The state of California will soon be facing massive pressure from the surge of seniors and cost of long term care support and services, according to a new UC Berkeley report.
As the number of seniors rapidly increases, the burden of extended health care on the state Medicaid system Medi-Cal will continue to grow. The large-scale potential costs will have a massive impact on the state run program in the future. Researchers project an 88 percent increase in public expenditures for institutional long term care over the next decade.
In the next ten years, the number of seniors in California will increase nearly 70%, from 4.8 million to an estimated 6.9 million.
These seniors are expected to be in worse health than previous generations, which can only increase costs. Obesity, diabetes, and heart disease are just a few of the conditions that affect a large percentage of Americans and are contributing to the rising health care costs.
An increase in Alzheimer’s in imminent, too, with studies estimating the number of Americans with the disease will triple by 2050. Medicaid acts as the primary payer for long term care, covering about 40% of all long term care costs in the nation. Many people wrongly assume that Medicare will take care of the bills and are surprised to learn that is not the case.
People are confused about what long term care is and who pays for it; recent studies have demonstrated this gap in consumer awareness. Increasing life spans have led to a greater need for long term care, at the same time a family caregiver shortage is taking place.
Planning ahead for long term care can help you avoid financial stress and the need to enroll in your state’s Medicaid program. The long term care system faces a huge challenge as the so-called “Silver Tsunami” begins and Baby Boomers enter retirement age. Read more about including long term care in your retirement plan or if you want to learn more about policies, fill out this form and we will provide a personalized quote comparison for you to review.