Home care Services and Medicare
“The bad news is that expenses to make are more today, and the good news is that we are living longer today,” according to Michael Aun, author, entrepreneur, and state-recognized motivational speaker.
You did everything accurately. You have lowered your spending and developed your savings diligently. Despite all the ups and downs of the market place, its well diversified portfolio has been maintained, controlling the cost of the investment and used many methods to lower taxes on your income. As a result, you have amassed enough funds to finance your retirement income and offer your children a decent legacy.
Regrettably, you will likely give up everything if you fail to take the appropriate steps to secure your properties. I am not referring to the chances of continuous market volatility or an intense recession that is frequently talked about in the news and the opinions of all. I’m talking about the three four-letter words which nobody ever dares to react to. Long-term care includes the financial implication of buying of a retirement home, home care or assisted living.
Why should this be a problem?
According to the US Department of Health and Welfare, 70% of people over 65 need home care at some point in their lives. Of those who need help, more than 75% of them need more than a year.
Life expectancy after age 65 is about 17.9 years, which means that the chances of getting help for chronic diseases are greater now than there are about 10 to 20 years.
The cost of health care is expensive. According to the American Long-Term Care Association, the average cost of care insurance is about $ 73,000 a year. The cost of nursing home care can be considerably higher or lower, depending on the services required and the frequency with which the patient needs treatment.
The cost of care has increased on average by 6% per year for a few years. At this rate, the average cost of care over 12 years will be double the current cost of $ 146,000 per year. Assuming that health care spending continues to grow at the same rate for 12 years, the cost of treatment over 24 years will be $ 292,000 per year.
Medicare only covers the account for the first 20 days of skilled care that takes a minimum of 3 days after admission to the hospital. 2020 Medicare Supplement Plans can cover an additional 80 days of treatment, but only if a doctor indicates that he needs proper care and again after a three-day hospitalization.
• So, what should you do or could you do now?
• Would you like your son or wife to take care of you? If so, how will it affect their lives?
• What you plan to do depends on what you want to do if you need long-term care.
• Which assets will you liquidate?
• If you prefer professional assistance, how would you pay for your services?
• How many more taxes should be paid?