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Stalking The Silent Financial Killer In Our Midst

Saturday, April 20, 2013 - 10:43 AM
From Bloomberg:
The vast majority of older Americans, facing steep and rising health-care costs that threaten to bankrupt them, are doing little to protect themselves. Ninety percent of people don't buy long-term care insurance policies, for example. The reasons why are simple: Not only are policies expensive and confusing; many leading insurers have stopped selling them.

Millions of consumers have only one plan for covering long-term health-care costs. It's to spend themselves into poverty until Medicaid -- the state-run health-care program for the poor -- picks up the tab. That puts them in care they often don't want, such as nursing homes rather than home care or assisted-living facilities. It also saddles fellow taxpayers with annual expenses of $130 billion, a third of Medicaid's budget.

"We've got a five-year window to fix this," says Bruce Chernof, chief executive officer of the SCAN Foundation, a nonprofit organization focused on health-care policy. There are still ways for individuals to try and weave their own safety net out of products available today -- a particular need for long-lived women -- but it's not easy or cheap.

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DA member Shorebreak offered some helpful information on how to start the process of vetting and selecting an LTC insurer, based on his experience, in this thread.

FYI, Bloomberg's link in "it's not easy or cheap" is broken as of the time of this post.
7
pearlbrownpearlbrown1,440 posts since
Nov 2, 2010
Rep Points: 6,279
1. Saturday, April 20, 2013 - 7:54 PM
Pearl:  If we had AFFORDABLE healthcare for all,  parents would not have to be spending their savings paying medical bills for adult children or paying for "their" health insurance.    THAT is your "silent killer".  Our non existent affordable healthcare system!  You seem to be concerned with our buying Long Term policies but our President seems to be only concerned with driving all of us into the MEDICAID system in our old age.  Do you really think most seniors who are trying to help their families can do that and buy Long Term Care too?  My concern is seeing that my adult DD has the healthcare insurance she desperately needs "now".  How I end up in my future is up to the unseen forces and not going to be helped by some Long Term Care policy.    If the government would make legal what needs to be legal, none of us seniors would have to worry about being a "dole" on Medicaid rolls. 
1
paoli2paoli21,373 posts since
Aug 10, 2011
Rep Points: 6,013
2. Saturday, April 20, 2013 - 9:11 PM
Paoli, what exactly makes you think I have a vested interest in whether people purchase LTC or not?  I thought the Bloomberg article was worth sharing with other readers in light of other discussions on the subject this week.  Bottom line, it may be appropriate/affordable for some, although not for everyone, and it's an individual decision.   
8
pearlbrownpearlbrown1,440 posts since
Nov 2, 2010
Rep Points: 6,279
3. Sunday, April 21, 2013 - 8:20 AM
Pearl:  I don't think you are the type to post about things you don't care about.  BTW, I "do" have a vested interest in our government finding a way to make affordable healthcare available to all Americans so I do post about things I am truly concerned about.   It's thoughtful of Shorebreak to try to help others find a way to afford LTC but frankly I think that is one of the last concerns most people are thinking about in these times. 
1
paoli2paoli21,373 posts since
Aug 10, 2011
Rep Points: 6,013
4. Sunday, April 21, 2013 - 9:37 AM
It may be appropriate/affordable for some, although not for everyone, and it's an individual decision.  From Morningstar:
Ultimately, purchasing these policies includes an analysis of trade-offs--a lower inflation increase in exchange for lower premiums, for example--and readers had many thought-provoking tips to share on those types of decisions.


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2
pearlbrownpearlbrown1,440 posts since
Nov 2, 2010
Rep Points: 6,279
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