It isn't news that needing long-term care services can be brutal on your finances but a new study shows just how it can destroy your assets. Median household wealth for those who spend fewer than 30 days in a nursing home is about $108,000. But after 6 months, many nursing home residents are effectively broke, with median assets of barely $5,000. In other words, after [...]
This morning, I was on Diane Rehm's NPR radio show talking about long-term care insurance. The other guests--former Social Security Administrator Ken Apfel, Families USA executive director Ron Pollack, and Kiplinger's Personal Financec olumnist Kim Lankford--and I agreed on one thing: Private LTC insurance is an appropriate tool for some consumers, but it is not a realistic alternative for many others. The challenge is [...]
Senator Bob Corker (R-Tenn) warned today that long-term care financing is "a major train wreck" and "heading for a national crisis." Corker, the senior Republican on the Senate Aging Committee, said he was very worried about the viability of private long-term care insurance and added , "there is no doubt there is a public sector role" in the future of financing [...]
Why not make insurance for long-term care services and supports part of health care coverage? It is a radical idea that turns the current model—which often treats long-term care insurance as an element of retirement planning—entirely on its head. The concept isn’t new. John Rother, who ran public policy for AARP for many years, talked about integrating long-term services and [...]
Since last year's demise of the CLASS Act, those of us worried about how the U.S. will finance the long-term care needs of the frail elderly and younger adults with disabilities have been looking for an opportunity to reopen the issue. Today, in a small first step in that direction, about two dozen state and federal officials, advocates, insurance company executives, and researchers met [...]
Private long-term care insurance can be an important tool to protect against the risk of needing costly personal assistance in old age. But two respected financial economists conclude it is very expensive relative to the benefits it provides and may not be appropriate for many buyers. At the same time, a new consumer brief from the Society of Actuaries suggests how much wealth you should have for coverage to make sense. The research paper from economists [...]
This week’s failure of the deficit super committee may have saved Medicare and Medicaid from spending reductions for now, but don’t kid yourself: These programs remain squarely in the fiscal bulls-eye. As part of last August’s deal to extend the federal debt limit, Congress agreed that if the super committee was unable to reduce the deficit by $1.2 trillion over [...]
In the wake of the White House decision to abandon the CLASS Act, policy analysts are struggling to find some workable solution to the growing problem of how to finance long-term care costs. So how about using Social Security? One versionof this idea was proposed years ago by Yung-Ping Chen, now professor emeritus of gerontology at the University of Massachusetts. He'd let Social Security recipients trade off a small portion [...]
It may be possible to design a modest government-run voluntary long-term care insurance program that is financially viable. It isn't easy, would probably enroll only about 2 million people, and would take some substantial revisions to the program as imagined by the Community Living Assistance Services & Supports (CLASS)Act. But it might be possible. That at least is the message buried in the reams of documents released [...]
After spending 19 months trying to figure out how to make the Community Living Assistance Services and Supports (CLASS) Act work, the Obama Administration has abandoned the landmark national long-term care insurance program that was included in the 2010 health reform law. But it was easier for the Administration and vocal GOP critics of the program to kill CLASS than [...]