Now that we have arrived at the long awaited generational stage in our society that “Baby Boomers” are reaching the age of Medicare eligibility, the need to address the question of who is going to pay for a massive increase in long term care spending has become paramount. Exacerbating the growing crisis is the impact of the economy on the availability of private pay dollars and government spending. For the last two years we have watched as one of the primary sources of private funds, equity in the homes of seniors has evaporated. Simultaneously, state and federal budgets feeling the pinch of an eroding tax base and out of control spending on health care have started cutting back on Medicare and Medicaid spending.
We are at a crisis point in our nation’s history. The cost of long term care continues to rise every year, and seniors (and their families) confronting the realities of what it costs to provide home based care, assisted living, or long term nursing home care are looking for solutions.
For those families with a long term care insurance policy, a portion of these costs may be covered if they meet the necessary eligibility requirements. And for those families with the last name Gates or Winfrey, they can just cut a check. But what about the vast and often overlooked middle market? Where do they find the resources to cover all or a portion of these costs?