Why long -term costs can be a “huge problem”

Long -term care can be expensive by pulling over $ 100,000. However, financial consultants say many households are not ready to manage Costs.

“People do not plan it in advance,” said Carolin McClaneakhan, a doctor and a certified financial planner based in Jacksonville, Florida. “This is a huge problem.”

More than half of 57%of Americans who are 65 years old today report Published by the Ministry of Health and Human Services of the USA and the city institute. Such disadvantages can include cognitive or nerve disorders of the system such as dementia, Alzheimer’s or Parkinson’s disease, or complications from stroke.

The average future expenses for long-term assistance to those who are 65 years old today is about $ 122,400, HHS -urb said.

But some people need care over the years, pushing the cost of hundreds of thousands of dollars – the sum “on the border for many Americans,” the authors of the report Richard Johnson and Judith Day wrote.

Expected the number of people in need Against the background of increased longevity.

“Quite clearly (workers) do not have this savings on retirement, such savings on their check or savings accounts, and most have no long care insurance,” said Bridget Berden, research and development strategists.

“So where do the money come from?” She added.

At the national level it costs about $ 6,300 per month for health assistant and $ 9,700 per private room in the nursing home for a typical person In the hall By 2023, the GenWorth Insuretor data.

Many households do not seem to know about potential costs, either for themselves or for their loved ones.

For example, 73% of workers say there is at least one adult who may need long -term assistance in the future, reports a new poll of the employee’s payments institute.

However, only 29% of these future caregivers – which may end, at least part of the future bill – calculated the future care costs, revealed Ebra. Of those who did this, 37% believed that the price tag would drop below $ 25,000 a year, the group said.

The EBRI survey questioned 2445 employees between the ages of 20 and 74 at the end of 2024.

For example, Medicare can partially cover “qualified” care within the first 100 days, said McClaneakhan, founder of Life Planning Partners Council Financial Advisor. This may be when the patient requires that the nurse help, for example, in rehabilitation or the introduction of medicine.

But Medicare does not cover the “custody” when someone needs help in daily events such as bathing, dressing, using a bathroom and food, McKlanakhan said. These basic everyday tasks are most of the long-term assistance needs, HHS-HURBAN said.

Berden said Medicaid is the largest long -term payer. But not all qualified: many people who benefit Medicaid are from smaller income households, Berden Ebra said. To get long -term benefits, households can first exhaust a large piece of their financial assets.

“You should mostly be disadvantaged,” said McKlanakhan.

Republicans in Washington Weighing Medicaid cuts as part of a large tax package. Experts have stated that Americans would probably be harder to get help on Medicaid for long -term help.

Few households have insurance policies that are specifically hedge from the risk of long -term care: about 7.5 million Americans had some form of long -term insurance in 2020, in 2020, In the hall to the scientific -research service of Congress.

For comparison, over 4 million baby boomers Expected for retirement In the year from 2024 to 2027.

Washington State has a long-term state insurance program for residents, and other states such as California, Massachusetts, Minnesota, New York and Pennsylvania study your.

McKlanakhan said long -term insurance policies have the most meaning for people who have a high risk of long -term care. This may include those who have a high risk of dementia or durability in their family history, she said.

McKlanakhan recommends choosing hybrid insurance policy that combines life insurance and long -term assistance; She said that traditional autonomous policy designed only for long -term assistance.

According to it, it also refers to how the policy pays the benefits.

For example, the “compensation” policy requires the insured choice from the list of prevailing providers and submit reimbursement, McKlanakhan said. For some, especially the elderly, it can be difficult without help, she said.

With the “compensation” policy recommends McClaneakan, insemingers usually write pay checks as soon as the insured qualified for help, and they can spend money as they think fit. However, the amount of assistance is often lower than the compensation policy, she said.