Paying for long-term healthcare is often a challenge for area residents. This is true now more than ever as the nation continues to experience economic struggles and community members are forced to find ways to use their dwindling nest egg to cover their needs. For many residents, taking the time to conduct New York long-term care planning is the difference between staying in one’s own home, living in a private nursing home room, or being forced into a substandard facility.
Even though many families have fewer resources now than in the past, the cost of long-term care continues to rise. Genworth recently published the results of the most comprehensive cost of long-term care survey ever. The research involved over 15,500 homes from across the country with data provided by more than 53,000 care providers in more than 384 U.S. Metropolitan Statistical Areas.
The latest figures indicate that facility-based services are more expensive than ever, showing a roughly 4.35 percent compound growth rate over the last six years. As has historically been the case, New York remains one of the five most expensive areas in the country when it comes to long-term care. An average private room at a nursing home costs residents in our area about $120,000 a year. This figure is nearly $43,000 more per year than the national average. That means that the average daily rate for these facilities is about $330, with some facilities charging nearly $675 per day to care for seniors. These figures do not represent the most extravagant or luxurious accommodations but basic rooms and services. Nicer accommodations and more advanced medical assistance often increases that total significantly. In fact, these costs usually increase if a senior develops a disabling disease later in life, such as Alzheimer’s. Unfortunately, fears of developing Alzheimer’s are not unfounded as nearly one in eight Americans age 65+ and half of those aged 85+ have the disease. Considering that many seniors may require five, ten, or more years in these facilities, the total cost of long-term care can be staggering.
With costs of this nature, it is imperative that local residents act early to makeNew York long-term care preparations. Contrary to some misperceptions, Medicare generally does not provide federal assistance for long-term care. Medicaid may pay for necessary care, but it first requires an individual to use most of their own assets before qualifying. The use of a Medicaid Asset Protection Trust can help a senior to protect their assets for their children and qualify for Medicaid benefits without the requirement to “spend down” one’s assets. Long-term care insurance is usually a superior method of preparing for these costs.
To learn more about New York long-term care costs, be sure to check out the entire 2011 Genworth Cost of Care Survey.
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