You may not be aware, but the number of people who are required to pay for their own long-term care when the time comes has been steadily increasing over the years. Ten years ago, a study was conducted and the result published showing that seniors, individuals with disabilities and the families of these individuals pay close to thirty percent of the cost of long-term care from their own pockets. This was at least a ten percent increase from the last study. Considering these shocking numbers, there should be no question as to how important Long Beach Medi-Cal planning should be for you and your family.
The financial burden of long-term care
Based on those numbers, which have certainly increased in more recent years, individuals and families have been required to spend more than $64 billion out-of-pocket to cover the costs of long-term care. Additionally, more than $350 billion in free health care is doled out by unpaid family members who care for loved ones in their homes. This is significantly more than the amount contributed to long-term care by private insurance companies – a little more than $16 billion.
So, how do families do it? In many cases, seniors and their loved ones are forced to rely on home equity income contributed by their adult children or, worse, their retirement savings. This results in diminished funding ability despite the growing population of long-term care recipients.
Why are private health and long-term care insurance contributions so little
You may be wondering why the contribution to long-term care costs for private insurance companies is so low. The primary reason is that the cost of long-term care coverage is much too expensive for most people to afford. In response, some states have established partnerships with private long-term care insurance carriers in an effort to make the premiums more affordable.
Another reason private long-term care coverage is minimal is that insurance carriers are more adept at either delaying or denying claims and benefits. As a result, their contributions are much less. Unfortunately, families often find it easier to purchase coverage from these private companies and fight for benefits when the time comes, rather than running the risk of exhausting all of their assets to cover the costs.
Even the Healthy Need Long Beach Medi-Cal Planning
It’s great to be healthy, especially as a senior, but simply because you are fit right now doesn’t mean you may not need long-term care when you get older. The worst mistake you could make is overlooking the need for Long Beach Medi-Cal planning. You may not have health issues right now, but who can predict how healthy you will be in 50 years?
Not to mention the possibility of unexpected illnesses or injuries that could leave you with medical issues that require long-term care. According to some reports, more than 2/3 of the population over age 65 will require some form of long-term health care at some point. Clearly, Long Beach Medi-Cal planning is a good idea for everyone.
You don’t have to be sick to need long-term care
A common misconception is that you have to be sick to need long-term care. That is not always the case because serious injuries can also result in the need for long-term care in order to fully recover. In some cases, people are admitted to nursing homes or assisted living centers because of the need for help with daily activities like dressing and grooming. This could simply be the result of aging. There are many ways that a person’s situation could change making the need for long-term care an unexpected reality.
Sadly, private health insurance is not always sufficient to cover the costs
Many people underestimate the potential costs of long-term care, which can be rather expensive, even overwhelming for some. In California, the average yearly cost of long-term care is more than $94,000. Many people believe they can afford those costs by simply relying on Medicare benefits and private health insurance. This is a mistake. The truth is, Medicare and private insurance rarely cover the cost of long-term care.
Download our FREE estate planning worksheet today! If you have questions regarding Medi-Cal planning, trust contests, or any other trust administration issues, please contact the Schomer Law Group either online or by calling us in Los Angeles at (310) 337-7696, and in Orange County at (562) 346-3209.
#estateplanning, #schomerlawgroup, #longbeachmedi-calplanning
- Things You May Need to Update in Your Estate Plan When You Enter Retirement - March 22, 2023
- 10 Estate Planning Tips You Cannot Afford to Ignore - March 21, 2023
- 7 Estate Planning Steps for the Beginner - March 16, 2023