Howard Gleckman, a senior fellow at the Urban Institute and author of “Caring for Our Parents,” recently discussed the importance of understanding and planning for long-term care in retirement. Gleckman explained that long-term care involves personal assistance needed for daily living, such as balancing a checkbook, transportation, eating, or using the bathroom. Unlike conventional healthcare, which is medical, long-term care encompasses a range of nonmedical services.
Currently, around 14 million Americans need significant long-term care, many of whom are older adults living into their 80s and 90s. Advances in medical technology enable us to live longer, leading to age-related diseases such as dementia. Additionally, younger people with disabilities, like those with Down syndrome, are living longer and also require long-term care.
While only about 700,000 people live in nursing homes, which is roughly 5% of those needing long-term care, most care is provided at home by family members or paid aides. There are also congregate settings like assisted living, memory care units, and independent senior living communities, which offer non-nursing home care. Traditional Medicare does not cover long-term care.
Planning for elder care needs
Some programs like special needs plans or Medicare Advantage offer limited long-term care services, but the coverage is very minimal. Medicare Advantage plans might include food delivery or adult day programs, but it’s far from comprehensive.
About half of people over 65 will need long-term care at some point. Men typically need it for about two years, while women may need it for three years. Around 20% will require long-term care for five years or more.
The costs are substantial: nursing homes can exceed $100,000 annually, and assisted living can range from $5,000 to $10,000 per month. Long-term care insurance can be a prudent option for those who want to protect their assets from these costs. In summary, understanding and planning for long-term care is crucial as our population ages and medical technology extends our lives.
While traditional Medicare offers limited support, exploring other resources and insurance options can help ensure that we are prepared for the future.
April Isaacs is a news contributor for DevX.com She is long-term, self-proclaimed nerd. She loves all things tech and computers and still has her first Dreamcast system. It is lovingly named Joni, after Joni Mitchell.
