If you are paying attention to the issues that elders are facing these days one of the things that stands out is the already high and continually rising costs associated with long-term care. The United States Department of Health and Human Services tells us that around 70% of people who reach the age of 65 will someday need some type of long-term care, be it in the home, in a nursing home or at an assisted living facility.
Each year the MetLife Mature Market Institute puts out a survey that analyzes the costs of long-term care. According to their survey, in 2010 the national average for a year-long residence in an assisted-living facility was almost $40,000; this was a 5.2% increase over 2009. A year in a private room in a nursing home in the United States averaged over $83,500 in 2010, and this was an increase of 4.6% over 2009.
Anyone who is planning for the latter stages of life would do well to pay close attention to these costs, which are expected to continue to rise according to industry analysts. Below we would like to share some of the ways that people address long-term care costs.
Some people have the means to simply pay for their long-term care expenses out-of-pocket, but for many it takes careful and intelligent planning to be prepared. It is important to understand the costs involved and project increases over time.
Long-Term Care Insurance
The purchase of long-term care insurance can be a solution, but the cost of obtaining the coverage is significant and it goes up as you get older. It is a good idea to engage in comparative shopping when you are looking for long-term care insurance, pay attention to the details, and ask hard questions.
Many seniors rely on Medicaid to pick up their long-term care costs, and it is possible to qualify financially while retaining ownership of your home, your vehicle, and your personal valuables under some circumstances.
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