According to the most recent data from the U.S. Census Bureau, there were 2,797,589 people in New York who were aged 65 and over in 2016 which is 14.6% of the state’s population. Compare that number to 2015, when 2,724,135 seniors lived in New York State (14.3% of the population), and 2014 (2,655,913 people ages 65 and over, 14.0% of the population).
While many people are living longer, their quality of life may deteriorate as they get older. As the aging population grows, more seniors may rely on home health aides, assisted living or nursing facilities to provide them with care. The costs for long-term care are likely to increase over time.
In 2017, the Genworth Cost of Care Survey reported that it cost $46,904 a year for a home health aide, $31,200 and $47,400 annually for adult day care and assisted living, respectively, and $132,000 to $142,000 a year for nursing home care in Queens County, New York. This year, costs are expected to go up. For example, the annual cost for a home health aide will be $48,311, adult day care would go up to $32,136 annually, assisted living ($48,822/year) and nursing home care ($136,000-$146,000/year).
The question is how will seniors pay for their care? If they waited until age 65 to obtain long-term care insurance, it might be cost prohibitive. According to the 2018 American Association for Long-Term Care Insurance (AALTCI), a single 65-year-old male would pay an annual premium of $2,460 and for a single 65-year-old woman, the cost would be $4,270 (the AALTCI says women pay higher premiums because they are at greater risk when it comes to requiring long-term care). A married couple both age 65 would have a combined premium of $4,675 per year (that includes the marital discount).
Assuming these policyholders cashed out their initial pool of benefits, they would receive $164,000 each. However, if they applied that money to pay for care privately, they would run out of money within one to two years.
Seniors who need long-term care often have difficulty paying for these services. The Queens elder law attorneys at Hobson-Williams, P.C. can assist you in preparing financial documents, securing Medicaid benefits to pay for medical assistance and assist establishing advance directives, such as power of attorney, healthcare proxies and living wills. The firm has also successfully represented clients at Medicaid Fair Hearings in getting home care services reinstated, split-shift home care services restored and surplus income eliminated. The legal professionals at Hobson-Williams P.C. will advise you on the options available to you, and help you establish a plan that best suits your needs. Call (718) 210-4744 to speak to one of our attorneys and learn how Hobson-Williams P.C. can help you gain the peace of mind that comes from being prepared for the future.
