It’s hard enough to keep up with all the changes that come with this pandemic, isn’t it? Some changes just can’t be ignored, like the ones that affect your long-term care costs. And 70% of us will need it at some point!
Elder Law Guidance is sharing three changes to long-term care to help you navigate the hazardous Medicaid landscape:
Increasing cost. From 2004 to 2019 the cost of home care and facility care has risen from 1.71% to 3.64% annually. The change in the political power due to the presidential election from a Republican to a Democrat may not change much of the gridlock affecting long-term care costs since the Senate could still be held by the Republicans and the House is controlled by the Democrats. These numbers will continue to rise for each of us.
The current cost of care in Kentucky is $7,500 per month or $90,000 annual. The average length of care needed is more than 3 ½ years. That totals to a need of $315,000 per person.
That cost will likely grow to $9,800 per month over the next 10 years. This $230 annual increase creeps up on us like a frog in a kettle of boiling water. Coupled with the decreasing options for long-term care insurance (its increasing cost and strict qualification standards), the problem escalates.
Reduced Availability and Cutting Cost in Care Provided. The cost of care at private facilities that do not accept Medicaid is increasing at a higher rate. And the financial health of nursing facilities is very fragile. Most do not even operate at a profit. Higher rates, cost-cutting at these facilities and a growing need for our care is a trifecta of a perfect storm.
Less Tax Breaks. The IRS just released the new 2020 premium deductions. The medical deduction for long-term insurance premiums is now capped at $5,640 for 2020. However, the premiums for a married couple in their seventies is greater than the deduction. In other words, no matter what you do, you are losing money, and everything is against us when planning for long-term care. Most couples in their seventies will not have $5,600 of extra annual income to afford this type of insurance anyway.
So, is there any good news? Yes! You don’t have to navigate the rocky terrain of Medicaid alone. It is never too late to plan, and you never have too much money to qualify for assistance for long-term healthcare. Call the experienced team at Elder Law Guidance at (859) 544-6012 for your free consultation and let us start working for your future today.