The Challenge Of The Rising Cost Of Long Term CareIt is expected that within a few years, the number of seniors, those who are 65 years old and above, in the United States would double. An estimated 8% of these people obtain the services of nursing homes. Others are placed in institutions while the rest stay at their respective homes while availing of assistance by nurses, caregivers, housekeepers or meal delivery services. Given this data, it is alarming to note that the cost of long term care is rising faster than the rate of inflation. The median age for American citizens is 60 however; this has been increasing through the years. The higher the median age, the higher the life expectancy will be. The problem of longevity is the onset of medical problems or chronic ailments that will require hospital or nursing care. While relatives and family members can take care of old relatives, it is commonplace in the United States to hire a complete stranger to provide nursing care. Other services like physical therapy, drug administration and food preparation would also have to be paid for. Due to this, the cost of long term care can seriously deplete the financial resources of a person. There are many ways for seniors to finance a long term care. A senior could utilize his personal savings for this or he could ask friends and families to donate money for this purpose. Other alternatives include the purchase of a private insurance policies and public programs like Medicaid and Medicare. The cost of long term care may be too burdensome for an individual especially at an advanced age. Experts recommend that long term care policies should be purchased even before there is actual need for it. This is because premiums for these usually become more expensive, the older the policy holder is. There are three factors that influence the cost of long term care. These are the general level of charges in the state where a person is located, the specific expense rate for needed services and the duration of long term care. Rates of LTC services may vary from state to state. According to a survey conducted by the MetLide Matura Market Institute (MMI), the monthly cost of a semiprivate room in a nursing home in Los Angeles averaged at $3000 while the same costs $9, 250 in New York. Moreover, as of August of 2005, cost of assisted living and home health care range from $1,650 to $4,300 across different states. Recent studies have revealed that most Americans are not prepared to face the rising cost of long term care. In fact, a significant percentage of these people do not recognize the need for it. This is generally attributed to the misconception that long term care is covered by Medicare or supplemental medical plans like Medigap. This is a misconception since Medicare only covers for skilled nursing homes, or homes with doctors or nurses and it only covers the expenses for 100 days per admission. To prevent financial crisis at an advanced age due to the cost of long term care, it is recommended that a person avail the services of a funded life-care community or sign up for long term care insurance from a private insurer. |