How to Cover the Cost of Long-term Care

The cost of long-term care just keeps going up and most Americans keep believing — incorrectly — that the government will cover most or all of it.

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Those are the findings of a new report, the Genworth 2017 Cost of Care Survey, released today by Genworth Financial.

“Our population is aging, living longer, and not prepared,” said David O’Leary, president and CEO of Genworth’s US Life division. (Genworth is a provider of long-term care insurance, among other products.) He said the company hopes that its annual survey will help people start planning for their long-term care needs.

Nursing Home Care: Now Over $97K a Year

A private room in a nursing home now costs consumers more than $8,000 per month, or $97,455 per year, according to the report, which provides national median figures. That’s an increase of 5.5 from just one year ago and a nearly 50% increase since 2004.

A semi-private room is less expensive, but still carries a hefty price tag: $85,775 per year.

One factor influencing those prices may be government oversight of hospitals, said Gordon Saunders, senior brand manager at Genworth.

Hospitals are under pressure to cut costs and get patients discharged more quickly. Patients who might have spent a week in the hospital in years back may now only spend three days. Once they then go to the nursing home for rehabilitation, they are sicker and require more care — and in turn, the nursing home may have to put more staff, or more experienced staff, on duty, Saunders said.

Biggest Long-Term Care Hike: Home Health Care

Of the other types of care included in the study, the category that jumped the most in percentage from 2016 was home health aide. The annual median cost went up 6.2%, to $49,192 per year. Unfortunately, that doesn’t mean you or your loved one would be covered round-the-clock with an aide. Rather, that’s the median national price for 44 hours per week.

There are several potential reasons for this hike, Saunders said. They include the increasing demand for caregivers; an increase in the minimum wage in some geographical areas, making other jobs more attractive and a 2015 federal law that requires most direct care workers be paid minimum wage and overtime pay.

See the graph below for details.

Median Annual Cost of Long-Term Care

Adult Day Care (5 days/wk)$18,200
Assisted Living (one-bedroom)$45,000
Homemaker Services (44 hrs/wk)$47,934
In-Home Health Aide (44 hrs/wk)$49,192
Nursing Home (semi-private room)$85,775
Nursing Home (private room)$97,455

Source: Fenworth 2017 Cost of Care Study

How Will We Pay?

70% of people 65 and older will need some kind of long-term care eventually. The obvious question then becomes, who will pay this necessary, but hugely expensive bill?

In a companion survey gauging Americans’ thoughts about long-term care, Genworth found that two-thirds of respondents expected government programs to cover all or part of the costs.

But that’s not going to happen — with a few exceptions.

Medicare does not cover nursing home care except for limited stays after a hospital admission of three days or more. Nor does Medicare pay for in-home care if it’s not skilled nursing care.

Medicaid rules are different for every state. But generally, an individual must have $2,000 or less in assets ($3,000 for a couple) before he or she can be eligible for Medicaid. The rules are complex; find more information about Medicare and Medicaid and long-term care here.

“One thing we see in the survey research is that there’s confusion. I think there’s a lack of education of: How much do things cost? How do they work?” Saunders said.

“It’s really important to be able to plan for one’s long-term care needs, especially as we all begin to age,” he added. “This is starting to become a societal issue. It’s definitely become a silent crisis that is going to need people to act before it gets any worse.”

How Genworth Got the Numbers

The Genworth long-term care price figures were calculated from surveys filled out by more than 15,000 long-term care providers. Those include nearly 4,000 nursing homes (18% of all certified and licensed nursing homes); 6,300 assisted living facilities (15%); 4,000 home care agencies (18%) and 1,300 adult day facilities (36%).

By Emily Gurnon, Next Avenue Contributor 

How to Declutter your Life – Lessons from Nature

How to Declutter your Life - Lessons from NatureThere is a natural order to the world. Think about it. There are all sorts of ways that nature keeps a balance to prevent clutter. Rain washes away debris and feeds the earth. Flowers die and drop seeds to reproduce more flowers. Forest fires rekindle growth in over grown areas. Even as human beings we are here for a short period of time and then we make room for the next generation.

It is funny how nature understands this law of physics but humans don’t. Most of us don’t understand that there is only so much that we can allow into our lives before it becomes fatal. By fatal, I don’t mean we die, I mean aspects of our life die.

For instance:

  • We eat too much and it affects our health so we can’t be as active, restricting our experiences.
  • We schedule too much and then can’t keep up on many aspects of our lives from maintaining our homes to maintaining our relationships.
  • We invest in too many material “things” and forget to invest in our emotional, mental and physical wellbeing instead.
  • We spend too much and then worry too much because we don’t have enough money to spend more.

If we can set limits and take to heart the natural order of the world, we could have fuller, more balanced lives. Can you imagine how different your life could be if you just set limits on these three aspects of your life:

  • Limits on what and how much you purchase or acquire
  • Limits on what you say yes (and no) to
  • Limits on how many hours you work

Less is sometimes more. #SimpleLife #HappyLife

Think about it…

Blessings,

Fran

Learn more about how we can help declutter your life: Hoarding and Mental Health – Finding the Support You Need

Geriatric Care Management for Adults with Schizophrenia

Drawing on our firsthand experience with the effects of mental health issues on a family, we focus our efforts on maximizing every support resource available.

Our first step toward achieving and Living Life With Dignity is recognizing what role mental health plays in a client’s life.

During an initial assessment with a client, the family and doctors, we learn which issues have been resolved and where struggles continue to occur. Following that meeting, an assessment is developed based on the results of that collaboration. We provide an assessment document highlighting recommendations for a life/care plan, as well as an affordable fee structure.

A life/care plan is then developed through additional, very specific client interviews and outreach to our network of community resources. Our associates work hand-in-hand with clients, their families and/or caregivers to make sure the plan works in everyday situations.

Case Study

Supporting adults with schizophreniaThis case study involves a 62-year-old female diagnosed with Schizophrenia. At the time, Alice* was living in a nursing home with outside advocacy. Alice’s father was appointed as her guardian after her mother’s death; however, health issues prevented him from assisting in her care.

Alice believes that her mother is still alive and that her family has faked her mother’s death. She was oppositional at first but is now compliant, although still delusional after a year of treatment. She suffers from mild paranoia and does not maintain activities of daily living unless prompted.

She was in a secure environment; however, her Attorney was concerned that she was not getting proper care. She needed clothes, toiletries and reading materials, and her father needed to be removed as guardian due to his competency issues.

  • Living Life with Dignity stepped in and provided the following services:
  • We were appointed as Alice’s Guardian;
  • We attended to all of her care plans;
  • We advocated for her legal rights;
  • We accessed her current mental health status to acquire a more appropriate living environment and facilitated her change in residence;
  • We secured outside professionals for additional evaluations; and
  • We visited regularly to ensure proper care and to provide companionship.

*Not her real name.

Do you have any questions about support and advocacy for adults suffering from schizophrenia? Post a comment below!