| Baby Boomers Need to Consider LTC Insurance | | | | sometime in their lifetime, with 50% staying an average |
| Long Term Care and LTC insurance is an important | | | | of 2.5 years. |
| issue for baby boomers, their parents and me. The | | | | 8. The national average cost for 1 year in a nursing |
| reality of long term care is at the forefront of our | | | | home is approximately $41,000; in larger cities from $50 |
| minds because of the news, TV or personal | | | | to $60,000 annually. |
| experience. We must ask ourselves what impact an | | | | 9. 50 percent of all couples and 70 percent of single |
| unexpected illness or accident would have on our | | | | persons are impoverished within one year of entering |
| finances. What is long-term care who needs it and | | | | a nursing home. |
| how much will it cost. Before we look at these | | | | 10. For every person receiving care in a nursing home, |
| questions let me share some fun facts about getting | | | | there are 4 people receiving care outside a facility. |
| "older". | | | | 11. The annual cost to companies for lost productivity |
| 1. Over 40% of all Americans over the age of 65 will | | | | from elder care responsibilities is $17 billion a year or |
| spend some time in a nursing home due to a | | | | $3,142 per employee. |
| prolonged illness or disability. | | | | 12. By 2020, 1 in 3 workers will be a care giver for a |
| 2. One year in a nursing home can cost $36,000 to | | | | family member. |
| $60,000. Currently, the average cost in a long term | | | | Most of us would never dream of not having home |
| care facility in America is $41,000 per year. The | | | | owners insurance, health insurance (that's another |
| average cost of a visit by a home health aide is $52. | | | | issue) or auto insurance. After looking at some of the |
| Daily visits would cost you almost $19,000 per year. | | | | facts and family medical history, the conclusion seems |
| Skilled nursing at home, to administer medication or | | | | clear that as baby boomers, we must give this a |
| oxygen, for example, five days per week for a year | | | | serious look. The challenge for us is too learn as much |
| would cost you an average of $94 per visit, or | | | | as we can about long term care so that we can have |
| $24,440 per year. | | | | options and not be caught off guard by an |
| 3. Health care plans and Medicare combined pay only | | | | unexpected illness that could wipe out our retirement |
| about 3% of the costs of long term care. State | | | | or add an undue burden on our families. |
| Medicaid programs rescue only those families who | | | | Sources: |
| descend to the poverty level. The rest comes out of | | | | Life Insurance Selling, December 1992 CBS News - |
| pocket - nest eggs, funds earmarked for retirement, | | | | Census Bureau New England Journal of Medicine, |
| life savings - or from a long term care insurance policy. | | | | February 1991 American Association of Homes for the |
| 4. In 1983, Medicare began a new program called the | | | | Aging, 1989, Leimberg, 1992 HIAA, "Long Term Care -- |
| Prospective Payment System. Instead of reimbursing | | | | Needs, Costs and Financing (1992) Leimberg's "Think |
| hospitals for the actual cost of treating patients, this | | | | About It" Stephan R. Leimberg, JD, CLU (November |
| program now pays a set fee according to 467 | | | | 1992) U.S. Administration on Aging, July 1991 USA |
| Diagnostic Related Groups, or DRGs. Once a patient | | | | Today, July 19, 1994 Wall Street Journal, July 19, 1995 |
| reaches the arbitrary number of days in the hospital, | | | | USA Today, July 19, 1994 Long Term Care Conclusion |
| Medicare payments stop regardless of the individual | | | | Terry Stanfield is a SEM consultant with over 15 years |
| patient's actual condition or the need for continuing | | | | of sales and marketing experience. His company, |
| care. | | | | Clickadvantage, manages PPC and SEO efforts for |
| 5. 70% of people who are older than 65 will need long | | | | his lead generation and ecommerce clients. For more |
| term care services. | | | | information go to today. Terry has written several |
| 6. 77 million Americans will turn 50 over the next 18 | | | | aticles about long term care insurance and "Baby |
| years. That's 1 person every 7.5 seconds. | | | | Boomers". For more information visit:Baby Boomers |
| 7. 43% of individuals age 65 will enter a nursing home | | | | and Long Term Care. |