Ask the Expert: What are the Costs of Aging in America?

Published: Fri, 11/22/13



Ask the Expert: Your Elder Law and Estate Planning Questions Answered by Evan H. Farr, CELA

Ask the Expert: What are the Costs of Aging in America?

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Q. My 65^th birthday is just around the corner. I retired from a job that I loved last summer and I think that I am ready for what lies ahead. The problem is, I am not sure if I can afford it -- future long-term care costs in particular are making me very nervous, because I tried to get long-term care insurance but I was denied because of a pre-existing medical condition! I have several friends who also tried to get long-term care insurance but it wound up being way too expensive for them to afford. Are there options for people like us to consider in place of long-term care insurance?

A. Living longer does not come cheaply. During retirement our income typically drops dramatically, but our expenses do not. This is especially true when it comes to long-term care.

Many retirees drastically underestimate long-term care costs and therefore don't incorporate it into their overall retirement plan. According to a recent article in CNN Money, the median cost of living in private nursing homes and assisted living facilities has ballooned by 24% and 23%, respectively, over the last five years. Below are some of the items you should take into consideration when estimating the cost of long-term care, and some figures that are based on current research:

The Federal government reports that 70% of people who reach the age of 65 will require long term care services at some point in their lives. Of those, 20% will need care for between two and five years, while another 20% will need care longer than five years.
The median annual cost of private nursing home care in the United States is now $83,950. In Northern Virginia, nursing homes cost between $9,000-$12,000 a month or $108,000-144,000 a year (a few thousand less in Fredericksburg). An average stay in a nursing home will often impoverish a family.
Semi-private room costs in nursing homes have risen to an average of $75,405 per year in the U.S., and even a stay at an assisted living facility -- where patients do not receive anywhere near the level of care that they would at a private nursing home -- now tends to cost over $41,000 per year.
Less costly alternatives include hiring home health care aides and other live-in assistance. The median price for those services have only risen at about one percent per year over the last half decade to about $44,000 annually.
Medicare and other forms of health insurance don't cover long-term care in a nursing home. Medicaid will cover this type of long-term care, but to qualify for Medicaid, you'll need to work with an experienced Elder Law Firm, such as the Farr Law Firm, to protect your hard-earned assets. This is because our American health care system essentially discriminates against people who get the "wrong type" of illness or injury - an illness such as dementia or an injury such as a stroke - which results in the need for care that doctors can't help.
As demand for long-term care services is increasing, the cost of home health aides, adult day care, and nursing homes is also rising. These increasing expenses aren't likely to slow as Americans live longer and have more health problems later in life, experts say.

For more details on the costs of healthcare, please see the 2013 Genworth Cost of Care Study. In addition, for details on the costs of housing, transportation, insurance etc., please see the Expenditure of the Aged Chartbook, released earlier this year.

These numbers aren't meant to scare people but to educate people on the reality so they can take the necessary steps to plan for them while they still can. To answer your question, there are options for paying for long-term care besides long-term care insurance. The two primary methods to pay for long-term care (besides paying out of your own pocket and winding up broke) are Medicaid (available to anyone who can qualify) and Veterans Aid and Attendance (available to qualified wartime veterans). But to get these benefits you need to first protect your assets so that your assets won't count against you when trying to get these benefits. The best way to protect your assets, while you're still healthy, is through the Living Trust Plus^(TM) Asset Protection Trust, which allows you to protect your assets from the expenses of probate, PLUS lawsuits, PLUS nursing home expenses. Read more about the Living Trust Plus^(TM) Asset Protection Trust at our firm's website or at http://www.livingtrustplus.com, or order my best-selling book about this trust at Amazon.com.

When it comes to planning for long-term care, while many people acknowledge that they will need it, few have put a plan in place. If you have not planned for long term care in advance, it is wise to do so to ensure that you and your husband will always receive the care you need without worry or financial struggle. Learn more at our Long-Term Care Asset Protection Law Firm of Evan H. Farr, P.C. website, or call us at our Virginia Elder Law Fairfax office at 703-691-1888 or at our Virginia Elder Law Fredericksburg office at 540-479-1435 to make an appointment for a no-cost consultation.

Critter Corner- Traveling with Someone who has Alzheimer's

Dear Big Red,

I am a caregiver for my mother, who is in the early stages of Alzheimer's. My sister invited us to Thanksgiving dinner at her house. She lives three hours away, and has a small home, so we will need to stay in a hotel. Do you have any tips for traveling and staying in a hotel (or any unfamiliar place) with someone who has Alzheimer's?

Thanks,

Mary Ott
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Dear Mary,

You can still enjoy traveling with someone who is in the early stages of Alzheimer's disease; it simply requires planning well in advance.
Safety should be the number one consideration in traveling with a person with Alzheimer's. Wandering and becoming anxious may be more likely because you're leaving the familiar routine and environment. Below are some tips for your trip:

Call your local Alzheimer's Association and register with their Safe Return Program or Wanderer's Program. The entire registration process should be completed before leaving for your vacation.
It is also important to remember to never leave your mother alone during the trip because she is more likely to wander in an unfamiliar environment. If a situation does present itself, have a crisis plan ready and don't be hesitant to seek assistance from local authorities or emergency services.
When preparing for bedtime during a hotel stay, secure the hotel room door.
During your trip, maintain a daily routine as much as possible. This will help lessen confusion.
Wake up at the same time each morning and go to bed at the same time each evening.
Keep regular meal times.
Have comfort items such as pillows, snacks and water readily available when you travel. This includes any kind of transportation -- including bus, train, car or plane.

Keep in mind that taking a break from your caregiving responsibilities can be vital for your own mental and physical health. In the end, it's a tremendous benefit to both caregiver and care recipient. I hope you enjoy your trip and have a happy Thanksgiving!

Do you have a loved one who is suffering from Alzheimer's? Persons with Alzheimer's and their families face special legal and financial needs. At The Fairfax and Fredericksburg Elder Law Firm of Evan H. Farr, P.C. we are dedicated to easing the financial and emotional burden on those suffering from dementia and their loved ones. If you have a loved one who is suffering from Alzheimer's, we can help you prepare for your future financial and long-term care needs. We help protect the family's hard-earned assets while maintaining your loved one's comfort, dignity, and quality of life by ensuring eligibility for critical government benefits. Please call 703-691-1888 in Northern Virginia or 540-479-1435 in the Fredericksburg area to make an appointment for a no-cost consultation.

About Big Red:

Big Red has lived at The Farr Law Firm's Fairfax office for two years, and he belongs to Evan and Jeannie Farr. He resides on the table behind Jeannie's desk and his bowl can often be found on the hall table when you get off the elevator. He loves socializing with the African Dwarf Frogs (Ernie and Jannette) and greeting all of the clients that come to the firm.

Find Us

Upcoming Events

All Fairfax events are at The Law Firm of Evan H. Farr, P.C., 10640 Main Street, Suite 200, Fairfax, VA 22030, and all Fredericksburg events at at 501 Westwood Office Park, Fredericksburg, VA 22401 from 10 a.m.-12 p.m. RSVP today! We hope to see you there.

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Note: Our next Living Trust Plus: How to Protect Your Assets from the Expenses of Probate and Long Term Care seminars are on November 26 in Fredericksburg and Saturday, December 14 in Fairfax. View the calendar of upcoming seminars and sign up here.
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