Dealing with High LTC Costs in Your State

With the cost of care rising at a fast rate people have only two options for their future. They can study long term care costs by state and fly to a place which offers the lowest rate for nursing home care or they can do the most logical thing, which is, to plan their long term care (LTC).

Whether you choose to stay in your state of residence or migrate to another upon retirement, you cannot avoid the high cost of care as this is expected to stay and even grow fourfold in less than 20 years.

According to demographers the population over 65 years old is growing rapidly and thus the increased demand for care. In 2030, the senior population is projected to double but the sad truth is that only 10 million of the total population have long term care insurance (LTCI) policies. Simply put, the number of Medicaid beneficiaries shall once again increase and more Americans will lose their homes and other assets.

Anyone who turns to Medicaid for LTC does not get to keep any of his valued possessions as this federal health insurance program, which is state-regulated, strictly requires applicants to spend down their assets up to a certain amount.

If you’re wondering why this has to be done it’s because Medicaid is not for the rich or middle-class but for poor families; those with an income that is below the poverty level.

If Medicaid will step in every time somebody needs LTC it won’t take long before its source of funds dries up.

Restructured Medicaid Controls Long Term Care Costs By State

In the past, one-third of Medicaid’s total spending was attributed to the country’s total LTC costs. Each year the number of people relying on private insurance or self-insuring their LTC continues to decline, thus putting Medicaid in an unpleasant situation.

To preserve the remaining funds of Medicaid, the government finally decided to restructure the program’s eligibility process. So in the end, senior folks who have been receiving LTC in nursing homes through Medicaid were either sent back to their homes or transferred to a community-based LTC facility such as an assisted living where they continue to receive care via Medicaid.

Families of senior residents in nursing homes that were sent home reacted violently to the government’s decision as they feared the health of their loved ones could potentially relapse. Later on, they eventually understood that these efforts of the government are intended for the good of LTC recipients and the whole nation.

To avoid figuring in such event in the future, which is having the government step into your life to make decisions for you , plan your LTC very carefully and wisely. While you’re in your heyday, identify your possible LTC requirements 30 or 40 years down the road and compute the cost of care that you’re likely to deal with when that time comes.

Long term care costs by state vary according to population, demand for care and accessibility to LTC facilities. Like you, there are many others worried about tomorrow’s cost of care but if you succeed in clinching the right LTCI policy you and your family will enjoy years of financial freedom.