Do You Ignore Long-Term Care?

By Gene Fink

Most Americans fear they'll need long-term care at some point after retirement, but only a small percentage are are doing anything about it, according to a survey conducted. It states that about 85% of respondents worry about needing long-term care at some time in their future and this is an increase from 80 percent a decade ago.

Long term care addresses a wide range of long term care and supportive services for people who may have cognitive impairment or who are unable to accomplish certain activities of daily living over an extended period of time. These can include activities such as bathing, continence, dressing, eating, toileting, and transferring. Provided in a variety of settings, including your home, assisted care facilities or nursing homes are long term care services and it can be very expensive as well.

Believing that Medicare and/or Medicaid will help fund their long-term care expenses is a mistake that most Americans tend to make. Of course, this is not really true. There are those who feel that they will be able to "trick" the system, but this has become much more difficult to do. The Deficit Reduction Act that was signed has caused most states to radically alter Medicaid parameters and long term care programs. The loopholes are being closed.

Another thing that the study found out is that about 60 percent of the respondents worry about paying for long-term care, but nearly 70 percent of these people said they have done little planning, if any, for long-term care needs. There's also the fact that Americans are living longer, care costs are rising, and company pension programs are being cut back. There is a looming crisis in America because the average cost of nursing home care has risen to more than $71,000 a year and the costs for in-home care are also rising and it is apparent the rate of future increases will continue to be high. In other words, Americans are not facing the realities of what lies ahead, especially the potential need for long-term care.

Right now, Americans seem to be avoiding the issue. A survey states that there are more than 60 percent of adults haven't tried to calculate the amount of money they need for retirement. Of those who did the calculation, nearly half didn't factor in long-term care. Of those who did, nearly four in 10 did nothing about it.

There is one important financial tool that is possibly being overlooked and that is the Long-Term Care Insurance. Many people do not realize this type of insurance can be tailored to fit a persons budget as well as help with some of the potential costs of long term care. In other words, there are many variables that can be tailored to meet an individual's financial budget as well as help with the cost of future long term care needs. In order to help develop an appropriate plan, a qualified Long-Term Care Insurance representatives should be consulted.

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