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The U.S. government predicts a significant increase in both overall and out-of-pocket costs for Long-Term Care which includes: home care, nursing facilities, and continuing care communities (CCRCs) throughout this decade. This rise in costs will lead to challenging decisions for both consumers and the government.
There are two main reasons for the increase in long-term care costs: rising prices for specific services and a growing number of people receiving care, reflecting the increasing numbers of older adults and younger people with disabilities. To protect yourself and your family from these rising costs, consider long-term care insurance. Contact Infinite Retirement Solutions for personalized guidance on choosing the right policy.
Overall home health costs are projected to double from $113 billion in 2019 to $226 billion by 2030. Consumer out-of-pocket costs will grow from less than $13 billion in 2019 to more than $27 billion in 2030. These steep cost increases will have a significant impact on both government and private payers, making it crucial to plan for your long-term care needs.
Costs for nursing homes and CCRCs are expected to increase more slowly, with an average annual increase of about 4.5%. CMS expects out-of-pocket costs to rise steeply in the next few years, then moderate to around 3% after 2025.
Both Medicare and Medicaid will be under significant financial and political pressure to reduce costs. By 2030, CMS projects the two programs will be spending $300 billion annually for home care and nursing facilities, which may not be sustainable. With private insurance, you can ensure you’re covered for your long-term care needs. Schedule a consultation with Infinite Retirement Solutions to discuss the best insurance options for your situation.
As health care costs continue to rise, it’s essential to plan for your long-term care needs. Infinite Retirement Solutions is here to help you navigate the challenges and find the best long-term care insurance plan for you and your family. Speak with a licensed agent to learn more about our policy options and how we can support you in your retirement planning journey.
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Infinite Retirement Solutions (“Infinite”) is an independent provider of financial and insurance products, not affiliated with Medicare, Medicaid, or any other government agency. Information presented here is for general knowledge only and shouldn’t be considered personalized financial or insurance advice. We strongly recommend consulting qualified professionals like financial planners, tax advisors, and legal counsel to determine the suitability of any product or service offered by Infinite. Investments involve inherent risk, including potential loss. Specific product features, limitations, and exclusions may vary. Please refer to the actual policy wording for complete details. Infinite is headquartered in Florida.