Your health care is a lot to ask of your children

70 percent of Americans who reach age 65 will need Long-Term care at some point, but few are prepared to pay for it, according to a new report by the SCAN Foundation on the State of Long-Term Care Financing. The report also finds that families bear a huge part of the burden, providing $450 billion in unpaid care-giving and over $63 billion in out of pocket costs.

No matter how close you are to your children, that’s a lot to ask of them. Your family may be an exception, but the fact is that families are very different now than they were a generation or two ago. Parents remarry. Sometimes more than once. Today’s adult children may have several “parent-figures.” And today’s young adults are moving farther away, and moving more often.

As a step-parent myself, I understand today’s families are complicated. Those approaching retirement assume that they will be able to rely on government support or their immediate family to provide for their care in the future, but that is no longer true. And, according to a 2010 Harris Interactive survey conducted by Age Wave, “(Seniors) are generally more afraid of burdening their family than dying.”

Long-Term Care Insurance helps mitigate some of that family complication by transferring the financial and care risk to a fixed, pre-determined place – your insurance plan. With a well-thought-out retirement plan and Long-Term Health Care Insurance, you won’t need to worry about your future care – and neither will your children..

I know from years in the financial and insurance industry that knowledge is power. I would add to that, “Risk is risk.”

Take it upon yourself to make an informed health care decision and complete a written, insured plan. Your children will thank you.

~ Elise

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Health costs are skyrocketing. You need additional insurance protection.

AARP keeps telling us this fact, and I keep reminding my clients to pay attention: The U.S. health care system is the most expensive in the world.  AARP’s 2009, 2010, 2011 and 2012 studies all point to just how expensive it can be to have healthcare in our country. What’s more frightening is that medical costs continue to rise each year. Dramatically.

Here are the facts according to reports from both AARP and the American Heart Association:

  • Americans spend an average of $8,200 per person on general health care every year (For comparison, Canadians spend just $4,400 annually).
  • A typical hospital stay costs an average of $236 per day in India, $655 per day in France and a whopping $3,949 per day in the U.S. (2011 Comparative Price Report Medical and Hospital Fees released by the International Federation of Health Plans.)
  • The first day of hospital admission averages $1,246, while the cost of discharging a patient averaged $304.
  • An average hospital stay in the U.S. is about $18,000. In the Netherlands and Japan, the 2nd and 3rd most expensive, comparable costs are $4,000 to $6,000 less.
  • U.S. average hospital charge for coronary artery bypass was $122,743 in 2010.
  • Average U.S. cost of hospitalization for a stroke was $87,600 in the same year.

These prices are averages, and don’t reflect costs paid by health insurance. These prices also only reflect hospital costs. Add your surgeon’s bill, your anesthetist, medications, plus quite often, rehabilitation and home health care, and frequently, nursing home care. Even Medicare or a good general supplemental health plan will only pick up 80% of these costs. (That still leaves a substantial amount on the table to be picked up by YOU!)

Don’t let a health crisis deal a critical blow to your finances. Be ready. Advance care planning is a conversation you need to have with a health insurance professional BEFORE anything happens!

~ Elise