See article in The Olympian HERE.
From a blogger (Time Goes By):
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WASHINGTON BECOMES FIRST STATE TO CREATE LONG-TERM CARE PROGRAM
TGB reader John Gear sent this story about Washington state enacting the first insurance program for long term care.
”All residents will pay 58 cents on every $100 of income into the state’s trust. After state residents have paid into the fund for ten years—three if they experience a catastrophic disabling event—they’ll be able to tap $100 a day up to a lifetime cap of $36,500 when they need help with daily activities such as eating, bathing, or dressing.”
Washington Governor Jay Inslee signed the bill into law last Monday. You can read more at The Nation and The Olympian.
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This is not to consider how much skilled nursing care costs (which means Nursing Homes - which is covered mostly by Medicare/Medicaid) and that this is just a drop in the bucket for those who need assisted living type care. Assisted living is the step between independent living and skilled nursing care. But this is certainly a great step in the direction to meet the needs of our growing elder population which can still live independently with some help.
The Olympian says:
Under the new law, premiums of 0.58% of wages will start being collected from employees by 2022. Starting Jan. 1, 2025, people who need assistance with at least three "activities of daily living" such as bathing, dressing or taking medication could tap into the fund to pay for things like in-home care, home modifications like a wheelchair ramp and rides to the doctor.
To be eligible, workers will have had to have paid the premium working at least 500 hours per year for three of the previous six years in which they're seeking the benefit or for a total of 10 years, with at least five of those paid without interruption.
According to AARP of Washington, 70% of residents 65 and older will require some type of assistance to live independently.
Democratic Sen. Guy Palumbo said that the bill is "not only the morally right thing to do, but it's also fiscally responsible for the state of Washington."
"Rather than making people buy their way down into poverty, we're trying to do the right thing to make sure they can age with dignity," he said.
Washington isn't the only state that has contemplated long-term care, but it moved the fastest on creating a defined insurance policy.
Hawaii has adopted a public cash benefit for caregivers of the elderly. California is considering a ballot initiative on a public long-term care financing program.
Michigan and Illinois are beginning to study public programs for those not on Medicaid, and Minnesota's human services department has proposed two alternative private financing options, according to Howard Gleckman, a senior researcher at the nonpartisan Urban Institute think tank.
Last year, voters in Maine rejected a referendum that would have provided home care to all seniors and disabled people regardless of income.
In my case, as a 76-1/2 year old retiree, I've lived here in Black Mountain NC s12 years and eaten away much of my savings. I'm now happily a resident of a senior complex of apartments serving about 70 units. We have some income-scale assistance through the state of North Carolina, which means our rent is based on our assets and our debts. Several of my neighbors receive home visits by home-health agencies, and are enrolled in programs providing bathing, medication, dressing and/or household assistance.
We also have a great transportation program to doctors offices, and several of our local pharmacies give deliveries. My neighbors in their 90s have a bit less mobility than I do, but also can attend the daily lunch program (M-F) provided at cost by the Council on Aging. Probably at less than cost, getting a balanced meal for $1.50 donation. Even MacD's can't provide that. The senior lunch program is provided at a local Senior Recreational Center, where a lot of other activities are available to offer us the most important health benefit of socialization...most free of charge. We have a lot of senior people who live here in the summertime, and are happy to take part in the lunch and other recreational activities, while they have left their winter homes closed up elsewhere. So this lunch program is a good deal for anyone over 60. Actually all the recreational activities are available to any age residents.
Very interesting... I believe Colorado may be doing something with long term care as well. It is definitely just a drop in the bucket when you consider the costs... Home visits by a private home health agency aide is $30/day minimum of 3 hours. Nursing Homes here start anywhere from $6000 -$8000/mos, and go as high as $10,000/mos... Medicare will only pay for a "skilled nursing facility" for 21 days *after* a hospitalization of so many days. After that you either private pay or I guess see if you can qualify for Medicaid. We were fortunate that Medicare paid for Mom's in home Hospice Care. Have no clue what 3 months of Hospice Care cost - an aide 2x/week just to bathe her, and an RN once a week just to check vital signs and assess her condition - 45mins to an hour. The "daily care" was up to us, her children. She was bed bound. She couldn't afford assisted living or a Nursing Home. My mother-in-law was a private pay patient in a rehab center in NM for 4+ years with Alzheimer's at $6400/mos. She was fortunate that her father was smart enough to start a Trust for her when she was a child specifically for her care, which would have been back in the 1920's!. We don't think that far ahead today...
ReplyDeleteIf one is already retired how do they qualify if they haven't been paying into the long term care program? I imagine one could *purchase* long term care insurance in that case, which I imagine is expensive...
Ahhhh - the joys of aging - sigh... It is a scary thing sometimes, especially after witnessing my mother's 3 month decline.
I have several friends (married at the time) who sold their homes and moved into a life-long-living place. That's probably the wrong term for a place with independent duplexes and apartments, then assisted living apartments, then nursing home care. It costs quite a bit to buy into the place, but I imagine it gives peace of mind to many. One couple ended up with a spouse having Alzheimers, and the care he received took much of the burden of care off his spouse. I wish that was more easily available.
ReplyDeleteMe too! They have those complexes here too, independent living, assisted living and nursing home care. You basically sell your house and give the profits to the facility. But like you said, it would give peace of mind knowing that everything is taken care of... :)
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