to Medicare.gov, it is instead classified as “a range of services and support for your personal care needs” to help with daily living.
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For as long as there is a need, only Medicaid will cover non-medical, long-term nursing home care. Medicaid, however, is only available to those with low incomes, leaving a sizable portion of Americans to fend for themselves.
Paying out of pocket could be acceptable if you’re wealthy, but most Americans aren’t so fortunate. According to figures from 2021 compiled by Pew Research Centre, half of the population is middle-class.
“The forgotten middle,” according to Narda Ipakchi, vice president of policy at The SCAN Foundation, a private nonprofit organisation that specialises in caring for senior citizens. They are extremely vulnerable. They are paying out of pocket, which is excessively expensive, as they do not qualify for Medicaid.
What steps are taken to assist?
Friends and family are currently filling in as needed. According to The SCAN Foundation, more than 50 million persons in the United States provide unpaid care to family, friends, and neighbours. According to the report, they make up the “invisible backbone” of American healthcare, spending each about $7,000 on personal expenses like housing and healthcare related to caregiving. Additionally, according to AARP, their unpaid work is worth $600 billion annually.
“If we don’t keep these millions of people who provide free care for loved ones at home, there’s no way our health care system can cover their absence,” said Randy Wolfe, one of those unpaid carers who looked after his elderly parents and who is also a senior, set to turn 70.
