With a new year ahead, we have 365 more opportunities to make every day count and make a life worth living. However, one thing we should not take chances on is planning for long-term care. Life is full of surprises; you never know when you need a long-term care planner.
We all must have thought about living a long and healthy life at least once, but unfortunately, the reality is far more disappointing. Planning for long-term care ahead of time is a must for a comfortable and secure future.
Understanding the Rising Cost of Long-Term Care
Long-term care services are expensive. The COVID-19 pandemic significantly influenced nursing homes and assisted living communities, losing approximately 425,000 workers. This created staff shortages, resulting in the rising cost of long-term care services.
Every long-term care plan, home care, nursing facility, or assisted living has an overwhelming financial burden. Let’s take a deeper look into some stats:
What is the Average Cost?
For planning long-term care, you have three options: home care, assisted living, and a nursing facility. Although the cost depends on various factors, the average price can be estimated. Starting with the least expensive home care, estimated at $4500 each month; assisted living at $5350 a month; and the most expensive one, nursing home facilities, at an average of $8000 to $10,000 per month and sometimes even more.
How will it affect middle-class and affluent Families?
These expenses are not something a middle-income family can bear. Planning long-term care becomes a huge financial burden and forces them to take out their savings. These expenses put a huge financial strain on many families. Due to an already restricted budget, many people find themselves unprepared and fall into economic despair.
What’s the Future of Inflation?
Care planning in long-term care facilities is projected to become even more expensive in the coming years. As our population grows and the demands increase, the current workforce cannot meet the needs, and the prices get high. Inflation also plays its role, making it difficult to plan for long-term care. This factor makes it even more challenging to plan.
Misconceptions About Medicare and Medicaid
Many people rely on government Medicare and Medicaid plans for their medical needs. Unfortunately, these programs do not account for your retirement plans. Your long-term care plans need to come from your own pockets. This misconception often results in poor planning for long-term care, leading to many problems ahead.
Medicaid has Limitations
People often assume their Medicaid will cover all the long-term care costs; however, these programs are not designed for extended periods. The vast majority of the current population needs long-term care planners, which is raising the demand at an unprecedented rate. Medicaid programs only cover limited short-term care, leaving a significant gap in long-term care planning.
Are You Eligible for Medicaid?
Medicaid programs are specifically designed for middle-class families with low incomes. Not everyone can qualify to get into a Medicaid program. However, if you pass the eligibility criteria for Medicaid, it only covers the basics, leaving you with much to plan. Moreover, finding a facility that takes Medicaid patients is one of the challenges in long-term care as they only accept a limited number of patients.
Is Relying on Government Programs Risky?
Relying on Medicare or Medicaid programs for long-term care is risky. It leaves you unprepared for many unforeseen circumstances. These programs only provide limited coverage, restricted nursing home stays, need co-pay, and only cover specific services. Hence, you must consider saving up ahead of time and getting insurance to fill in the remaining gaps.
Navigating the Complexity of Long-Term Care Insurance
Challenges in long-term care don’t end there. Although long-term care insurance is a very beneficial solution, understanding its potential difficulties is essential for making future decisions. Make sure to read and understand the policies and terms & conditions carefully before you commit to any insurance policy for long-term care planning.
Are You Missing Something About LTC Insurance Policy?
Similarly to Medicare, LTC insurance doesn’t cover everything. So, if you think your insurance is all you need, you are unprepared for what’s to come. Are You Eligible to own an LTC plan?
These insurance policies only go so far. Certain conditions for insurance policies are already out of the books. If you already have those problems, you may not qualify for specific insurance plans. You can go for premium options, which are still very uncertain and can rise significantly over time.
Should You Get LTC Insurance or Go for Alternatives?
Choosing your LTCI needs extensive research on available resources. Moreover, future health conditions must be considered, which might change your long-term care planning. Hybrid policies are becoming popular.
The Uncertainty of Future Health Needs
Who knows what the future holds? And that’s one of the biggest challenges in long-term care. The uncertainty of future health issues makes it quite difficult to plan. Almost all of us never entertain the possibility of contracting chronic illnesses or cognitive disorders due to aging.
Although it’s challenging to predict the onset of these unforeseen diseases, you can take family history into account for some clues. Furthermore, diversify your options and use flexible insurance plans with emergency savings.
How it Affects Your Families Emotionally & Financially?
The emotional and financial burden is not a secret. When a family member is going through a hardship, it takes a huge toll on everyone. Caregivers get stressed and burnt out due to extended periods of extensive care and financial resources running from hand like sand. Hence, it is necessary to openly converse with family members about care plans, finances, and preferences, significantly reducing the toll on your family.
Crafting a Personalized Long-Term Care Plan
You need to take a few significant steps to create a tailored long-term care plan.
- Consult a professional long-term care planner and elder law attorney for professional advice and guidance.
- Research your options and calculate your cost, considering everything, including unexpected health circumstances, inflation, and aging factors.
- Accumulate diverse resources to fill in gaps in all. A balanced combo of Medicare, personal savings, and insurance plans gives you the most security.
What Major Challenges Have Faced the Long-Term Care System in the Recent Years?
Recently, we have observed many significant challenges in long-term care, which unfortunately has worsened the condition. Let’s have a dig at some of the considerable challenges in long-term care:
- Staffing Shortage– This is a significant issue caused by the imbalance of demand and supply. The LTC industry has a very high turnover. In 2022, a survey suggests 98% of nursing homes are having difficulty hiring.
- The influx of High Acuity Patients– our growing population is increasing the number of high acuity patients, a significant concern as the staff shortage is unprepared to handle such an influx, leading to less attentive care.
- Lack of Resources– not all care facilities have abundant resources to offer extensive care. The federal government does not support the LTC industry. Additionally, lower wages are also creating challenges.
Why is Long-Term Care a Risk When Planning for Retirement?
Retirement planning often does not account for long-term care. Hence, it becomes a serious risk to future security. The cost of medical needs can quickly burn all your retirement savings, leaving you with nothing at the end. Make sure you plan for both and align them perfectly to enjoy your retirement without a care in the world!
Preparing for the Future with Confidence
You need to plan and consider everything so you can tackle anything life throws at you when planning for long-term care. Get the hang of challenges in long-term care, consider inflation and other financial issues, and make a strong care plan combining flexible insurance policies and emergency savings. Contact Lavine LTC Benefits today to learn more about securing a long-term care insurance plan in Washington.