Long Term Care Represents ‘Real Financial Problem,’ Rovner Writes in CongressDaily/A.M.

Long term care is the "elephant in the living room that no one's talking about," Julie Rovner writes in her "Health Matters" column in CongressDaily/A.M., quoting Rep. Earl Pomeroy (D-N.D.). Compared to $6,000 per year spent by people with high prescription drug costs, the $55,000 per year cost of seniors' nursing home care will present a "real financial problem" for 76 million baby boomers, Rovner says. She notes that the number of seniors is expected to rise by one-third by 2020, and the number of elderly people needing long term care may rise by as much as 75% over the next 40 years. Unlike for other health costs, individuals and families bear much of the "burden" of long term care, Rovner writes. Medicaid is the "largest" payer of long term care costs, covering 44%, but out-of-pocket costs, at 25%, constitute the next-largest contributor. Medicare accounts for 14% of the bill and private long term insurance accounts for the remaining 10%. But more "frightening" is the fact that much long term care -- nearly 60% -- is provided free of charge by family members. However, for "the first time in a decade," long term care sits "squarely" on Congress' legislative agenda, Rovner notes. Such legislation includes tax deductions that would encourage people to purchase private long term care insurance and offset up to $3,000 in a family caregiver's costs. But Rovner concludes that "it seems clear that while legislators may finally be recognizing the elephant is in the room, no one is yet suggesting how to get it outside where it belongs" (Rovner, CongressDaily/A.M., 4/5).