Long-Term Care: Planning Ahead for Boomers

0:00On March 25, more than half of Americans over age 65 will eventually need help with daily tasks like bathing or eating and some studies put. That number as high as 2 thirds, yet only about 3-4% of those over 50 have private long-term care insurance. Medicare covers hospital stays but not ongoing nursing home or assisted living costs. As baby boomers hit their mid-60s, many planned-to-tap savings, family caregivers or Medicaid for the poor. But care runs about $78,000 a year for home-aids and over 111,000 for nursing homes while median. Retirement savings hover around $200,000, gone in just a couple years without help. Families often face tough choices, with experts pointing to a strategy of legally spending down assets to qualify for Medicaid sooner. This preserves some resources before costs wipe everything out, especially for middle-class folks facing strict income and asset limits, like under.

1:00$3,000 monthly income and $2,000 in countable assets. States handle Medicaid differently, with look back rules checking five years of finances to spot improper transfers. Allowable spends include prepaying funerals, paying debts, or covering care bills upfront. Medically needy programs in over 30 states let high medical costs count toward eligibility too. Planning early makes sense. Consult elder care pros or groups like Justice and Aging, and consider long-term care policies bought in your 40s or 50s to lock in affordable coverage before needs arise. This has been Global News Today, powered by AI.