How Prepared Are You for the Cost of Care?
As long term care costs continue to increase each year, everybody is advised to plan his long term care (LTC) early to avoid getting himself in a financial situation which only few people have managed to escape from.
Whether you decide to acquire care in a nursing home or at home or in a community-based LTC facility such as assisted living, you cannot escape the high cost of care owing to inflation. Experts on the field of LTC say the cost of care increases 5% annually, but according to a study which was conducted by a group of financial advisers the cost of care beginning 2030 will be four times higher.
If that prediction is true, can you say right now with conviction that you can afford a private room in a nursing home which charges a daily rate of $940? If your answer is no, then you really need to work out a plan for your future health care needs lest all of your money and other assets go to your LTC expenses.
In studying the cost of care it is important to look at the numbers in your area first before looking any further. Compute today’s cost of care in your state of residence, specifically in your city or town, and find out how much it will be by the time you will need LTC.
For example, if you see yourself receiving home-based care someday check the rates of home health aides in your neighborhood. If the average hourly rate of a home health aide is $19, how much would it be in 30 years or 40 years?
LTC planning is all about anticipation so apart from anticipating your possible health care requirements it’s also a good idea to compute tomorrow’s cost of care.
Future Long Term Care Costs
One reason that the cost of care is going to quadruple 18 years from now is the doubling of the elderly population.
According to the records of demographers the population 85 years old and older will surge in 2030 and most likely surpass other age groups. LTC is still associated with the elderly, although there are many young people between 18 and 64 who are receiving care, as there are more senior citizens acquiring this kind of health care service.
If there is one thing that changed in the LTC industry that would be the fact that people are given broader choices these days. Gone are the days when Americans were limited to nursing home care because a long list of LTC settings has been made available for every person’s assessment.
Not that a nursing home is the worst option, it’s just that more people prefer to receive care someplace they can remain independent. In-home care is actually favored by the majority but it’s wrong to think that this type of LTC setting will cost you less.
Your future long term care costs will not only depend on the median rate of your chosen facility but on your personal health care requirements, too. So even if you’re at home you can end up spending $500,000 a year if you are going to receive skilled nursing care apart from the installation of medical equipment, communication and security devices.
If you’re in doubt, it’s best to discuss your LTC plan with your family and a professional elder care specialist. Any crucial plan in life, after all, begins with a good discussion.
Processing your request, Please wait....
