By 2019, the Federal Government estimates that it will spend approximately half of the federal budget on seniors – mostly on Social Security and Medicare. To put that number into perspective, last year, the government spent approximately 40% of the budget on seniors, or $1.5 trillion. The 2029 number is closer to $2.7 trillion.
But will that even be enough?
Medicare provides crucial health coverage for senior citizens, but it will not cover the cost of long-term care. For example, if a senior citizen falls and breaks a hip, Medicare will pay for rehabilitation in a skilled nursing facility. However, if that same person simply cannot recover enough to leave the nursing facility, he or she will need to pay for the ongoing cost of care.
In its cost of care survey, Genworth estimates that the average cost of a semi-private room in a skilled nursing facility in the Dallas area to be $5,064/month. While we are fortunate that the cost of care locally is less expensive than the national average, a year in a skilled nursing facility will cost just under $71,000. That is still a hefty burden for many families.
The good news is that there are both financial products and legal strategies to help cover the cost of care. But families must be willing to plan ahead of time – before a healthcare emergency arises. Contact Balmos Law today to start developing your plan.
The CBO’s report is available at: https://www.cbo.gov/system/files?file=2019-01/54918-Outlook.pdf.
Genworth’s 2018 Cost of Care Survey is available at: https://www.genworth.com/aging-and-you/finances/cost-of-care.html.