RAND Study Shows Half the Middle Aged Population to Spend Time in a Nursing Home
A 2007 study shows the percentage of people staying in nursing homes is much higher than previous estimates. These are shorter stays than in the past as more people require Long-Term Care at home or assisted living facilities.
Michael Hurd, a RAND senior principal researcher, noted the new assumptions that the majority of people will use nursing homes exceed past estimates of 35 percent or a little more. He said that’s probably because prior studies often did not include the type of short-term rehabilitative stays that have become an increasing share of nursing home use for people transitioning out of hospitals.
Hurd says 25 percent of the population is presumed to need 240 or more nights of care.
“If I’ve got a 1 in 4 chance of spending eight months in a nursing home, I don’t like that,” he said.
Cost of Nursing Homes are Expensive and Vary Depending on Location
Depending on location, the cost of care in a nursing home is substantial. For example, in Pennsylvania, the average cost of a skilled nursing home is running about $10,730 a month as compared to Texas, where the cost is averaging $6,938 a month. The care expenses at home or in assisted living facilities are less, but the costs keep going up. You can find the cost of care in your state by clicking here.
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Long-Term Care Insurance Pays Benefits for All Types of Care
A study of Long-Term Care Insurance claims data, gathered by the American Association for Long-Term Care Insurance, indicates that in 2018, 23% of claims paid for care in a nursing home. 51.5% of claims paid for care at home, and 24.5% of claims paid for assisted living facilities.
Long-term care services and supports are delivered in several different settings, including at home, adult daycare, assisted living facilities, memory care, and the minority of care is in a nursing home. Medicaid still remains the primary payor of long-term care in the United States, but it requires the person to be poor in order to receive those benefits.
Consequences of Caregiving on Family Creates Many Challenges
Many people must have family members become caregivers until the burden on them becomes too high. Caregiving is very challenging on loved ones, and paid care services are expensive draining savings and adversely impacting income, lifestyle, and legacy.
This is why having an advance plan to address the financial costs and burdens of aging should be a crucial part of your retirement plan. Long-Term Care insurance is easy and affordable asset protection. It will provide the resources for quality care in the setting you and your family desire.
Since the risk of needing care is so high, having a plan will safeguard the money you have saved for retirement in your 401(k) IRA and 403(b). It also will add peace-of-mind for you and your family.
Work with an Experienced and Qualified Specilaist
Experts suggest planning before you retire for the most affordable options. An experienced Long-Term Care Insurance specialist will ask you several detailed questions to find the appropriate coverage at the lowest cost. Premiums between insurance companies can vary well over 100% for the same coverage.
Most general insurance agents and financial advisors are not qualified to help in long-term care planning. Find a trusted, experienced and qualified specialist by clicking here.