As the tsunami of Baby Boomers navigate retirement, the USA is entering a long-term care (LTC) crisis. In fact, it’s estimated that the cost of LTC services will increase by as much as 40% by the year 2030.
Part of the reason is the increase in wages for workers who provide non-medical assistance with day-to-day activities for the elderly. Another factor is the growing number of retirees reaching the age when they’ll need LTC in a facility or at home.
Yet, in spite of all the information available, too many pre-retirees are being led astray by the top three persistent myths.
Myth #1: You Probably Won’t Need Long-Term Care (LTC)
The statistics say otherwise. According to LongTermCare.gov, a person reaching their 65th birthday today has a near 70% chance of needing some type of long-term care services and support in the future. And though one-third of today’s 65-year-olds may never need LTC, 20% will need it for five years or longer.
If you think you won’t live long enough to need LTC, you’re wrong. At age 65, a man has a 66% chance of living until 80 while a woman has a 75% chance of hitting the big 8-0. And when you live to age 69, your chance of living until 80 increases a few points.
“However, when it comes to non-medical custodial care, FEHB and Medicare will not cover the costs.”
Myth #2: FEHB & Medicare Will Cover Long-Term Care (LTC)
Far too many federal workers believe their Federal Employees Health Benefits (FEHB) coverage or Medicare will cover the cost of LTC at home or in a facility. It’s not true.
This myth tends to persist because FEHB and Medicare will cover most of your medical needs in a facility such as medication and other treatments ordered by a physician. However, when it comes to non-medical custodial care, FEHB and Medicare will not cover the costs.
Myth #3: Long-Term Car (LTC) Insurance Only Covers Nursing Homes
According to the Kaiser Family Foundation, only 3% to 4% of Americans age 50 and older pay for a LTC insurance policy. Part of the reason is that many seniors mistakenly believe LTC insurance will not cover at-home care. And, since the majority of seniors want to age in place, that believe that paying for insurance that doesn’t cover in-home care isn’t worth the cost.
It’s not true. You can purchase a LTC insurance policy that specifically covers in-home services like assistance with bathing and dressing, meal preparation and even light housekeeping. Of course, the range of services vary depending on the policy terms.
For complete information about LTC insurance coverage, contact an FRC® trained advisor.
