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Many not able to pay for long-term care, study finds
MIAMI - DECEMBER 14: United HomeCare Services home health aide Wendys Cerrato carries bedding to the washing machine as she helps Robert Granville in his home on December 14, 2009 in Miami, Florida. The U.S. Senate continues to debate the need for the Community Living Assistance Services and Supports (CLASS) Act in the health care reform bill, which would provide a government-sponsored basic cash benefit to those needing long-term care services at home, in assisted living, or in a nursing facility. Without the help of United HomeCare Services Robert would be unable to continue to live on his own since he has limited mobility. (Photo by Joe Raedle/Getty Images) *** Local Caption *** Robert Granville;Wendys Cerrato
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Many not able to pay for long-term care, study finds
As the baby boomers continue to age over the next two decades, the need for long-term care services is expected to dramatically increase. But a new survey shows most Americans aren’t prepared financially to pay for it.
A recent poll by the the Associated Press-NORC Center for Public Affairs Research finds two out of three Americans 40 and older are not saving for long-term care, despite studies that show seven in 10 of those 65 and older will need it.
What’s more, the survey finds that about a quarter of Americans mistakenly believe that Medicare or standard private insurance will cover those needs.
In the U.S. today, Medicaid – the federal-state insurance program for low-income Americans - pays for about half of all long-term care. The median cost of nursing home care is more than $90,000 a year and at-home health care costs about $45,000. By contrast, the median income for those 65 and older is only about $19,600, the study says.
Despite those numbers, few are buying special insurance to cover long-term care. The health insurance industry estimates only 5 to 7 percent of people 45 and older have it.
The poll also finds a majority of those surveyed support policies that would help Americans finance long-term care, including tax breaks for buying long-term care insurance.
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