The FINANCIAL — Worried about how you'll pay for long-term care in old age? You're not alone.
More than two-thirds of Americans are anxious and uncertain about how they'll meet nursing home or home care costs should they need them, according to a new Harris Interactive/HealthDay poll.
Most people were also wrong about how most of these costs are covered under the current system. About half (49 percent) mistakenly thought the bulk of the bill was paid by individuals, while one-third guessed Medicare. Only 19 percent understood that the major funder of long-term care is actually Medicaid, the government agency that covers health services for the poor.
One thing most people agree on: as America ages, the problem of how to pay for seniors' long-term care will only get worse. Eighty-seven percent called the situation "serious" or "somewhat serious."
They're right to be worried, said Howard Gleckman, a fellow at the Urban Institute in Washington, D.C., who focuses on long-term care issues.
"This is a huge and growing problem," he said. There are currently about 12 million Americans in some form of long-term care, he noted, and that's expected to double within the next 20 years.
It's estimated that most Americans — more than two-thirds of those aged 65 and up — will need some type of long-term care, such as a nursing home, home health aide or adult "day care" center, according to Harris Interactive Inc.
In the new poll, a similar percentage — 68 percent — expressed worry about how to pay for it all.
The problem of how to pay for rising costs of senior care was not addressed by the Affordable Care Act, or what some call "Obamacare." And Gleckman said that policymakers have shown no agreement on where to go from here.
As for the general public, past research proves that few of us even know how long-term care is currently financed, Gleckman noted. And the new poll confirms that.
For example, "very few people understand Medicaid's role in long-term care," Gleckman said. The problem for families is that Medicaid coverage only kicks in once people have spent down their assets enough to qualify for assistance, according to Harris Interactive Inc.
The other option is for people to plan in advance and buy pricey private insurance that specifically covers long-term care. The poll found that 64 percent of Americans think "most people" should buy long-term care insurance.
But thinking that something sounds good, and actually doing it for yourself are two distinct things, Gleckman pointed out. Based on current statistics, less than 8 percent of U.S. adults have bought long-term care insurance, he noted.
In the new poll, 79 percent said they supported the notion of tax breaks that would help people purchase long-term care insurance, with similar numbers of Republican and Democrat respondents in favor of such a move. Whether any tax perk would actually encourage more Americans to invest in private insurance is the big question, Gleckman said.
With the age of the average voter steadily rising, "how we will pay for long-term care in the future is likely to become a huge political issue," added Harris Poll chairman Humphrey Taylor. "The cost is already well over $200 billion and is almost certain to grow rapidly as many more baby boomers grow older."
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