Demand, Costs On The Rise For Long-Term Elder Care
By Tim Sheehan, The Fresno Bee | |
McClatchy-Tribune Information Services |
The median cost of nursing home care in
"As elderly people age and become more frail, the cost of providing long-term services and support grows for them and their families, and it can eventually deplete their income and savings," the
Only a small share of senior citizens or their families have adequately prepared, with either savings or insurance, for the potential costs of long-term care. Such care can range from in-home medical, personal or housekeeping assistance, to adult day care, to care in an assisted living center or nursing home that can cost hundreds of dollars a day or tens of thousands of dollars each year.
Even those who have long-term care insurance -- or those thinking about buying a policy -- must thoroughly assess their needs and understand what they get for their money.
"Every policy is different, and it depends on the client," said
An aging tide
The cumulative economic consequences are potentially daunting as the leading edge of the post-World War II "baby boom" generation reaches retirement age. In the central
The increase is even more pronounced among the elderly who are 85 or older. While they still make up only 1.5% of
The federal
"Most long-term care is not medical care, but rather assistance with the basic personal tasks of everyday life" such as bathing, dressing, eating and using the bathroom, states a 2012 report for the
On average, the government estimates that those who need help will require it for about three years -- and, the report notes, it does not come cheap unless it's in the form of in-home volunteer assistance from family or friends. "Of the average 65-year-old American's projected three years of lifetime need for long-term care, about two-thirds of that time would be spent at home and one-third in either a nursing home or assisted living facility," according to
Counting the costs
In
The
But when an elder's needs become more acute and require more assistance than families can provide, "the cost of institutional care can have a catastrophic impact on an elderly person's finances," the
The median rate for a senior to stay in a one-bedroom unit at an assisted-living facility in
Even family members and friends pitching in to care for an elder at home comes with costs that don't necessarily show up on the bottom line. The
"Choosing to provide informal assistance to a frail elderly person may entail a substantial sacrifice of free time on the part of a caregiver," the CBO reported. "More than half of all informal caregivers work full time in addition to providing such care, and the burdens for caregivers who do not work full time may also be substantial."
Few are enrolled
Even as the overall population ages and the number of elderly grows disproportionately -- increasing the demand for long-term services -- "private long-term care insurance coverage is uncommon among elderly people receiving long-term services and supports," the
Among the overall adult population in the U.S., "only about 3% had LTC insurance in 2011," according to the CBO report.
Enrollment in private insurance coverage to backstop what
"The slower growth is coming at the same time that the age group most likely to purchase LTC insurance -- people ages 55 to 64 -- is reaching its peak as a share of the U.S. population," the CBO stated.
Expensive insurance
Torres, the HICAP insurance counselor, said cost is the biggest reason people tell her they don't have long-term care insurance.
"A lot of them say it's too expensive -- especially the younger generation," she said. "I do talk to quite a few people in the older generations who purchased it when they were younger, through work, and they have policies because they paid into it already. But once they leave their jobs, they usually drop the insurance, too, because it's expensive."
The federal HHS department reported that in 2010, the average annual insurance premium for long-term care coverage was almost
And people who are already in poor or declining health may not qualify for coverage from insurers, or face higher premium charges or limitations in the level of coverage they can buy. About one out of every five people who apply to buy a long-term care policy is denied coverage because they cannot pass the insurance company's health screening.
The differences in cost based on a person's age are startling. An analysis by the
Under age 55:
55-64:
65-69:
70-74:
75 and older:
Sources of confusion
There's plenty of room for confusion when it comes to long-term care. Some policy owners get caught off guard when insurance companies raise their premiums, Torres said.
"What we've been getting is that when rates go up or companies get out of the (long-term care) business, people want to look at either dropping or reducing their coverage because they can no longer afford what they have," she said.
Torres said
But
It wasn't until 2011 that the government's "
"It's so important to know what the fine print says," Torres said. "We sit down with the seniors -- or more often with their children who are trying to figure it out for them -- and review what they have and what they need. We really go over policy so they can take advantage of what is covered."
To learn more
The Health Insurance Counseling and Advocacy Program, or HICAP, is a free service for seniors who qualify for
In
In
More online
Several online resources are available with information about long-term care strategies:
The reporter can be reached at (559) 441-6319, [email protected] or @TimSheehanNews on Twitter.
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