Pay for Long Term Care or Buy a Plan?
New York long term care costs are getting higher each year that is why many New Yorkers are praying that they never live to pay for nursing home care.
Unfortunately, longevity is expected out of this generation and health care professionals said baby boomers are going to live into their 90s or even hundreds. Instead of praying for an early death to avoid an event that would necessitate them to acquire long term care (LTC), they might as well start working out an LTC plan to avoid out-of-pocket expenses that could exceed a million.
Paying millions for care is not a myth especially if you live in busy New York where the cost of care is just as high as the cost of living. At present, families with loved ones who are receiving in-home care are spending from $48,048 to $50,450 every year on average for a home health aide. Those who cannot afford these figures have opted to retire early from their jobs so that they can take care of family members who require assistance with their activities of daily living (ADL) such as bathing, dressing, eating, use of the toilet, management of continence, and transferring specifically from the bed to a chair or vice versa.
Some in-home care recipients in New York are spending close to $100,000 annually because apart from assistance with their ADLs they also need somebody to perform household chores for them since they are living alone. This is common among individuals who are unmarried, childless, widows, and widowers.
Since a home health aide’s scope of work does not include housekeeping and other household chores, the person receiving in-home care should ask his or her home health care agency to provide homemaker services which cost $23 per hour or $186 daily in New York.
Soaring New York Long Term Care Costs
If some elderly and disabled people in New York are spending a fortune for personal care or custodial care at home, what more those with serious medical conditions that have to be addressed in a nursing home?
Residents of New York nursing homes, or their families, are paying $320 daily, on average, for a private room. In the past, individuals who relied on Medicaid for their nursing home needs had nothing to worry about since this federal health insurance program would shoulder 100% of their LTC expenses. However, since the government restructured the eligibility process of Medicaid nursing home residents who are dependent on the said program are required to pay a portion of their incurred LTC expenses.
Nursing home care is more expensive to elderly folks in their 80s and 90s than those in the lower age groups. In less than 20 years the cost of care in New York and the whole country, for that matter, is expected to rise fourfold so anyone who is expecting to turn 80 around that time should be prepared financially.
Now if you are not confident you’ll have $2-million in assets by 2030, you’re better off securing a long term care insurance (LTCI) policy for it has been proven that this is the only product that can grant you access to all levels of care while protecting your assets from high New York long term care costs.
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