What You Should Know About Long-Term Care
Research shows that roughly one in seven adults aged 65 or older will need long-term care at some point in their later years. Meanwhile, tens of millions of Baby Boomers in the United States are growing older and living longer. It seems inevitable, then, that the future of long-term care will be undergoing significant changes.
The challenges of providing quality care to an ever-larger senior population are numerous. Policy changes, investments in the health care workforce, technological advancements, and more may all be necessary. To ensure you have a plan in place for your care, connect with an experienced elder law attorney sooner rather than later. Continue reading to understand why attorneys in this legal area are especially suited to assist you.
The challenges of providing quality care to an ever-larger senior population are numerous. Policy changes, investments in the health care workforce, technological advancements, and more may all be necessary. To ensure you have a plan in place for your care, connect with an experienced elder law attorney sooner rather than later. Continue reading to understand why attorneys in this legal area are especially suited to assist you.
Challenges Facing Long-Term Care
- Aging Population – The U.S. is experiencing a rapidly aging population, largely driven by the Baby Boomer generation reaching retirement age. Projections show that, by 2050, the number of Americans aged 65 or older will reach 82 million. This demographic shift is stepping up demand for long-term care services on an enormous scale.
- Increasing Demand – With a growing number of older adults, the need for more long-term care options is greater than ever. These options include nursing homes, assisted living facilities, and home health care services. The demand for quality care in these kinds of settings is putting pressure on an already stressed health care system.
- Strained Workforce – The existing shortage of health care workers, from caregivers to nurses and physicians, may get worse still. The increase in demand is already straining the existing workforce, potentially affecting the availability and quality of care.
- Cost – Most long-term care options are expensive, and most individuals struggle to afford the services they need. For many seniors, Medicaid serves as the primary payer for long-term care. However, Medicaid costs also place a significant financial burden on state budgets. Federal and state governments must explore alternate funding models to make program expenses more affordable.
- Shift to Home-Based Care – More and more older adults prefer to receive care in their homes rather than in an institutional setting. Home-based services require greater advancements in technology and telehealth to facilitate these kinds of care options.
- Community-Based Services – Beyond home-based care, other types of services for older adults are ripe for expansion. For example, transportation assistance, meal delivery, and social engagement programs remain key to aging in place safely.
- Caregiver Support – Family caregivers provide most long-term care in the U.S. today. Recognizing and supporting the needs of these caregivers is essential, including providing resources, respite care, and financial assistance.
Strategies to Help You Plan for Long-Term Care
You should understand the challenges of planning for long-term care and the shifting care environment. Evaluating costs and developing strategies to pay for long-term care before you actually need it is crucial. The earlier you develop a comprehensive long-term care plan, the better. These strategies may include:
- Private insurance coverage
- Government programs
- Personal savings
- Reverse mortgages
Protecting Assets
The costs of long-term care today are excessive for most families. For instance, as of late 2023, the average cost of a semi-private room in a nursing home totaled nearly $9,000 a month.
To protect against long-term care costs depleting your assets, there are various legal tools to help preserve your wealth. This may include creating trusts or transferring assets so that you can qualify for government assistance programs like Medicaid.
Medicaid is a federal and state program that covers long-term care for eligible individuals with limited financial resources. The application process is complex as you must meet the program's financial criteria to qualify for benefits. This typically requires structuring your finances in very specific ways to comply with eligibility requirements.
To protect against long-term care costs depleting your assets, there are various legal tools to help preserve your wealth. This may include creating trusts or transferring assets so that you can qualify for government assistance programs like Medicaid.
Medicaid is a federal and state program that covers long-term care for eligible individuals with limited financial resources. The application process is complex as you must meet the program's financial criteria to qualify for benefits. This typically requires structuring your finances in very specific ways to comply with eligibility requirements.
Executing Healthcare Powers of Attorney
Long-term care often involves planning ahead for important health care decisions, too. Creating a healthcare power of attorney is part of this. With it, you can outline your specific health care preferences and empower someone you trust to make medical decisions on your behalf if you become unable to communicate your wishes.
Securing Guardianship
When an individual can no longer make decisions for him or herself - and has not engaged in a comprehensive estate planning, a guardianship or conservatorship proceeding will likely be required to appoint a family member or a professional to make financial, medical, and personal decisions for the individual who has lost capacity. (Learn more about claiming guardianship of an aging parent.)
Finding Veterans Benefits
If you or your loved one is a military veteran, there are available programs designed to assist with long-term care needs for those who served. Potential options might include Aid and Attendance and other benefits.
Navigating Nursing Home Contracts and Disputes
If you are considering entering a nursing home or assisted living facility, you will have to review and sign contracts and you should know your rights and obligations during your stay in the facility.
Paying for Long-Term Care
Pre-Crisis Planning (You are unlikely to need help for another five years).
If you have not invested in a long-term care insurance policy, and you are concerned about paying for your long-term care then you will want to consider whether a Medicaid Asset Protection Trust would be right for you.