Nursing Home Costs Continue to Rise

America's elderly with special needs and theirwho have long-term care insurance.
loved ones have always paid a high price forMany of the bills contain similar provisions, including
long-term medical care. The emotional and financiala tax deduction for the amount spent on
toll of an extended stay in a care facility orlong-term care premiums. One provision even calls
nursing home can be extremely costly. A 2005for a $1,000 tax credit that will gradually increase
study by MetLife's Mature Market Instituteto $3,000 by 2009 for anyone who purchases
showed that the average cost for a privatelong term care insurance.
nursing home room increased 5.7% from 2004 toSeveral of the bills also ease the Medicaid rules
2005. That means in most states, it exceedsregarding long-term care benefits. In the new
$200 a day. Costs of in-home care weren'tversion of regulations, any benefits received from
spared either, increasing 5.5%.long term care insurance won't count against
Even with the increase in health care costs forMedicaid eligibility. The hope is that more citizens
the elderly, many consumers don't realize thewill be encouraged to get long-term care
benefits of long term care insurance. Someinsurance, which will lessen the burden on Medicaid
long-term policies cover not only skilled nursingand Medicare.
facilities but also in-home care and companionConsidering healthcare costs are rising, long-term
care.care insurance can potentially offer relief from
The House and Senate have begun to addressmany years of steep bills and debt. Appropriate
long-term care insurance in several bills aimed atcoverage depends on your financial situation and
making the insurance more affordable and moreyour retirement plan.
realistic. These efforts signal a growing concernWith all of the improvements and added features
by citizens, lawmakers and interest groups aboutof long-term care policies, more Americans may
the affordability and availability of long-term carebegin to take another look at this product. And
insurance in America.while long-term care insurance isn't for everyone,
The proposed legislation also reflects growingit may be a great addition to your retirement plan.
concern about rising healthcare costs and theirYou should always work with a financial
impact on Medicaid and Medicare. While it's unclearprofessional before purchasing the insurance.
whether the bills will make much progress, they'reLong-term care insurance may be worth
full of ideas from both Republicans and Democratsconsidering, as the cost of medical care doesn't
on how to increase the number of Americansseem to be slowing down any time soon.