How Will Baby Boomers Pay for Long Term Care?
By 2030 the oldest of baby boomers will be 85 years old and the youngest of the said generation would be between 65 and 66. That is going to be a critical year for the long term care (LTC) industry and the government unless long term care insurance for baby boomers would be enforced.
Unfortunately, only a small percentage of the boomer generation has successfully clinched private insurance to cover their LTC. Most are banking on their equity while the rest of them are hoping that Medicaid will reserve some room for their LTC needs.
If only there were other existing federal health care programs besides Medicaid to help out in one’s LTC. Medicare, although open to seniors 65 years and older who are in need of medical care, can only provide limited coverage. Senior folks who will turn to this program won’t receive much in benefits as it will only cover 100% of their medical expenses for the first 20 days. From the 21st to the 100th day, these elderly folks are required to comply with copayment of all the expenses that they would possibly incur in a nursing facility.
Baby boomers need to secure a long term care insurance (LTCI) policy today because if they wait another year they will never be able to do so. Besides, there have been reports circulating that LTCI carriers are planning to sell new policies at higher rates anytime soon. Most baby boomers are still active at work so they are advised to apply for a coverage before their retirement as they are still definitely capable of maintaining the premium of a potential policy.
Long Term Care Insurance for Baby Boomers
Most members of the boomer generation are successful in their respective fields and they are very independent. As a matter of fact, it appears that they had too much of independence that they now refuse to heed advice on matters that concern their future health care needs.
However, not all baby boomers are difficult to persuade to buy an LTCI policy. Some of them have managed to get hold of their policies at the age of 55 and they continue to pay the annual premiums of their coverage until the day a benefit trigger occurs.
Like most uninsured boomers, however, those with policies admit that they have not totally convinced themselves yet that they will need care someday but they applied for LTCI coverage anyway lest they get trapped financially. As mentioned in an earlier paragraph, most baby boomers have attained success in their own professional fields and thus explaining why they refuse to imagine themselves depending on some free health care program someday.
As for those without LTCI coverage, they reiterate that they have their big homes to sell should the need for care arise in the future. The question at hand is when will the housing market recover? If it does in five years’ time, that calls for a celebration but if no such thing is seen in the offing long term care insurance for baby boomers remains imperative.
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