According to Genworth Financial, the median cost for a year in a nursing home is up over $91,000 now. Depending upon where you live, it may be more or less expensive, but the general theme is the same: nursing homes are very costly. Because they are so expensive, you would think that avoiding the use of them would be a common effort. However, it’s not. Instead, many people use nursing homes as their first choice, even if they are not absolutely necessary for their loved one’s needs.
If nursing homes are not necessary, paying such a high cost is a waste. Not only does it waste your resources, but it also takes up space in homes that could be better used by those that need the intensive care of a skilled nursing facility even more. What’s more, many people use state run nursing homes as their first choice for care, and these often have competitive waiting lists as state funded care is very limited in some areas.
The paradox here is that although nursing homes are expensive, they are often the first recommendation by public health insurance policies, like Medicare and Medicaid. Some states are shifting away from this, but it’s still in the early stages in most places. New Jersey is a prominent example, and if there efforts are successful, then it could be a very positive example for the rest of the United States. Right now, it looks like the biggest problems are with implementation. The response has been good in NJ so far, but finding enough caregivers to provide for all of the individuals that wish to use this service has been difficult. Many people are finding themselves being placed on waiting lists and in a senior care limbo for the time being. As the kinks are worked out and as the new system becomes integrated into NJ’s revenue cycle, then it should save the state millions of dollars per year. States like California that have bigger populations should be looking to the issues that NJ is facing and beginning to plan ways to work around these issues so as to prevent them in the future.
One of the big findings of the Genworth survey was that most people have no idea how expensive senior care is until they are in dire need of it. Planning ahead and making sure that your family has their bases covered will go a long way toward avoiding the financial strain of last minute senior care planning. Also, looking at alternative types of care like in-home care, can make sure that you are reducing costs. If possible, signing up for a long term care insurance policy now can ensure that you are not wasting money on services that you don’t need. Not everyone will qualify for insurance, but if you can get it, the small upfront cost can save you thousands of dollars a few years down the line. Typically, the younger and healthier you are when you get an insurance policy, the less you will pay.
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