The Coming Long-Term Care Crisis - And What To Do About It

Life is getting longer, but that doesn't mean it's getting better...

The longer we live, the more susceptible we are to diseases such as prostate cancer, Alzheimer's disease, and other forms of dementia.  Such diseases were uncommon years ago because few people lived long enough to get them.  Today, dementia is the most common illness amoung those receiving long-term care.

If our life span continues to increase, what will be in store for us as we age?  Whatever the answer, it's likely that it will add to the growing long-term demand for long-term healthcare.  And as demand grows, so will cost.

Already, the average annual cost for a private room in a nursing home is $74, 095 a year according to MetLife Mature Market Institute.  Home healthcare can be even more expensinve, especially if 24-hour care is needed, Kiplinger found (May 2006).

Yet costs are likely to escalate as America's 77 million baby boomers retire.  The number of people needing long-term care will increase as the retired population increases and the average long-term care stay could also increase as people live longer.

This increase in demand will not necessarily be matched by an increase in supply.  Regulations governing the industry are complex and expensive to comply with and, while Medicaid currently pays for care for many patients, it does not pay enough to cover the cost of care.  In addition, labor shortages could make it difficult to hire nurses and aides to provide care at home.

That is why the Building Congress & Exchange is pleased to announce the availability of John Hancock's Long Term Care Insurance Program to our members and their employees.  This program is available to you, your spouses, parents, parents-in-law, children (including adopted and foster), and step-children between the ages of 18 - 84.

Just as planning ahead for retirement is important, taking steps to protect your financial security is also important.  Younger adults can also be faced with the need for extended care due to an accident or illness.  Most company provided medical benefits do not cover long-term care expenses and disability benefits are intended to cover only loss of income.  These expenses can be quite expensive and financially draining.  Proper planning is prudent.

To help you, the Building Congress & Exchange has chosen John Hancock Life Insurance Company as our long-term care insurance carrier.  With John Hancock, you'll have one of the country's largest and most respected providers of insurance and investment products and services working for you.

For more information, contact the Building Congress & Exchange Administrators at 410.823.7200.