Long-term care costs increase 5% yearly

Two newly released studies demonstrate that the cost of long-term care continues to increase. A General Electric survey of the cost of private rooms in nursing homes concluded that the average cost increased about 7 percent over 18 months. A MetLife study observed a corresponding 8 percent increase over a similar period of time. Each conclusion is approximately equivalent to a 5 percent annual increase.

Studies indicate that the average nursing home stay is 2.4 years. Nationally, the projected average cost in 2003 is more than $66,000 per year, equaling $158,000 for the average stay. Springfield is consistent with these annual increases, resulting in an average yearly fee of around $45,000. Costs of operating expenses (utilities, food, salaries, turnover costs, services etc.) below-cost state reimbursements, insurance (especially liability and workers' compensation), more requirements by the government, and general medical expenses are often mentioned as reasons for increasing rates.

Long-term care consists of a wide range of support and health services for people who no longer are able to perform daily activities (such as eating, dressing, bathing and toileting) entirely independently. Long-term care can be provided informally at home by family members or commercially by home-care providers, adult day-care centers, assisted-living facilities and nursing homes.

The need for long-term care is exploding, yet the ability for family members to provide care is decreasing, hence reliance on commercial providers continues to increase.

It is very important for people to consider the potential impact that long-term care could have on their families and businesses. When an employee or employee's relative needs long-term care, the impact is much greater than can be quantified. The resulting emotional, financial and lifestyle problems can best be handled if the family has prepared in advance.

How can you prepare for these potentially devastating consequences? Education and communication are key, including:

talk with elders, siblings, cousins clearly and realistically;

tell them you love them;

help them to record their legacy;

know their final wishes;

discuss care-giving alternatives: scout them;

determine whether their housing is appropriate;

identify professionals accountant, attorney, care advocate;

identify potential costs; and

consider ways of financing.

consider long-term care insurance

The earlier the decision on this, the better. Premiums will be much lower, and ill health and age won't factor into available options. For those wishing to cut costs in advance, fully paid, long-term care policies are now available.

There are 35 million people over age 65 today, and that figure will reach more than 70 million by 2030. People age 85 or older are the fastest-growing segment of the population of the United States. Unfortunately, 83 percent of people age 85 or older live simultaneously with chronic conditions, disability and accompanying functional limitations, according to the AARP's May 2002 "Beyond 50: A Report to the Nation on Trends in Health Security."

For these reasons, the cost of long-term care is a major concern for private citizens and for the government.