Aud Lang Syne - Planning ahead for LTC Makes Sense

We sing this – about “the olden days” – on New Years’ Eve.

However, in the world of long term care planning, honestly, there’s not too much to reminisce about.   The more things change, the more they stay the same.

Here’s the way I see it. 

Old people need care.  Sometimes extensive care (not to mention expensive care). 

Unfortunately, either through denial or ignorance, few want to admit to this fact.  They also don’t want to pay for the care…especially not in advance.

So, as the saying goes, Houston, we have a problem!

For decades, there has been lots of talk that a government solution will fix the problem.  You know, “The problem is so great for so many aging Americans, the government will have to do something!”  

Proposals have included government funding of home care, or bigger incentives to purchase long term care insurance.  A tax deduction was floated for years, but never got anywhere. 

Currently, proposed federal legislation (Build Back Better Act) contains funding for long term care. The proposed legislation – as of December 20 - includes nearly $150 billion to reduce waiting lists for in-home care services, improve pay for home care professionals, and improve infection-control in facilities. 

The fate of the bill – and its LTC funding – is considered precarious.

On a state level, some attempt to chip away at the problem.  The latest is a Washington state payroll tax designed to fund a modest long term care benefit after employees first pay in for several years.  The program is problematic for many reasons, and some experts say it’s doomed to fail.  Many thousands of healthy, insurable employees scrambled to purchase private insurance to opt out of the mandatory plan.

Medical advances keep us alive longer.  Though we may live longer, those years will not necessarily be healthy and active.  They may be the very years we need long term care.

SO, do you share the sentiment that old people are very likely to need help (dressing, bathing, etc.) at some point, and that the care is expensive?

AND, have you stopped believing that the government will save the day and provide a long term care benefit you desire?

Congratulations!  I urge you to join what other clear-eyed planners have done, and to purchase a long term care insurance policy.

Back to the song.

“We'll take a cup o' kindness yet.  For auld lang syne.”

At the risk of sounding corny, procuring a long term care insurance policy today might pave the way for many cups o’ kindness (and care) when your future self is in need.