[…] The ACLU estimates that it takes $72,000/year to house an elderly inmate, and this is similar to what a year in a nursing home costs. Prisons aren’t the only places that are being impacted by the rising cost of long term care – it’s a problem facing all of us as we age, and the cost of long term care has appeared to be recession-proof, showing no signs of decreasing.
Archives for August 2010
There is quite a bit of misunderstanding around financial planning for long term care. Some of that has to do with confusion over the differences between Medicare and Medicaid, and what those programs will actually cover when it come to long term care. There is also some confusion around what is meant by long term care.
Medicare is a federal program designed to cover the cost of health care for elderly Americans as well as those with disabilities. Medicaid is a joint state and federal health care program, but it provides […]
[…] it’s unclear at this point how the government will view money spent on programs designed to enhance employee health. If they are counted in addition to the cost of health insurance, it might bump a lot of employer group health insurance plans into the realm of “Cadillac” coverage and subject the employers to financial penalties. In that case, there will be little incentive for the employers to continue to provide the benefits. But without considering things like tax penalties, it makes a lot of sense for employers to do everything that they can to protect the health of their workers. It really is a question of risk management, and employers’ desires to protect their assets (in this case, their employees) […]
[…] But the downside is that you have to be able to accumulate a large amount of cash in order to shield yourself against financial devastation if you do end up needing significant long term care. 63% of workers over the age of 55 have less than $100,000 in retirement savings, so adding the need to save an additional large sum of money specifically designated for long term care needs might not be realistic for most people. […]