Who Will Have The Money?

I paraphrase an article in the Tuesday, July 22nd Wall Street Journal here, on spending and entitlements.  The Congressional Budget Office long- term budget outlook released July 15 shows a 40 TRILLION dollar increase in debt over the next 2o years.

The CBO simply stops projecting after 36 years as its models cannot conceive of a functioning economy.  What does this have to do with Long Term Care?  If you are expecting government Medicaid to pay for your LTC, you had better reconsider.

The CBO’s estimates show a typical middle class family’s income tax burden nearly doubling over the next 25 years.  No, this is not a rant on taxes, it is a warning that government spending cannot continue as it is (which is increasing).

Each day, 10,000 baby boomers retire and begin receiving Medicare and often, Social Security benefits as well.  While five workers supported the benefits of each retiree in 1960, only two will by 2030.  We do not have the resources for 77 million retirees in the Medicare system, and it’s Medicaid, not Medicare that pays for LTC when you become impoverished (it does not take long with an assisted living facility at $4000/month and a nursing home at $8500/month and doubling every 15 years).

Who will pay for your care when you can no longer manage on your own?  Can your children afford to retire early and become your caregivers?  Your children may be saving less than you, and you probably did not save enough for your retirement.

We are going to be on our own for our LTC.  I bought LTC insurance for myself years ago, when the policies were less expensive, and the insurance companies accepted people that today are often declined.  They learned that diabetes leads to cognitive impairment, and heart disease can lead to strokes.  Both of these afflictions can require years of care.

Some of the LTC insurance companies have had rate increases, due to accepting people they have now learned to avoid.  Some still plan to raise rates regularly, and I avoid those companies.  As an independent agent, I am able to pick and chose the best deal for each client, and I work long and hard to find the best deals.

Some LTC insurance companies do not offer their products in every state, but residents of those states can come to Wisconsin to purchase them from me and they are good anywhere in the USA.  It may well be worth a $250 plane ticket to get a good deal and save $1200 a year on premiums.  If your agent has only one choice, ask why.  If a car dealer had only one car on his lot, would that be the appropriate one for you?

If you are still healthy enough to qualify for an LTC insurance policy, you best start investigating, now!  Get while the getting is still good.  They are actually very inexpensive, when one person of a couple can recoup 30 years of premiums paid by two people in less than one year on claim.  I will be well taken care of, who will take care of you?

More information is available at www.TheLongTermCareGuy.com 

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