A significant number of older adults in the United States are expressing concerns about the healthcare system. According to a report from the John A. Hartford Foundation, 56% of older adults find it difficult and stressful to navigate the health care system. Additionally, 62% believe health insurance plans offer too many confusing choices. Misinformation about health care coverage is also widespread.
Many families face difficult decisions when a parent's health declines. A common scenario involves a family unable to provide round-the-clock care, leading to the consideration of a nursing home. A widespread misconception exists regarding payment for such care. The Kaiser Family Foundation found that 55% of U.S. adults incorrectly believe Medicare will cover a long-term nursing home stay.
The need for long-term care is high. A 2019 study by the government's Office of the Assistant Secretary for Planning and Evaluation found that 70% of adults who live to age 65 will require some Long-Term Services and Supports before they die. Older adults with fewer financial resources are more likely to need this kind of care.
Families searching for ways to pay for assisted living when a parent has limited savings might consider looking for forgotten assets. A 2023 report by Capitalize indicates nearly 30 million 401(k) accounts, worth $1.65 trillion, were left behind by American workers. The U.S. Department of Labor's Lost and Found Database can be used to search for such accounts. Accessing funds can be complex if the individual has cognitive impairment, potentially requiring legal guardianship.
If searching for lost funds does not yield enough for a private facility, the focus shifts to safety and meeting daily needs. Medicaid generally does not cover room and board at assisted living facilities. However, many facilities accept Medicaid Home and Community-Based Service Waivers, which can cover some costs. Nonprofit or church-affiliated facilities may also offer support.
The median cost of an assisted living facility is nearly $6,100 a month, according to SeniorLiving.org. Prices vary based on location, level of care, and length of stay. Long-term care insurance can cover costs for in-home assistance, nursing homes, or assisted living. Companies like GoldenCare offer various plans based on individual needs.
Discussing future care with parents before a crisis is advised. If parents have retirement assets, it is worth asking if they have considered future care costs. Obtaining power of attorney while a parent is still capable is also recommended, as incapacity can lead to a more difficult court process for guardianship.