Paying for Long Term Care

The majority of baby boomers have not planned accordingly for long-term care expenses and mistakenly believe they have the resources to cover such care. According to a survey released earlier this week by America’s Health Insurance Plans (AHIP) among boomers nearing or at age 60, only 25% say they are “very familiar” with long-term care insurance. About 30% of boomers think they have long-term care coverage, but only about 5.2 million Americans actually are covered, AHIP reports. Nearly 70% of Americans have not made any plans for their own, a spouse’s or another relative’s long-term care needs, even though more than half those surveyed have had a loved one who needed some form of long-term care, according to a recent survey from Genworth Financial. One year of long-term care in a private nursing home room in 2007 cost an average of $74,806 nationally. Home care, which is how the vast majority of long-term care is provided, costs an average of $52,977 per year. At least 44% of Americans incorrectly believe that Medicare pays for long-term care. It only pays if you are hospitalized and then are discharged to a care facility from that hospitalization and then it only covers a certain amount of days. Your health insurance doesn’t cover it either. So unless you buy long-term care insurance you will rely on your own assets until they are depleted and you can apply for Medicaid. The good news, more than 90% of employers offering long-term care insurance are ready to help pay for the benefit, according to study issued by Unum earlier this week. However not all employees offer this benefit. As we keep stressing more of the burden of healthcare is falling on the consumer’s shoulders. Pay attention to this and prepare now for your golden years.

Nursing Home Heroes

I had the opportunity to attend the American Health Care Association annual meeting in Boston last month where I spoke about marketing issues at their assisted living day. Afterwards I attended a luncheon that recognized long term care heroes. Benjamin Thacker of Charlottesville, VA has been volunteering in nursing homes since he was a kid. He has countless hours of service to our eldest. He simply shrugged it off and said "It's part of who I am."

Brenda Caudillo, a Medication Aide at Golden Living Community in Scottsbluff, NE was awarded the Noble Caregiver in Assisted Living Award for making the quality of life for those she cares for a great one.

Helen Crunk received the NCAL Administrator of the Year Award. She runs Victoria Gardens in Bellevue, NE.

Congratulations to all the award winners and all the heroes who work on the front lines in our nation's long term care facilities.