Unexpected Home Care Costs Create Unintended Impact

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.