Where will you be living circa 2040 or 2050? 
 
Okay, so if you’re a born-again believer, you’re probably gleefully envisioning heaven or are at least adding “if the Lord tarries” to the question. And if you’re not, and you’re over 40, you may be counting on moving in with your children or enjoying a living arrangement like the Golden Girls’ of 1980s TV fame.  
 
But just say none of these alternatives pans out, and you find yourself unable to live on your own. Will a decent nursing home be an option for you? 
 
The truth is that only God knows for sure. If our economy crashes and the Huns 
overrun our country, all bets are off. But let’s keep playing make believe and pretend that America’s still the Beautiful and we still have some viable financial resources to work with. What’s likely to be available?

It turns out to be a disturbing question.

On the one hand, the demand for nursing-home care is expected to more than double by 2050, according to a study by JAMA and the Kaiser Foundation. 
 
On the other hand, the supply looks like it’s destined to dwindle. A long-term-care insurance expert in Green Bay, Wisconsin, points out that a third of U.S. nursing homes are already, at best, showing no profit. The rest are losing money, thanks to dwindling Medicaid and Medicare reimbursement rates. 
 
And don’t count on the government. County-owned nursing homes across the country are already losing money, with many struggling to survive and some already closing their doors. 

What will happen when we're ready for these services?

As one columnist put it several years ago, the question is "literally schools versus nursing homes." 
 
Who do you suppose will win in this contest? Will the "elderly problem" ultimately move the U.S. ten steps closer to being "just like Europe"? 

​The costs of Long Term Care (LTC) continue to climb across the U.S. If you’re one of the millions of Americans who are likely to need it before this life is over, now would be a good time to determine how you are going to pay for it.
 
Genworth Financial provides a handy tool for evaluating the cost of LTC in your area. If this is the first time you’ve looked into it, you’ll find the numbers pretty frightening; and even if you checked it out in the past, you may be shocked by the latest figures.  
 
For example, in 2017, the average nursing-home charge in the Milwaukee area was nearly $111,000 for a semi-private room, and more than $132,000 for a private room. And these costs are currently rising by 2% and 4% per year, respectively.
 
Think it won't affect you? Think again: According to the Family Caregiver Alliance, “The lifetime probability of becoming disabled in at least two activities of daily living or of being cognitively impaired is 68% for people age 65 and older.” That means there’s a good chance most of us will need some level of LTC assistance.
 
Nevertheless, relatively few have given much thought to how they'd pay for it.

Of those who have considered the possibility, some plan to cover it with their own funds – a great plan for those with millions in the bank. 

Others figure that the government will take care of them. But that sort of help begins only after you’ve depleted almost all your own resources. And then there’s the issue of finding a bed set aside for what is, for the providers, a losing proposition; I know people who have been in desperate search of government-sponsored LTC beds. And we baby boomers haven’t even begun to be a factor in the rationing that’s sure to come.

Still others purchase private LTC insurance policies. They’re not cheap, but for those of us of modest means, it may be the only solution that makes sense. 
 
If you have any concerns about how you’ll survive your golden years financially, I hope you'll take a serious look at the alternatives sooner rather than later. 

Here’s another wonderful message from Chris Carrillo, delivered on New Year’s Eve day at Care-age of Brookfield. Examining the gifts of the magi, he explains how those who have yet to receive the greatest gift of all can make this the most meaningful Christmas ever.

(If you’re reading this via email, please click on the title above to be taken to the audio recording.)

Want to hear more of these five-star Care-age messages? Visit our Chris Carrillo page!