Surging Demand and Aging Baby Boomers Drive Up Costs of Elder Care

Caring for ailing or aging family members can be financially burdensome for many American caregivers. As the baby boomer generation ages, the costs associated with caring for older adults are becoming more apparent and expensive. Data from the Altarum Institute shows that the price of nursing home care increased by an average of 2.4 percent each year between 2012 and 2019, resulting in a cumulative increase of 20.7 percent. These rising costs can be attributed to various factors, including personnel expenses and the expenses of adhering to facility regulations.

However, the primary reason for the increase in care costs is the growing demand for adult day cares, assisted living facilities, and nursing homes. Many caregivers, like Jean Spera, find themselves overwhelmed by the financial strain of providing care. Spera became a full-time caretaker for her husband, John, in 2011 when his health deteriorated rapidly. Despite managing his care at home for years, Spera faced a turning point when John had a seizure in their kitchen. His doctors recommended he go to a rehab center in a nursing home, which Spera couldn’t afford given their limited income and her physical capabilities.

Spera had to quit her job at a nursing home to take care of John and eventually had to rely on part-time work to cover small expenses. To make ends meet, they had to dip into their retirement savings. After five months, she brought John home primarily due to financial reasons. However, they were still left with a $10,000 bill for his stay in the rehab center. The cost of staying in a nursing home in the US is significant, with a median cost of $9,034 per month for a private room, $7,908 per month for a semi-private room, and $4,500 per month for an assisted living facility.

These costs vary by state, and in Massachusetts, for example, the median cost for a private nursing home is $15,208 per month. The high costs of care are a challenge for many Americans, and over 83 percent of households with a retiree require some level of care. Of those households, 22 percent need minimal care, 38 percent have moderate needs, and 24 percent have severe care needs. Furthermore, half of the care hours for adults who require round-the-clock care are provided by family members.

One of the biggest obstacles faced by older Americans is the lack of retirement savings. Over two-fifths of baby boomers have no retirement savings, leaving them heavily reliant on social security income. Medicare, the federal health insurance policy for adults 65 and older, does not cover nursing home or assisted living facility stays. The average retired worker receives a monthly Social Security check of $1,782, which is often inadequate to cover long-term care costs.

To address the high costs of care, Angie Chen from the Center for Retirement Research at Boston College suggests setting aside a portion of retirement savings specifically for long-term care costs. However, most Americans struggle to save enough for retirement, making it unrealistic to expect them to set aside hundreds of thousands of dollars for potential long-term care expenses.

Instead, Chen believes that there should be more programs available to cover the costs of nursing home or assisted living expenses. Some states, like Washington, have implemented programs to address this issue. The Washington Cares payroll tax provides financial support for qualifying residents, but it may not be sufficient for those needing extensive around-the-clock care.

Ultimately, there is no perfect solution to the financial burden of long-term care. To support the growing aging population, it is crucial to offer more services and support to family caregivers. The John A. Hartford Foundation helped craft the 2022 National Strategy to Support Family Caregivers, which outlines ways to provide assistance to these caregivers.

In conclusion, the rising costs of caring for older adults have become a significant concern for American caregivers. The financial strain on families, coupled with the lack of retirement savings, makes it challenging to afford long-term care expenses. While there are efforts to address this issue, more solutions and support are needed to alleviate the burden on caregivers and ensure the well-being of older adults.

Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.