How much can you afford to keep your debilitating loved one at home?
This was the heartbreaking calculation my mother-in-law faced earlier this year when she wanted to take her husband, father-in-law, home after he suffered a debilitating heart attack in December. Medicare doesn’t cover long-term care, so all the money going to the home health aide had to come from her savings.
According to A Place for Mom, a senior housing placement service, the median cost of home care in the United States is $30 an hour, and just two hours of daily visits can add up to more than $20,000 a year. .
But 2 hours a day is often not enough. My mother-in-law started hiring an assistant to come in two days a week for four hours, and she, a retired hospice nurse, took care of the rest of the time. But with an elderly mother at home as well, she needed more help and ended up hiring an assistant more days and hours, totaling nearly $4,000 a month by the time her father-in-law passed away in March. It became.
Vice President Kamala Harris’ new proposal this week to cover home health care under Medicare would have changed that calculus. My mother-in-law would have been spared some financial worries if she had paid some, perhaps all, of the costs of getting adequate professional help during the worst period of her mother-in-law’s life.
“It’s about the dignity of the individual,” Democratic presidential candidate Harris said when outlining a plan to pay for home health aides on a sliding scale based on income. will use savings from the proposed Medicare drug expansion to negotiate the price to pay for this service. )
“It’s about that person’s independence.”
“It’s about dignity.” (Photo: Getty Creative) (Shestock via Getty Images)
“A much bigger problem”
The number of people who need this type of support will continue to increase.
The number of elderly people who require some form of nursing care is likely to continue to increase, with the baby boomer generation, once the largest generation, reaching nearly 80 years of age. My father-in-law was born in 1947, a year after care began, so he was at the cutting edge. of the baby boomer generation.
According to Dr. Carolyn McClanahan, founder of Life Planning Partners, approximately 70% of people will eventually need some type of care as they age. Their needs often begin with meal preparation and help with household chores, and then shift to more thorough care, such as bathing. And eat as you get older.
“The need for long-term care starts to skyrocket in people’s 80s,” McClanahan said. “Long-term care will become an even bigger issue as the baby boomer generation ages rapidly.”
Families learned that Medicare, the federally run health care program for 67.5 million seniors and people with disabilities, does not cover most long-term care, whether in nursing homes or at home. , often perplexing. (Short-term rehabilitation after injury or illness is also covered.)
story continues
Only Medicaid, a federal program designed to provide health coverage to low-income people, provides this long-term care. To qualify, you must have very few assets in your name.
Another way to avoid paying out-of-pocket for this care is to purchase expensive long-term care insurance, which only a few people have. According to KKF, only 11% of adults and 14% of those 65 and older reported having private long-term care insurance.
Even that is not a panacea.
“I’ve been doing this job for 20 years, and working with long-term care insurance companies is a pain,” McClanahan said. “Because they definitely make you jump through hoops to make a profit.”
cost of care
According to AARP, nearly 80% of caregivers pay for care on a daily basis, spending an average of $7,242 each year. (Photo: Getty Creative) (kali9 via Getty Images)
So when a loved one needs long-term care and the family can’t afford to pay for it all, what often happens is a spouse, sibling, or adult child steps forward and provides some of the care themselves. It is to do.
According to AARP, there are an estimated 48 million adult family caregivers in the United States, 61% of whom also juggle work responsibilities. According to AARP research, most receive at least 20 hours of care each week, including assisting with daily activities, performing nursing tasks, coordinating services, providing transportation, shopping, and advocating for a loved one.
The financial and emotional burden is immeasurable.
According to AARP, nearly 80% of caregivers pay for care on a daily basis, spending an average of $7,242 each year. Women who quit their jobs to become caregivers after age 50 could lose more than $300,000 in wages and retirement benefits over their lifetime.
And caregiver burnout is real. According to AARP, 56% of caregivers said their role made it difficult to manage their own mental health, and 23% said the same about their physical health.
Receiving paid assistance can give you a much-needed break. Just ask your mother-in-law.
“I was able to make it back by getting my car serviced, going to a new store nearby, and buying some snacks,” she wrote in an email to her family shortly after the entourage’s visit.
Sadly, less than four months after the heart attack, my father-in-law passed away at home in my mother-in-law’s arms. A medical aide was also by her side.
The time she spent with her husband at home was a “gift from God,” her mother-in-law wrote in a eulogy shared at her father-in-law’s celebration of life.
“We spent almost all of our time together, playing games, doing puzzles, holding hands while watching basketball… those five weeks were a healing gift for both of us.”
Harris’ proposal would allow more families to afford and enjoy the same gifts.
Janna Herron is a senior columnist at Yahoo Finance. Follow her on X @JannaHerron.
Click here for the latest personal finance news to help you invest, pay off debt, buy a home, retire, and more.
Read the latest financial and business news from Yahoo Finance
