Not Just a Nursing Home Anymore…

May 10, 2020

     Due to medical technology and better health care, people are living longer after retiring. Many people see Nursing Home care as Long-Term Care. However, Long-Term Care generally refers to the broad range of medical and personal services provided to the chronically ill, aged, or disabled.  A person would receive this care in an institutional setting, or it can be in their place of residence.

You will hear Activities of Daily Living (ADLs) as the standard of determining a person’s independence. Those activities include eating, dressing, toileting, bathing, continence, and transferring from a bed or chair. Instrumental activities of daily living (IADLs) are housework, using a telephone, preparing and taking medications correctly, preparing meals, and especially managing money.  Cognitive impairment inhibits one’s ability to reason and remember. This type of impairment may become serious as time goes on.

The cost associated with the care to individuals who are not able to perform the ADLs or IADLs is growing each year. There are three types of care that need to come together to assist these individuals. Medical, environmental, and personal. All three levels of care may be needed, but in different percentages. Thus, individual specific protocol will determine their care going forward. The realization may come when the individual may no longer be able to stay at home to receive the proper care. People will need long-term care insurance to cover the costs of services they may need. Otherwise, the individual will pay the long-term care costs directly, or they must rely on government programs to help with these costs.

Many people reach the age of 65 and believe Medicare and their Medigap Policies covers long-term care facilities. This is not correct. Medicare pays only limited benefits when certain medical criteria are met. After 100 days, the patient and family are on their own to pay for this care.

Medicare is not the answer to long-term care costs!

     Studies show that, as the American population lives longer, it will place unprecedented pressure on the health care system. Medical costs are rising and the need for medical services increases with age. Although government programs provide some coverage, many impaired people will have to pay for much of their own long-term care costs.

The answer to the struggles of addressing long-term care is long-term care insurance. This can be through an annuity or through a long-term care insurance policy. Long-term care insurance agents have guidelines that require them and the insurers to have suitability standards in place before discussing any long-term care insurance policy with a client.

Informal Caregivers, family and friends, may not be willing or able to provide the proper care that is necessary for the patient. The cost of Formal Caregivers depends on the area of the country.

As part of your annual review, mention your long-term care wishes to your Financial Advisor. They will help develop a plan to address the costs that are associated with your continuum of care.

Allina Bell

Financial Advisor

Capital Investment Services & RJFS

Capital Investment Services, LLC is not a registered broker/dealer, and is independent of Raymond James Financial Services. Investment Advisory Services offered through Raymond James Financial Services Advisors, Inc. Securities are offered through Raymond James Financial Services, Inc. Member FINRA/SIPC. This material is being provided for information purposes only. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Opinions expressed are those of Allina Bell and are not necessarily those of Raymond James. All opinions are as of this date and are subject to change without notice.