Start Planning
Now for Long-Term Health Care
According to the most recent census data,
there are 35 million Americans 65 years of age or older. Ten years from now,
when the baby boomers (those born from 1946 through 1964) reach age 65, this
number will increase dramatically.
A total of 12.4 percent of the U.S. population is over age 65. In Wisconsin,
this number is 13.1 percent. In some rural areas, this figure is even higher.
For example, the number of Adams County residents age 65 and over is 20.9
percent.
The fastest growing segment of the over-65 population is the oldest. From 1990 –
1999, the percentage of Wisconsin residents age 85 and over increased 30
percent. In the same period, the percentage of Wisconsin residents age 65 and
over increased 7 percent.
As the older population increases, have you considered how your future long-term
health care needs will be met? You may not be able to rely solely on Medicare or
your current health policy.
Historically, children have cared for their aging parents. However, in today’s
society with many couples both having to work outside the home just to make ends
meet financially, this may no longer be a viable option.
Another interesting statistic from the recent census showed that 23 percent of
U.S. households include individuals age 65 and over. And, 27.2 million
households, or one quarter of America’s households, consisted of people living
alone. How will their long-term health care needs be met?
Make no mistake. Long-term health care is expensive. It is for those with
chronic or debilitating health problems that prevent an individual from caring
for him or herself. The average annual cost for a nursing home resident
increased 75 percent from 1990 – 1999, from $24,800 to $43,400.
While Medicare offers some help, it limits long-term care benefits. Medicaid,
the public health care program for low-income Americans, has very strict
financial eligibility requirements and usually forces people to deplete their
savings before they can qualify.
Consider the following questions when deciding whether you need long-term care
insurance:
- How would you and your family handle a
long-term illness or Alzheimer’s disease? One of the biggest risks for our
senior population is Alzheimer’s disease. An estimated one in 10 people over
the age of 65 will get Alzheimer’s.
- What would you do if someone in your immediate
family needed 24-hour nursing care?
- How would you pay for expenses related to
assisted living centers?
- Will your insurance be enough? How much will
Medicare pay for long-term health care?
At least 6.5 million people over the age of 65
need long-term care. More than 1.5 million people over the age of 65 live in
nursing homes. And, after the age of 85, one out of two people will need help
with daily routine activities.
Wisconsin has 424 nursing homes, which admitted more than 50,000 people in 2000.
The percentage of Wisconsin nursing home residents with Alzheimer’s disease
increased from 8 percent in 1990 to 11 percent in 1999.
Long-term care policies vary. Before you purchase long-term care insurance,
consider the following:
- Does the policy cover nursing home stays and
for how long?
- Does it include home health care or other
community-based services?
- Can you afford a long-term care policy?
Policies differ depending on your age when you purchase the policy, your
overall health condition, the type of benefits you select and the number of
years you want to collect benefits. In all likelihood, the policy premiums
will increase.
Remember, any insurance policy is only as good as
the company behind it, so be sure you purchase a policy from a reputable and
well-known company. Talk with your own insurance agent and friends and family
who have purchased such policies. Check with your state insurance regulatory
agency to see if the company has had any complaints filed against it.
Above all, research, research, research before you buy!
Provided as a public service by the Community
Bankers of Wisconsin (CBW). Daryll J. Lund, President & CEO.
