A new study asserts that if seniors have to pay a higher portion of their medical costs, it could lead to their financial ruin, especially if they have dementia.
To identify how much Medicare beneficiaries spend on healthcare costs in the last five years of life, a National Institute of Aging study analyzed data over six years from 3,209 individuals with Medicare coverage. They found that out-of-pocket spending for individuals or their spouses dying of dementia was more than twice the average when compared to spending on those dying of gastrointestinal disease or cancer.
The bulk of these costs were related to nursing home expenses, which accounted for 56% of average spending in those suffering from Alzheimer's disease. Which is interesting since Medicare only pays in certain instances.
In my consumer blog I talk about "Educated Aging". I suggest that readers plan now for a quality of life as you age.
You know the scenario. People have to become destitute to receive your care. So they do their best to estate plan. Some don't plan. Others plan perhaps shadily. And in our guts we know that even having long term care insurance may not be enough. People want to protect your assets.
We will all be in the same boat. Ask nursing home administrators how many will want to be in a nursing home in their life. Most will say no way.
So we can go a couple of ways here. Long-term providers can help caregivers, boomers and seniors plan for their aging and in creating that good will and hopefully solid financial plan, people will remember you for it. That is not to say become financial planners. There are enough of them out there that you can sponsor.
Residential care will decrease. People want to age in place and community. And forces are working to make that happen. For elders it is the most cost effective way to age and still have a quality of life. So perhaps providers really need to think about their future vision and what they need to become to support the desire to age in place.
Unless, as one senior living provider confided to me, you can create an experience that is so meaningful that people can't help but consider it, the residential sector, in all its manifestations will dwindle.
Just consider how you want to age and start letting that guide your decisions.
Learn more ~ or join the conversation!
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .