Why can the costs of long -term care be a “big problem”

Long -term care can be expensive, exceeding $ 100,000. However, financial advisors say many families Not ready for management Expenses.

“People are not in advance,” said Caroline McLanahhan, a certified financial doctor and planner in Jacksonville, Florida. “It is a big problem.”

More than half, 57 %, from 65 -year -old Americans today will develop a serious disability enough to require long -term care, according to 2022 a report It was published by the US Department of Health and Humanitarian Services and the Urban Institute. Such disabilities may include cognitive or nervous system disorders such as dementia, Alzheimer’s disease, Parkinson’s disease, or complications of stroke, for example.

The HHS-Orban report said that the average future cost of long-term care for a 65-year-old person today is about 12,2400 dollars.

But some people need care for many years, which prompted the costs of age to hundreds of thousands of dollars – an amount “far -reaching for many Americans”, its authors, Richard Johnson, wrote.

It is expected that the number of people who need care will be enlarged with the passage of the American population Amid an increase in life.

“It is largely clear (workers) this amount of savings in retirement, and this is the amount of savings in examination or savings accounts, and the majority does not have long -term care.

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

On the national level, it costs about 6300 dollars per month for the home health assistant and 9700 dollars for a private room in a home to take care of the usual person, According to To 2023 data from GenWorth, Insurance Company.

Many families seem unaware of potential costs, both for themselves or for their loved ones.

For example, 73 % of workers say that there is at least an adult who may need him to provide long -term care in the future, according to a new poll conducted by the Institute for the Research of the benefits.

However, only 29 % of these future care providers – who may penetrate at least part of the Future Bill – have estimated the future cost of care. Among those who did it, 37 % believed that the brand would decrease to less than $ 25,000 per year, the group said.

EBRI survey surveyed 2,445 employees from 20 to 74 years old in late 2024.

For example, Medicare may partially cover the “skilled” care for the first 100 days, said McLanahhan, founder of Planning Partners and a member of CNBC’s Financial Adviser. She said this may be when the patient asks a nurse to help rehabilitate or medical management, for example.

But McLanahhan does not cover the “guard” care, when someone needs help in daily activities such as bathing, wear clothes, bathing and eating. These basic daily tasks constitute the majority of long-term care needs, according to the HHS-Orban report.

Berden said Midikid is the biggest motivation for long -term care costs today. Not everyone qualifies, though: Many people who get Medicaid are of low -income families. To get the advantages of long -term care, families may first have to exhaust a large part of their financial assets.

“You must be essentially.”

Republicans in Washington Weight discounts to medicaid as part of a large tax package. Experts said that if it succeeds, it is possible that the Americans will get the advantages of the long -term care.

A few families have a precautionary insurance of insurance against long -term care risks: about 7.5 million Americans had a form of long -term care insurance coverage in 2020, According to To the service of Congress research.

Compared to, more than 4 million children’s births It is expected to retire Annually from 2024 to 2027.

Washington State has a long -term public care insurance program for the population, and other states such as California, Massachusetts, Minnesota, New York and Pennsylvania Explore them.

McLanahhan said that long -term care insurance is very logical for people who have a high risk of long care. She said this may include those who have a great danger of dementia or have longevity in the history of their families.

McLanahhan recommends choosing Mixed insurance policy that combines life insurance with long -term care benefit; She said that the independent traditional policies for long -term care are generally expensive in general.

She said, be careful of how politics is to pay benefits as well.

For example, “payment” policies require the insured to choose from the list of favorite service providers and provide receipts for payment. She said that some, especially the elderly, may be difficult without help.

Through the “compensation” policies, which are recommended by McLaanhan, insurance companies generally write interest checks as soon as the believer is a qualified believer for help, and they can spend the money they see appropriate. However, the interest amount is often less than payment policies.