The incredible cost of Elderly Care
Working with caregivers and seniors we are often amazed at the incredible cost of care for our elderly loved ones. With this in mind, we are sharing with you the annual “Cost of Care” report from Genworth Financial which tracks the staggering rise in expenses for long-term care, which is a growing financial burden for families, governments and insurers. Did you know that the cost of staying in a nursing home has increased 4 percent every year over the last five years and last year, the median bill was $87,600.
This is part of a continuing series of articles and helpful tips and insights to help you Nick Santoro and Joe Santoro of Personal Property Managers (www.personalpropertymanagers.com ) Personal Property Managers specializes in real estate sales and marketing, home downsizing, content clean out and removal and estate sales, and services Pennsylvania and New Jersey.
The steep cost of caring for the elderly continues to climb. The median bill for a private room in a nursing home is now $91,250 a year, according to the most recent industry survey.
Most people don’t realize how expensive this care can be until a parent or family member needs it, and then it’s a real shock.
The annual report from Genworth, which sells long term care policies, looks at costs for a variety of services, including adult daycare, and home health aides. And nursing home bills are rising at the fastest pace, twice the rate of U.S. inflation over the last five years. One year in a nursing home now costs nearly as much as three years of tuition at a private college.
For its report, Genworth surveyed 15,000 nursing homes, assisted living facilities and other providers across the country in January and February. It found wide differences from state to state. In Oklahoma, for instance, the median cost for a year in a nursing home came out to $60,225. In Connecticut, it was $158,775. Alaska had the highest costs by far, with one year at $281,415.
So, who pays the nursing-home bill? A lot of people believe Medicare will step in and cover them, but that’s just not true. Medicare will cover some short visits for recovery after a surgery, typically up to 30 days, for instance, but not long-term stays.
Often enough, experts say senior citizens wind up spending their savings until they hit their last $2,000, and at that point they can turn to Medicaid, the government’s health insurance for the poor, to help cover the bill. As a result, Medicaid pays for more than half of the country’s long-term care bill. That cost accounts for more than a quarter of Medicaid spending, according to the Kaiser Family Foundation.
Insurers offer long-term care policies to help people shoulder the financial burden. But people have to be healthy enough to qualify for coverage. Those who take out policies find their insurance bill rises steadily as they age. Mounting costs not only affect those who pay for policies they also affect insurance providers. Four of the five largest providers have either scaled back their business or stopped offering new policies.
Less-intensive care remains much cheaper than staying at a nursing home, according to Genworth’s survey. One year in in an assisted-living facility runs $43,200. A year of visits from an agency’s home health aides runs $45,760.
For more information on real estate or home downsizing please contact Nick Santoro or Joe Santoro of Personal Property Managers at http://www.personalpropertymanagers.com or simply give us a call at 215-485-9272 or 908-368-1909. Personal Property Managers specializes in helping to home owners transition from their home of many years into a new community. Personal Property Managers services Pennsylvania and New Jersey and offers downsizing services, estate sales services, home staging, discount full service real estate services via its association with Every Home Realty.