When I suddenly had to become a full-time caregiver for my elderly parents, both with health problems and beginning to develop dementia (i.e. Alzheimer’s), I had never heard of long-term care insurance. After we spent their life savings and started spending mine, I was recommended to apply for financial assistance for them through the government’s Medicaid system, a program for those at the poverty level. It was quite a long process with lots of paperwork and extensive research, but eventually my parents were approved.
I was so happy that cash aid was finally on the way, until I found out that financial aid would only pay to put my parents in a nursing home, not even Assisted Living, and with very little help to support them in their own home. . home.
Since their levels of care were so different (my mother needed most things done to her), there was no facility that would allow them to be together. They would be across the street in different wings of the house. After fifty-five years of marriage, my parents insisted on wanting to be together in their own home, in their own bed, where they could continue hugging and kissing, as they did so often. And, since my father was so “difficult” with a terrible temper and a fairly long history of manipulative and disruptive behaviors, households didn’t want to deal with him anyway.
It was challenging, but I made a commitment to keeping my parents in their own home and attending adult day health care five days a week. Then, with the help of two wonderful caregivers, after four more years of loving each other, they passed away, only a few months apart. Although caring for every aspect of my parents’ last years was the hardest thing I have ever done, I am proud to say that I gave them the best end of life that I could.
If I had known to insist that we buy long-term care insurance for them before their illnesses, their years of home care could have been paid for and it could have saved me so many headaches, not to mention a small fortune. . I encourage you to learn from my mistake and seek LTC insurance long before you need it, both for your loved ones and for yourself. Like fire insurance, hopefully you will never have to use it.
Also, call your local Area Agency or Department of Aging and ask if there are financial programs, waivers, or grants available in your area that you can apply for.
AMAZING STATISTICS
· An estimated 4.5 to 5 million Americans have Alzheimer’s disease. In a Gallup poll, 1 in 10 Americans said they had a family member with Alzheimer’s and 1 in 3 knew someone with the disease.
Older age is the biggest risk factor for Alzheimer’s disease. One in 10 people over 65 and almost half over 85 are affected. Rare and inherited forms of Alzheimer’s disease can even affect people in their 30s and 40s.
A person with Alzheimer’s disease will live an average of eight years and up to 20 years or more from the first appearance of symptoms.
· More than 7 out of 10 people with Alzheimer’s disease live at home, where family and friends provide 80 percent of their care. The estimated value of this informal care is $ 257 billion annually.
Half of the US population has a chronic disease. More than a quarter (26.6%) of the adult population provides care to a family member or friend with a chronic illness, disability or advanced age, which translates into more than 50 million people.
37% of caregivers live in the same household as the person they care for. 54% are between 35 and 64 years old. 59% of the adult population is or expects to be a family caregiver, and 2 million more caregivers will be needed in the next twenty years.
· It is estimated that 43% of Americans 65 and older will spend time in a nursing home. By 2012, 75% of Americans 65 and older will need long-term care. Long-term care costs are increasing by 6% per year.
The annual cost of Alzheimer’s disease care in the US is at least $ 100 billion and will rise to at least $ 375 billion by mid-century, overwhelming our health care system and ruining Medicare. and Medicaid.
Alzheimer’s disease costs US businesses $ 61 billion a year, equal to the net profits of the top 10 Fortune 500 companies. $ 24.6 billion covers Alzheimer’s health care and $ 36.5 billion millions cover costs related to caregivers of people with Alzheimer’s, including lost productivity, absenteeism and replacement of workers.
THREE WAYS TO PAY FOR LONG-TERM CARE
1. Pay out-of-pocket for in-home caregivers and nursing homes or assisted living. This is expensive and can often drain a family’s lifetime savings.
2. Meet a very specific poverty level and qualify for government assistance through the Medicaid program. Unfortunately, the options are limited and only pay for nursing homes that accept Medicaid.
3. Buy a comprehensive long-term care insurance policy. This protects your family’s assets from the rising costs of caring for someone who needs full-time care. An employer could pay tax deductible premiums. Consider buying it at an earlier age, when it is more affordable and accessible. It must be purchased before serious illness occurs. Medicare and regular health insurance don’t cover long-term care. The average cost for a person who needs long-term care is $ 40 to $ 70,000 a year, depending on where you live, plus the cost to the family caregiver who may have to leave their job.
QUESTIONS TO ASK YOUR INSURANCE AGENT
– Is coverage comprehensive, meaning it includes all levels of care: home, assisted living, food and care, and nursing / dementia facilities?
– What is the daily profit?
– Is there a 5% compound annual inflation protection?
– What is the elimination period?
– Is it a lifetime benefit period or a limited time benefit policy?
– Is there a spousal discount?
– Can you hire caregivers privately or from an agency?
– Is the home care benefit based on a daily, weekly or monthly maximum and, if the benefit is not used, can it be used in the future?
– Does it cover the coordination of home care services?
– How many ADLs (Activities of Daily Living) does it take to trigger a claim?
– Is there a time limit to file a claim?
– Does it cover the cost of adult day care and adult day care, hospice and respite programs?
– Is it a tax-qualified plan?
– Is the company highly rated and has it ever increased premiums?
– Can you view the company’s published annual audit to check its claims payment history?
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