This article was written exclusively for our Wellington Estates readers, by our good friend, Hazel Bridges of www.agingwellness.org
Medicare is an invaluable resource for seniors in the United States. Among some of the rapidly-rising expenses retirees have to deal with are the costs of healthcare. In fact, recent estimates show that retirement health care costs are rising twice as fast as Social Security. Regular Medicare (Parts A and B) helps seniors pay for many of these expenses, including preventative services and hospital care. Seniors can also opt for more extensive Medicare Advantage or supplemental Medigap plans through private insurance companies that combine the coverage of traditional Medicare with additional benefits, such as vision and dental.
However, Medicare does not cover everything— specifically, many of the costs associated with long-term assisted living or making repairs for aging in place. Whenever a senior is ill or injured to the point where they can no longer care for themselves alone, they are in need of some type of assisted-living situation. While the majority of seniors end up needing care of this kind, most only need it for no more than a couple years.
However, even a couple of years can be costly. The nationwide average monthly cost of assisted living is approximately $3,600, with costs varying depending on which state you live in. In 2017, the average amount being paid for a shared room is $227 per day– approximately $6,810 a month. The national average for in-home care is about $72 a day, totaling an approximate $2,160 a month. When paying for these services, about one out of five older people will incur more than $25,000 in out-of-pocket costs for long-term care before they die. To avoid becoming that statistic, it’s important to assess the likelihood of needing assisted living or long-term care while coming up with a plan for covering what Medicare cannot.
Will You Need Long-Term Care?
The average senior has about a 50/50 chance of needing some type of long-term care. However, those who need long-term care typically only do so for two years or less. Long-term care doesn’t necessarily mean being admitted into a nursing home, either. In fact, a nursing home should probably be a last resort, as it is the most costly type of long-term care, and in-home care is more desirable in comparison. And while you can’t change that 50-percent chance, you can do things to better your odds of simply needing some in-home assistance rather than being admitted into a facility.
First of all, taking care of your health should be a top priority. Take advantage of all preventative care measures provided by your insurance and Medicare, including getting your annual checkup. Consume a diet full of foods for longevity, such as cruciferous vegetables, nuts, berries, beans, garlic, onions, and tomatoes. Work out regularly with a combination of cardio and muscle-building resistance exercises that also promote flexibility and balance. Furthermore, make an effort to stay mentally and socially engaged as a way to protect both mental and physical health.
Beyond a healthy lifestyle, you can also make it easier to age in place by making your home more accessible to the needs of an aging senior. Certain upgrades make it easier to stay in a house longer, no matter what health concerns pop up. Look into renovations such as widening doorways, installing grab bars in the bathroom, adding more lighting, removing loose carpeting or rugs, and installing dual-sided railings on stairs.
Paying for Long-Term Care
Having options that will pay for your long-term care takes the burden off your family. If you don’t have the cash available to pay out-of-pocket costs forthright, there are long-term care insurance plans that you can invest in today that will cover expenses in the future. However, this type of insurance can be very expensive and may not even be needed in the long run. Fortunately, there are alternative ways to fund your long-term care needs:
- Sell a life insurance policy
- Activate a chronic illness rider on your life insurance policy
- Contribute to a health savings account (HSA)
- Use veterans benefits
- Combine life insurance with long-term care benefits
- Tap into personal savings
- Withdraw from an individual retirement account (IRA)
- Use your Social Security or pension funds
- Sell your home
- Get a reverse mortgage
- Look into religious affiliated foundations that help members
*****
Half of seniors will need some type of long-term care, the costs of which Medicare will not cover. The best thing you can do is reduce your chances of needing more costly nursing home care and make choices that facilitate longevity and aging in place. To pay for long-term care, weigh the pros and cons of insurance versus other methods of paying, and you can ensure the burden of that expense doesn’t fall on your family’s shoulders.