The Census Bureau reports that at any given time, approximately 4 percent of the country's population that is 65 years and older live in nursing homes. The same data indicates that nearly 50 percent of people age 95 or older are in nursing homes. This brings up the question of funding, along with whether long term care insurance should be part of a District of Columbia resident's elder care planning.
Research indicates that a semi-private room in a nursing home costs an average of $80,000 per year on average. In many areas, that cost can be much higher. The reality is that Medicaid will most likely not cover the entire cost. Therefore, District of Columbia residents will need to look to other sources to fill in the gaps.
Both the cost of nursing home care and long term care insurance are rising each year. This means the sooner that an individual addresses whether to purchase a policy, the better since premiums are based on one's age at the time of purchase. Of course, this is not the only alternative available to pay for long term care.
Elder care planning is increasingly becoming an integral part of estate planning. This is largely due to the fact that the average age of the country's population is increasing steadily, so more people are taking this eventuality into consideration. Each person's circumstances are unique, and planning can take several forms. Therefore, it is important to seek advice and assistance with creating a plan that will give the individual and the whole family peace of mind.
Source: CBS Boston, "The Basics Of Long Term Care Insurance", Dee Lee, June 25, 2015