Unexpected Home Care Costs Create Unintended Impact

With aging comes declining health issues which require us to need long-term care services and supports. Costs of professional care is exploding nationwide. The impact on your family is tremendous. Most people prefer to be at home; LTC insurance pays for quality care in any setting.

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Unexpected Home Care Costs Create Unintended Impact
2 Min Read January 7th, 2018 Updated:July 11th, 2022

The National Opinion Research Center has indicated that 77% of aging Americans prefer to remain at home, even if they require some support and assistance. There are plenty of reasons, not the least of which are concerns many of these men and women have about nursing home care and other services. 

Unfortunately, with the cost of long-term health care increasing, especially as it relates to an increase in demand and reduced federal support, many of these same Americans don’t believe it’s possible to pay for extended care and remain home or dramatically underestimate what it will cost them out of pocket.

Now that inflation and rising labor costs are making the cost of long-term health care even more expensive, the impact on families and finances is even more devastating. 

Some may turn to family and friends for help, but the best option will be home care agencies with experienced and dedicated caregivers providing services for them. If most of these individuals don’t know about home care support, how can they learn that this is the best option?

Donald Jay Korn wrote in his Financial Planning blog, “When Home-Care Costs Go Through the Roof,” wrote:

Step one entails recognizing the costs of home care and adjusting financial plans accordingly. “I’ve been surprised at how expensive long-term care can be,” says [Jennifer] Cray [partner at Investor’s Capital Management]. Sources such as the Genworth Cost of Care survey cite median costs by area, but that’s just the median. In reality, costs can be vastly higher, even for the basics, she says.

Cray reports that her firm is changing its modeling for the potential costs of long-term health care. 

“We’ll probably add about 20% to the already high numbers we’ve been using,” she says. “Finding that extra money won’t be easy. We may suggest saving more and holding more cash. When someone needs care, and is living in a house they’ll need to keep in good repair, the cash needs can be enormous.”

Based on current numbers, home care is the most affordable option, but that could change as demand increases. However, it will not likely come anywhere close to nursing home care or the cost of other types of long-term care options. As more seniors begin dealing with increased physical and mobility-related issues, home care support could be the only way they can remain home, where they are most comfortable.

What is the responsibility of agencies within the home care sector? Perhaps working with financial advisors to help relay this information and provide an opportunity for men and women in their 40s, 50s, and 60s properly plan for the potential requirements of home care services.

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About the Author

Registered Nurse, Author, and Co-Owner of LTC Expert Publications.

LTC News Contributor Valerie VanBooven

Valerie VanBooven

Contributor since January 8th, 2018

Editor's Note

There is no question that most people when they need long-term health care, will prefer to be in their own home. Many people don't know that Long-Term Care Insurance will pay for quality care at home. LTC policies will pay for adult day care, assisted living, memory care, nursing homes, and care at home.

Health insurance, including Medicare and supplements, will only pay a limited amount for skilled services. Most long-term health care is help with daily living activities or supervision due to memory loss. This care, called 'custodial care,' is not covered by traditional health insurance, including Medicare. 

Medicaid will pay for all types of long-term care services but only if you have limited income and assets. The solution is Long-Term Care Insurance.

Since the risk of needing long-term care is significant, planning for the costs and burdens of aging should be done before retirement. The ability to get a plan is based on your health. You can't wait until you need the care to start shopping for a policy.

Since your health can change anytime, and many people require care before they are elderly, the key is to make planning part of your overall retirement plan before you retire.

Often people think Long-Term Care Insurance is expensive. Premiums are based on your age and health at the time of application, as well as the amount of benefits you wish to have within your policy. These plans are affordable, but you should seek the advice of a Long-Term Care Insurance Specialist who represents the major companies. 

Read more about the cost of Long-Term Care Insurance - How Much Does Long-Term Care Insurance Cost? | LTC News.

Many insurance agents and financial advisors don't understand policy design and underwriting. As a result, the cost is substantially more than it should be had an experienced LTC Specialist provided the help.

Safeguard your retirement savings (401(k) IRA SEP 403(b)) and make it getting older easier on your family. Caregiving is hard. Professional care is costly. Long-Term Care Insurance is Easy and Affordable Asset Protection.

Have Questions About Long-Term Care Planning?

You might have questions about long-term health care planning, and LTC NEWS provides the answers for many of the most asked questions here - Frequently Asked Questions | LTC News. Find all the resources available on LTC NEWS - Resources for Long-Term Care Planning | LTC News.

Find the cost of care where you live by using the LTC NEWS Cost of Care Calculator - Cost of Care Calculator - Choose Your State | LTC News.

Loved Ones Need Help Now?

Get help finding quality caregivers or long-term care facilities and get recommendations for a proper care plan, whether a person has a policy. - Filing a Long-Term Care Insurance Claim | LTC News

If your loved one is lucky enough to own a Long-Term Care Insurance policy, be sure they use it. Sometimes families wait, thinking they can save the benefits for a rainy day. Waiting on using available Long-Term Care Insurance benefits is not a wise idea. 

If your parent or parents need help be sure to get them quality care. LTC NEWS can help. We have put together several comprehensive guides to help you in your process.

Start by reading our four guides -  

Advantages of Reverse Mortgages 

Today's reverse mortgages for those aged 62 and older could be an ideal resource to fund a Long-Term Care Insurance policy OR even provide money to pay for care if you, or a loved one, already needs help and assistance. You might be eligible at younger ages as well. 

Some people have much of their savings invested in their homes. With today's reverse mortgages, you can find ways to fund care solutions, care itself, and even help with cash flow during your retirement. 

Learn more by asking questions to an expert. Mike Banner, LTC NEWS columnist and host of the TV Show "62 Who Knew" will answer your questions regarding caregiving, aging, health, retirement planning, long-term care, and reverse mortgages. 

- Just "Ask Mike." - Reverse Mortgages | LTC News.

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