LONG-TERM CARE

 

Long-term care has become an important public concern for several reasons.

Medical advances

These advances have changed many short-term health problems into long-term health problems. Yet while modern medicine prevents death, in many cases, it cannot restore health completely. Particularly for older people, life-saving medical treatment often is the threshold to months or years of custodial care.

Baby Boom

In 1986, more than 30 million people - 12 percent of all Americans - were older than 65. By 2030, that age group will have grown to 66 million, more than 20 percent of the population. People who think long-term care “won’t happen to me,” stand on increasingly shaky ground; for example, at age 65, there is a 40 percent probability of being in a nursing home before death.

Lifestyle Changes

The commitments of everyday life have made it difficult for families to take care of their parents or grand parents. Today, many families depend on two incomes in order to make ends meet. Many children are required to move from local surroundings, leaving elderly parents to take care of themselves.

Inadequate Medical Coverage

Nursing homes can cost $20,000 to $40,000 a year and three home health visits a week can cost $5,000 to $8,000 a year. In 1988, Americans spent $47.5 billion on long-term care, of which $40 billion went to nursing home care for the elderly.

Awareness

With the enormous cost associated with long-term care, it is unlikely we will see any publicly-funded comprehensive long-term care program in the near future.

The good news is that an important new participant - the employer - has joined the game and is on the side of the individuals. This new player could make a big difference in the final score.

In recent years, employers' interest in long-term care has increased dramatically for many reasons:

• Protecting employees financial security
• Increasing employee satisfaction
• Reducing medical costs
• Preventing productivity losses