November is Long-Term Care Awareness Month
Experts Warn: Plan Now or Pay Later
Deerfield, IL –Americans currently spend
more than $200 billion a year on long-term care – about a tenth of the
nation’s health care spending. But less than 10% of adults in the U.S.
have planned for their long term care needs. That number is expected to
explode as Baby Boomers age, and experts worry that few have adequately
planned for their futures.
“Nearly seven out of 10 seniors will need
long-term care services, and without proper planning, they could face
enormous liability,” said Murray Gordon, President of MAGA Limited, a
company that specializes in long term care planning. Gordon is mounting
a local public education campaign as part of Long-Term Care Awareness
Month in November. “Congress has urged Americans to learn more about
the potential risks and costs associated with long-term care as well as
the options that are available to them.”
Thanks in part to efforts such as Long-Term Care
Awareness Month, a small but growing number of Americans are beginning
to understand the benefits of planning for long-term care earlier.
According to Jesse Slome, executive director of the
American Association for Long-Term Care Insurance, the message is
starting to sink in that long-term care planning needs to happen when
people are in their 40s and 50s, when good health is more likely to
present more planning options.
Many put together a long-term care plan because of
their desire to protect their nest egg and ensure that their family
doesn’t have to bear the burden of the cost of their care.
Long-term care includes services provided to
individuals who, because of illness or disability, are unable to perform
certain activities of daily living for an extended period of time. Most
care is provided at home, assisted living facilities or nursing homes.
Long-term care is generally not covered by individual health or
disability insurance, and the cost of care can be expensive.
“The costs associated with long-term care can be
enormous. Unfortunately, without advanced planning, many people will
have to rely on their savings or on family and friends to cover the
costs. As a last resort, they may have to turn to Medi-Cal,” said
Gordon. “It’s vital to start planning well before retirement age to
save money, guarantee insurability and lock in health status to take
full advantage of good health discounts.”
Nationally, costs for long-term care can range from
an average of $20 per hour for personal home care services to $3,000 per
month for a single room in an assisted living facility and $6,360 per
month for skilled nursing care.
“Five percent of seniors already face costs of
$250,000 or more,” said Slome. “Costs over the next 10 to 20 years are
expected to double.”
The growing number of Americans suffering from
Alzheimer's Disease poses one of the greatest needs for long-term care
and certainly the most costly. "Every 72 seconds someone in America
develops Alzheimer's" explains Slome. "In 2010, over 450,000 new cases
will be diagnosed and while most are age 75 or older, the disease
impacts younger persons as well."
Five Things Everyone Should
Know About Long-Term Care
There are many myths about long-term care.
Following are important but little known facts offered by planning
expert Murray Gordon. November is Long-Term Care Awareness Month.
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Most long-term care happens at home.
While commonly associated with nursing homes most long-term care is
provided at home. According to the American Association of Long-Term
Care Insurance, more than 7.6 million individuals with long-term care
needs currently receive care at home. One million reside in assisted
living facilities and another 1.8 million are in nursing homes.
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Long-term care is a women’s issue. On
average, women outlive men by about five years. More than 70 percent
of nursing homes residents are women. Experts advise that planning
for long-term care is especially important for women who are divorced,
widowed or
single.
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Planning should begin pre-retirement.
Research shows that 45 percent of individuals applying for insurance
protection between the ages of 70 and 79 were declined due to existing
poor health conditions. Between ages 50 and 59, nearly 86 percent of
applicants still qualified and were eligible for significant preferred
health discounts.
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Insurance protection can be made affordable.
More than eight million Americans have already chosen to protect
themselves with long-term care insurance. There are numerous
discounts available for those in good health, for married couples or
partners living together. These discounts can reduce the cost from
between 20 to 40 percent annually.
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Insurance can be tax deductible. A
growing number of states now offer tax incentives to encourage
Americans to take personal responsibility for their future long-term
care needs. In addition, business owners have especially favorable
tax-advantaged options, which may allow them to fully deduct
protection for themselves, their spouses and sometimes even their
parents.
