LTC By-The-Numbers

Along with improved healthcare and the expectation of a longer life comes the need to think ahead and plan for long-term
care. A recent article in The Wall Street Journal* lays out the facts squarely:

• At least half of people over 85 will requirehelp with activities of daily living.
• The costs of long-term care are huge and growing faster than overall inflation. Nursing homes averaged $75,000 a year in 2006; assisted-living facilities, $35,600; in-home care, $19 an hour.
• Medicare covers very little long-term care needs. Medicaid provides some long-term care assistance but only after an individual meets certain criteria for being impoverished.
• Long-term care insurance, generally speaking, is easiest to obtain when you're younger and in good health. While waiting to buy coverage, you may risk ailments arising that reduce your chance of obtaining coverage later.

Furthermore, for those living in California, the numbers are even more alarming. Based on statistics from the AARP Public Policy Institute, in twenty years, with an estimated six percent rate of inflation, the daily cost for a nursing home in San Francisco could range from $609 to $1,443. Clearly numbers like these make long-term care insurance a critical element in every retirement plan.

To learn more about LTC4CPAS, CalCPA's members-only long-term care program, contact a CalCPA long-term care specialist toll-free at (866) 799-9775.

*The Wall Street Journal, February 25, 2007, Thinking About Long-Term Care… Now, by Jeff Opdyke