As Medicaid lawyers, we work with a lot of people who are members of the sandwich generation. This is a term that describes middle-aged individuals who are faced with the prospect of caring for their aging parents while they simultaneously continue to raise their children.
The baby boomers are now reaching retirement age, with about 10,000 people applying for Social Security every day. According to the United States Department of Health and Human Services, the majority of people who reach the age of 65 will someday require help with their activities of daily living. This phenomenon is fueling the growth of the Sandwich Generation, and we assist clients who are looking for solutions.
With regard to living assistance, many seniors can receive the help that they need from family members and friends. However, a significant percentage of them will ultimately reside full time in assisted living communities or nursing homes. Many people are surprised to hear that Medicare does not pay for long-term care. Paying out of pocket is obviously a possibility, but to do so, you need very deep pockets.
The Genworth Cost of Care Survey that has been released annually for a number of years is a very solid source of information that sheds light on the state of long-term care costs. According to the survey, in 2017, the median monthly charge for a private, one bedroom unit in an assisted living community in the United States was $3750. If you multiply that figure by the 12 months in a year, you are looking at $45,000. The median annual charge for a private room in a nursing home was over $97,000 last year.
We are Mount Clemens, Michigan Medicaid lawyers. The Genworth survey drills down to the state and city levels as well as the national level. For a private room in a nursing home in the Detroit area, you are looking at a median monthly charge of $8669. This factors out to $104,025 a year.
Members of the sandwich generation often have to work with their parents to prepare for these expenses. Medicaid is a government program that does pay for long-term care, but there is a low asset limit, so it takes careful advance planning to obtain eligibility at the right time. All of this is naturally going to cross over into the realm of estate planning, and the totality of the situation can be very complex. This is why it is wise to develop a plan with the assistance of a licensed elder law attorney.
Understanding Alzheimer’s Disease
We shared some rather compelling statistics about nursing home costs, and many people who ultimately reside in these facilities have contacted Alzheimer’s disease. The Alzheimer’s Association does a lot of great work educating the public about this threat to our nation’s elderly. They state that about 10 percent of all people who are 65 years of age or older are Alzheimer’s sufferers. The figure rises to somewhere in the vicinity of 40 percent for people over the age of 80.
The life expectancy for a man who is 65 today is 84 years, and for a woman, it is nearly 87. Plus, it is important to understand the fact that this is a rapidly expanding demographic subset. According to the United States Census Bureau, the segment of the population that was between 85 and 94 years old grew faster than any other between the years 2000 and 2010.
When you put these numbers together, you can see that Alzheimer’s disease is a potential threat to all senior citizens.
Schedule a Consultation With One of Our Medicaid Lawyers!
Long-term care is one important consideration for members of the sandwich generation that are caring for their parents, but there are other financial issues to address. In addition to our work as Medicaid lawyers, we also have a great deal of expertise when it comes to retirement planning and financial planning in general.
We would be more than glad to sit down with you, gain understanding of your situation and your goals, and help you devise a plan for the future. If you would like to schedule a consultation, we can be reached by phone at 586-493-7661.