What are the Costs of Aging?
The increase in life expectancy during the 20th century has been a remarkable achievement. If mortality rates remain constant, persons age 65 in 2000 are expected to live another 18 years.
Older age, however, is accompanied by increased risk of certain diseases and disorders. New financial and emotional issues will arise disproportionately affecting the 80 plus group, causing large outlays of medical and health care expenditures.
Significant proportions of older Americans suffer from a variety of chronic health conditions such as arthritis, hypertension, Parkinson’s disease and Alzheimer’s disease. The leading causes of death for older Americans are heart disease, cancer and stroke with cancer on the rise
In 1994 Nursing home costs in the United States were approximately $72.3 billion. Out of this, Medicaid paid approximately $34.0 billion, Medicare paid approximately $5.9 billion, and individuals paid out of pocket approximately $32.9 billion with private insurance paying only 3-4%. In 1996, the average annual expenditure on health care (both out of pocket expenditures and expenditures covered by insurance) was $5,864 among persons ages 65 to 69, compared with $16,465 among persons age 85 or older.
Daily long-term care nursing home daily costs in 1999, according to Kiplinger ranged from a low of $90 - $413 depending on your state. A one-year stay in a nursing home varies from $33,000 to $150,000. In Florida the costs range from $40,000 to $50,000 per year.
According to a recent study released in December 2001, baby boomers (born between 1946-1962) are unrealistic and unprepared for what is in store for them in the next few years. Boomers are now purchasing care for themselves as well as for their frail parents. As consumers, boomers are more empowered (internet) and impatient.
The great expense of long-term care can evaporate lifetime savings in a matter of months. Since the overwhelming majority of Americans lack private insurance, the primary option available for families who need long term care is Medicaid, a program created for the impoverished elderly, with limited choices available.
For the future, as the cost of long-term care continues to soar for both government and individuals, there is likely to be more cooperation between government, employers and insurance carriers to convince individuals to insure against catastrophic risk. Since it is unlikely that any new government taxes will be raised to pay for this benefit, employees will usually pay the entire premium.
The increase in life expectancy during the 20th century has been a remarkable achievement. If mortality rates remain constant, persons age 65 in 2000 are expected to live another 18 years.
Older age, however, is accompanied by increased risk of certain diseases and disorders. New financial and emotional issues will arise disproportionately affecting the 80 plus group, causing large outlays of medical and health care expenditures.
Significant proportions of older Americans suffer from a variety of chronic health conditions such as arthritis, hypertension, Parkinson’s disease and Alzheimer’s disease. The leading causes of death for older Americans are heart disease, cancer and stroke with cancer on the rise
In 1994 Nursing home costs in the United States were approximately $72.3 billion. Out of this, Medicaid paid approximately $34.0 billion, Medicare paid approximately $5.9 billion, and individuals paid out of pocket approximately $32.9 billion with private insurance paying only 3-4%. In 1996, the average annual expenditure on health care (both out of pocket expenditures and expenditures covered by insurance) was $5,864 among persons ages 65 to 69, compared with $16,465 among persons age 85 or older.
Daily long-term care nursing home daily costs in 1999, according to Kiplinger ranged from a low of $90 - $413 depending on your state. A one-year stay in a nursing home varies from $33,000 to $150,000. In Florida the costs range from $40,000 to $50,000 per year.
According to a recent study released in December 2001, baby boomers (born between 1946-1962) are unrealistic and unprepared for what is in store for them in the next few years. Boomers are now purchasing care for themselves as well as for their frail parents. As consumers, boomers are more empowered (internet) and impatient.
The great expense of long-term care can evaporate lifetime savings in a matter of months. Since the overwhelming majority of Americans lack private insurance, the primary option available for families who need long term care is Medicaid, a program created for the impoverished elderly, with limited choices available.
For the future, as the cost of long-term care continues to soar for both government and individuals, there is likely to be more cooperation between government, employers and insurance carriers to convince individuals to insure against catastrophic risk. Since it is unlikely that any new government taxes will be raised to pay for this benefit, employees will usually pay the entire premium.
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