{"id":83516,"date":"2025-08-15T00:59:12","date_gmt":"2025-08-15T00:59:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/83516\/"},"modified":"2025-08-15T00:59:12","modified_gmt":"2025-08-15T00:59:12","slug":"reports-caution-about-lack-of-knowledge-preparedness-for-long-term-care-costs","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/83516\/","title":{"rendered":"Reports Caution about Lack of Knowledge, Preparedness for Long-Term Care Costs"},"content":{"rendered":"

\t\t\"\"
\n\t\t\t\tWhile many have estimated potential long-term care costs, \u201cmany underestimated the cost.”\t\t\t\t Image: CI Photos\/Shutterstock.com
\n\t\t\t\tBy: FEDweek Staff<\/a><\/p>\n

A pair of reports has cautioned about widespread lack of knowledge and preparedness for long-term care, with the result of under-estimating both to chances of needing such care and what it will cost.<\/p>\n

\u201cAbout 80 percent of retirees will require some LTC, with a quarter requiring high-intensity care for more than two years,\u201d says a report from the Center for Retirement Research at Boston College, and \u201cvery little of this care is covered by insurance \u2013 only about 4 percent.\u201d<\/p>\n

\u201cThe lack of insurance for formal care is troubling, given that the cost of care is extremely high: the average cost of a semi-private room in a nursing home in the United States is over $100,000 per year, as of 2023,\u201d it says.<\/p>\n

Because of that high cost, an arising need for long-term care has a larger impact than other health-related cost shocks, such as a medical condition that substantially increases out of pocket costs for that type of care. In a review of past studies, it said that medical cost shocks \u201cseem to be borne by individuals without severely impacting their retirement trajectories\u201d while \u201cLTC shocks lead to drawdown of home equity; reduction in bequest expectations; and, above all, increased reliance on Medicaid.\u201d<\/p>\n

\u201cHowever, Medicaid eligibility requires the household to be impoverished. Thus, Medicaid is a safety net, but not an effective form of insurance, since its deductible is virtually the entirety of a household\u2019s assets,\u201d it adds.<\/p>\n

The other report, based on a survey conducted by the Employee Benefit Research Institute said that only four in 10 workers believe they will ever need long-term care\u2014half of the number who actually will\u2014with rest split between those who are unsure and those who say they are sure they will not need it. \u201cWorkers with personal experience receiving care, with a disability, or who have filed a short-term disability claim are significantly more likely to believe they will need LTC in the future,\u201d it said.<\/p>\n

In contrast, six-tenths said they have provided or are currently are providing some care to aging parents or others and 73 percent said they have someone in the family who they expect will need such care. \u201cThese future caregivers are uncertain about the duration, cost and funding sources for care, with many mistakenly believing Medicare will cover a large share of long-term care expenses,\u201d a summary said.<\/p>\n

Other findings included that of those who have estimated potential long-term care costs, \u201cmany underestimated the cost,\u201d with the most common estimate of $50,000 a year\u2014again about half of the actual figure. More than four-tenths said they thought Medicare would cover the costs \u00a0nearly a third said they expected Medicare would cover the costs.<\/p>\n

It added that \u201ceven among those anticipating LTC needs, enrollment remains low\u201d in employer-offered long-term care insurance programs. New enrollments have been suspended since late 2022 in the Federal Long-Term Care Insurance Program for federal employees and retirees, a suspension that is to continue at least until late 2026.<\/p>\n

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\u2018Only High Performers\u2019 Should Receive Awards, Agencies Told<\/a><\/p>\n

What to Know About the New Federal Application Process<\/a><\/p>\n

COVID Vaccination Data to Be Deleted from Federal Personnel Records<\/a><\/p>\n

Numbers, Impact of Federal Job Cuts Draw Increasing Scrutiny<\/a><\/p>\n

OPM Limits Length of Paid Leave in Reorgs\u2014Starting Next Year<\/a><\/p>\n

See also<\/p>\n

The Gift of Annual Leave for Federal Employees<\/a><\/p>\n

Alternative Federal Retirement Options; With Chart<\/a><\/p>\n

Primer: Early out, buyout, reduction in force (RIF)<\/a><\/p>\n

Retention Standing, \u2018Bump and Retreat\u2019 and More: Report Outlines RIF Process<\/a><\/p>\n

Deferred and Postponed Annuities Under CSRS and FERS<\/a><\/p>\n

FERS Retirement Guide 2025<\/a><\/p><\/p>\n","protected":false},"excerpt":{"rendered":"While many have estimated potential long-term care costs, \u201cmany underestimated the cost.” Image: CI Photos\/Shutterstock.com By: FEDweek Staff…\n","protected":false},"author":2,"featured_media":83517,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[28,147,530],"class_list":["post-83516","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-personal-finance","tag-personalfinance"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/83516","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=83516"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/83516\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/83517"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=83516"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=83516"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=83516"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}