From the Desk of Bob McNett……
Costs of Long-Term Care Increasing at Twice the Rate of Inflation……
Nursing homes, assisted living communities, home health aides and adult day care are absorbing a larger and larger chunk of our national income, as people continue to realize longer life spans.
Says Greg Crist, spokesman for the American Health Care Association, “Nursing Home costs are rising largely because residents are more likely to arrive with chronic conditions like diabetes or emphysema that need more medical attention.” He added that the average nursing home resident takes eleven prescription medications.
“They’re living longer, but not necessarily living healthier, “ said Crist.
The huge Baby-Boom generation is now experiencing the cost of many of their parents currently facing long-term care, with the oldest of these Boomers coming to an age where they are more likely to begin facing these costs themselves.
Medicare doesn’t cover long-term stays, so a large swath of people face spending down personal assets until they qualify for the government’s health insurance program for the poor, Medicaid.
Private nursing home room cost now averages $92,378 annually, a nearly 19 percent increase since 2011. Assisted living communities, a somewhat lower level of care, averages $43,539 this year, and in-home health aides, who assist patients with non-medical tasks like bathing or dressing, average $46,332 annually.
When the Affordable Care Act was being debated several years ago, before being passed into law, a part of the discussion was forming a national, government-sponsored long-term care insurance program. However, the projected premium costs were so high that the concept was tabled for possible future consideration. For now, a number of private insurers do offer comprehensive long-term care coverage, even though several major insurers have bowed out of this business in recent years, and premiums keep escalating to cover increasing claims.
Robert K. McNett, LUTCF
The McNett Agency
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