The future of Medicaid is relatively uncertain.
Obamacare does not seem to be going anywhere.
At least for now.
However, according to a recent article posted by radio station WTOP titled “Why Medicaid matters to you,” many are wondering about the future of Medicaid.
Medicaid is a government program.
It helps those who struggle to afford health care.
Many elderly also use it to help pay for long-term care or nursing home care.
Nursing home care and long-term care are not cheap.
The median cost for a private nursing home room is more than $92,000 a year.
What if you share a room?
The cost is still more than $82,000.
Costs are expected to rise.
In fact, they have risen 19 percent since 2011.
Care in an assisted living facility is a bit less at $43,500.
What about in-home care?
On average this is $20 per hour and $175,000 a year for care around the clock.
In short, care is expensive.
Also, most people will require some form of long-term care—about 70 percent of Americans turning age 65.
Can Medicare help?
Medicare cannot be used to pay for long-term care and private health insurance policies also do not cover this care.
About 28 percent of Medicaid is designated for long-term care specifically.
In 2014 alone, Medicaid paid for 62 percent of nursing home residents.
It also covered those in assisted living or in-home care situations.
More and more Americans are reaching the ages where they will need long-term care.
What can you do if you cannot rely on Medicaid?
Family can be helpful in providing care.
This will likely affect careers and finances for your loves ones.
You could also plan ahead.
Begin saving now to help with some of these costs you will inevitably face.
Look into purchasing long-term care insurance to defray the costs.
This is the route Grethen and I chose eight years ago.
It is hard to say what the government landscape will look like, so it is best to plan ahead.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.
Reference: WTOP (DC) (August 9, 2017) “Why Medicaid matters to you”