Rising Costs Highlight Importance of Long-Term Care Insurance

7/23/2010

The cost of long-term care is causing millions of Americans to reconsider their financial and insurance needs as they approach their retirement years. However, healthcare institutions are being forced to confront their own economic problems brought on by the ever-rising cost of long-term care.

According to a recent report on the New York Times website, the proportion of Medicaid long-term care spending, particularly on home and community services, recently reached an all-time high of 27 percent.

The newspaper added that this benefits elders and other long-term care patients by allowing them to stay at home, while also saving substantially on the cost of nursing homes - which is reportedly one of the largest care-related costs for taxpayers. The Times also noted that the average annual cost of a semi-private nursing home room is more than $67,000.

The federal healthcare reform bill that passed earlier this year included a provision that should help address the long-term care needs of at least some Americans.

Long-term care insurance is especially important because people are living longer than ever - and the Medicare program does not typically cover nursing home costs and a large portion of other needs, such as home healthcare.