We’re being told that one of the future benefits of the new health-care plan (assuming it survives the Republican onslaught and general hysteria) will be an opportunity to buy long-term care insurance at an affordable price.
That’s a much-needed program. But one has to wonder: apparently the average benefit will be about $50 to $75 a day. That’s as nothing: in Maricopa County, where Phoenix resides, typical cost for a nursing home is over $200 a day! And that’s just the base rate: everything, but everything costs more. If you need a wheelchair, you have to rent it. Any therapy or special care beyond just leaving you sitting there and maybe wheeling you down to the dining room is extra. At that rate, a $50/day stipend won’t hold off bankruptcy for long.
We’re told it may be enough to cover adult day care, which apparently ranges in cost from $20 to $75 a day, depending on where you live. This arrangement, which essentially entails institutionalizing an infirm senior during the day but allowing her or him to return home at night, would require someone to schlep you to a day care center every day. You have to possess all your marbles, be continent, and be mobile, a combination that doesn’t necessarily describe most elders who need daily care.
In-home care, which might keep you out of an institution or at least stave off the evil day, costs $112 to $192 a day, only a few dollars less than the average $205 a day for a private room in a nursing home.
The Congressional Budget Office estimates that for the program to break even, premiums will have to average $1,477 a year. That’s $123 a month.
My long-term insurance with Metlife costs just under $80 a month, and it will pay up to $128 a day for nursing care for an unlimited number of years, plus caregiver training, respite care, durable medical equipment, and installation and maintenance of an emergency response system.. The cost is relatively low, compared to the CBO’s estimate for the federal program, because I bought in when I was fairly young.
So, by comparison the government plan will be expensive and its benefits skimpy. Given that nursing home care can quickly bankrupt you, even a little help would be good. But if you’re on the hook for $150 a day even after having paid $128 a month for coverage over many years, you’re looking at drawing down $4,500 worth of your assets a month for nursing care. That’s $54,000 a year.
A $50/day benefit comes under the heading of too little, too late.
That’s just silly $25 a day? I almost think, why even bother? It’s going to cause a false sense of security in people who don’t understand that it’s not enough.
Also I think we better find some kind of mainstream solution to this problem or a lot of people are simply going to be unable to care for themselves. . . and they may turn to the government for help.
Wait a min, Funny! Hell may be freezing over because I think we agree on something political.
“So, by comparison the government plan will be expensive and its benefits skimpy.”
Of course the private company can provide more because it can pick and choose who to insure – which is how INSURANCE SHOULD BE!
BTW if you are at the level of bankruptcy anyway, medicaid would be picking up your nursing home. Which is a whole different issue. lol
Funny,
Don’t forget that, if the government is running it, it won’t be paying full price. For example, I went to an ARNP who charged $100 (mental health ARNPs are extra expensive). I had to pay 50% of whatever Medicare deemed appropriate.
I saw her 4 or 5 times and paid $79 total. I feel a little bad for the practitioner, although she chose to accept Medicare, but that means Medicare deemed $100 visits to actually be appropriate at $40, give or take.
So if the gov’t gets to decide what it is willing to pay, then the per diem might just be enough. Remember, most nursing homes are being paid for either by insurance or Medicare already. So that $200 they list is a fallacy. Insurance might pay 60% and Medicare will pay even less.
It’s all about the power of bargaining — because those groups have the numbers to make group homes want to cooperate.
@ Evan: Holy Mackerel! This is scary! To add to the brew, today I found something else I’m afraid we’re going to agree on. Will try to post on the same tomorrow ayem.