The Spiraling Costs of Long-Term Care

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Few, if any, expenses in life are rising faster than those associated with health care. And within the realm of health care, long-term care (LTC) costs seem to be rising even faster. Why is this so, and is there hope for reining in costs in the future?

Why is this happening?

Our population is rapidly aging—the average age and life expectancy today have increased dramatically over those of just 20 or 30 years ago. As we age, the cost of medical and custodial care rises because the scope and sophistication of that care increases. In addition, the amount and duration of custodial care we need rises even faster. It has been said that during the last 20 years of our lives we burn 80% of our lifetime medical expenditures, and current statistics prove this true.

Conditions that used to kill us now disable or at least hamper us and require more medical attention. Once the medical bills are paid, we often still need custodial care—getting up, getting around, getting dressed, bathing, eating, and so forth. If you have a stroke, you probably won’t die, but in the past you probably would have. Once the initial treatment is finished, you should require minimal skilled care, but you probably will need much therapy, rehab, and unskilled or semi-skilled care just to get through the day.

We cannot change demographics, and probably would not want to, so LTC costs have nowhere to go but up. Also, the salary expectations of LTC workers are rising much faster than inflation too. Being a home health aide or nursing home aide is no longer a part-time job—it is a career choice and is being compensated accordingly.

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The Future of LTC Costs

Is there any way to manage soaring LTC costs? Maybe. One way is to deliver custodial care in the most cost-effective environment possible. That means getting people out of nursing homes (one of the few venues covered by Medicaid) and into home health care or assisted living facilities; sending an elderly person to an adult day care center so you can continue working and caring for him/her; and taking care of yourself during your active years so your LTC needs are reduced or postponed.

Another way to help manage the burden of future LTC expenses is to buy LTC insurance. Obtaining comprehensive LTC insurance places your out-of-pocket costs (or the costs for whomever is insured under the LTC policy) into a manageable range because you know the money will be there when needed.

LTC insurance is one of the best solutions for cost containment in the LTC realm. If you are not a qualified candidate for Medicaid (and most people are not), a comprehensive LTC insurance plan might be the way to go. Please give us a call so we can help you explore your best options.

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