Plan carefully to cover long-term care costs

| Aug 7, 2018 | Long Term Care Planning |

Recent statistics show healthy, retired couples over the age of 65 could pay $275,000 for healthcare during their retirement years. Residents of Texas and elsewhere can expect to pay an additional $97,000 a year for long-term care services in a private room in a nursing home. Studies show the cost of long-term care has increased three times faster than inflation since 2004.

The cost of long-term care spending since 1980 has gone from $30 billion to a staggering $225 billion in 2015. Most Americans over age 65 rely on Medicare to cover routine medical care and hospital procedures. However, Medicare does not cover long-term care. Medicaid will pay for a significant portion of expenses, but if a person has more than $2000 in assets, chances are he or she will not qualify.

Preparing for future healthcare expenses depends greatly on a person’s financial situation. In a survey completed by Cost of Care, respondents expected long-term care to be supported by government programs. This is rarely the case for most Americans. There are long-term care insurance policies that make good financial sense, but policies purchased later in life can be expensive and some policies contain limitations and exclusions.

Anticipating long-term medical care for one’s golden years can be a complex process and may require working with a professional to determine the best strategy. Residents in Texas who are planning for long-term care may consider speaking with an elder law attorney. A lawyer who has ample experience working with seniors can discuss all options available to help his or her client prepare for future expenses.