"Almost half of everyone over age 65 spends some time
in a nursing home. "
"A
stay costs about $2,000 to $5,000 a month, and that is expected to rise to an estimated
$7,000 to $18,000 by 2023."
"No matter what age you are now, if you
were to buy a mid-priced long-term care policy you'd probably pay out less for your
lifetime of premiums than you would for one year in a nursing home."
The greatest threat to life savings is
not acute illness but long term care.
 | In reality, today about 1 in 10
Americans older than 65 and almost half of Americans age 85 and older who live in the
community require assistance with their every day activities. The risks of needing nursing
home care are also substantial. Nearly half of women and one-third of men age 65 and older
will need a nursing home stay sometime during their lifetime. (Testimony before the
U.S. Senate Special Committee on Aging, March 9, 1998) |
| Overall, 1.8 million Americans are in nursing
homes; the cost last year was $87 billion. About half of that, or $44.9 billion, was paid
by Medicaid, the federal-state program intended to provide health care to the poor. That
tax bill is equivalent to $173 each from all 260 million men, women and children in
America. As the aging population swells, the burdens will only get worse. (Philadelphia
Online, 3/30/98) |
The need for long term care is growing.
| By the year 2030, when the last of the baby
boomers reach retirement, it is estimated that the number of elderly individuals will
double from 35 million to nearly 70 million. Over 20 percent of the population will be
over 65 in 2030, compared with 13 percent in 1990. This means that in about thirty years,
32 states will resemble Florida’s population today. (Testimony before the U.S.
Senate Special Committee on Aging, March 9, 1998) |
| Today, the average life expectancy at birth
is 79 years for women and 72 years for men. Life expectancy is projected to increase into
the next century, increasing at a slightly greater rate for women. Since women have a
longer average life expectancy than men and also tend to marry men older than themselves,
7 out of 10 "baby boom" women will outlive their husbands -- many can expect to
be widows for 15 to 20 years. (Administration On Aging, 3/30/98) |
| By the year 2020, older women will account
for 85 percent of persons aged 65 and over who live alone. Given these factors, home and
community-based services, which include personal care services, assistance with household
tasks, transportation, and attention to health needs, are critical to the well-being of
older women today and will play an increasingly important role in meeting their diverse
needs well into the next century. (Administration On Aging, 3/30/98) |
Americans are waking up to the
financial risk.
| Since 1990, the costs per stay have increased
at an annual average rate of 3 percent above the rate of inflation. Assuming this trend
continues, the annual cost of a nursing home stay is expected to increase from $40,000
today to $97,000 (in 1996 dollars) by 2030. (Testimony before the U.S. Senate Special
Committee on Aging, March 9, 1998) |
| Though government pays for a large portion of
long term care costs, if baby boomers fail to plan ahead and purchase private insurance,
much of the burden of rising nursing home costs will continue to fall on individuals and
their families. Currently about 48 % of nursing home costs are paid for by individuals in
the form of out-of-pocket costs. (Testimony before the U.S. Senate Special Committee on
Aging, March 9, 1998) |
| Long term care, whether at home or in a
nursing home, often can wipe out the life savings of a chronically ill patient in one year
or less. (Washington Times,2/16/98) |
| Medicare covers only skilled daily care up to
100 days, which is less than 9% of nursing home costs. |
| Long term care is not covered by health
insurance or Medigap supplements. |
| Medicaid patients depend on the government to
determine the type of care received. |
| Due to growing publicity, Americans are
waking up to this serious financial risk.
|
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