Long-Term Care in America
June 1st, 2018
Long-term care is a popular topic these days, as the American population continues to age; the need for long-term care in America is greater than ever before, and only will grow over the next few decades. The costs of long-term care are simply astronomical; these annual costs can average almost $18,000 for adult day care and more than $92,000 for a private nursing home room, an Associated Press-NORC Center for Public Affairs Research survey shows that most Americans aged 40 and over are not confident that they can pay for it. In fact, about one-third of these individuals have done no planning for their future long-term care needs, probably because about four in ten individuals don’t believe that they will need long-term care. These survey results directly contradict the research findings of the U.S. Administration on Aging, which indicate that almost 70% of individuals who are turning 65 will need help with activities of daily living as they age.
Currently, Medicaid is the largest payor of long-term care expenses for older Americans. However, eligibility for Medicaid requires strict limits on assets and income, which makes many people ineligible. Even worse, about four in ten individuals think they will rely on Medicare to pay their long-term care expenses in the future, which is problematic, since Medicare does NOT pay for any long-term care expenses. Therefore, if you don’t qualify for Medicaid, you either must rely on long-term care insurance policies, which are often very limited in scope and duration, or on using up your own resources and assets until you meet the eligibility requirements for Medicaid. These facts make it more important than ever that individuals make plans for long-term care issues well before it ever becomes a necessity.
Planning for your family’s future is a complex process that can involve many different options, including all available options for long-term care. By answering some of your questions and addressing your concerns, it is our hope that we can help you create the estate plan that is best for you and your family. At Legacy Law Center, we are here to advocate on behalf of all individuals and their families who need help planning for the future. Contact us today at (734) 995-2383, set up an appointment with one of our Michigan estate planning attorneys, and discover how we can help you and your family.