As baby boomers enter their golden years, more will require additional care. Some may be able to stay at home with help from family or hired caregivers. Others will need to move into long-term care facilities, such as nursing homes, to receive the support they need. This shift brings significant financial challenges and concerns about the quality of care.
Health and Safety Concerns
According to a February 28, 2022 statement from The White House, private equity firms have been buying up struggling nursing homes, often resulting in a decline in resident care. Investments from private equity firms jumped from $5 billion in 2000 to over $100 billion by 2018.
Research shows that residents in these facilities face worse outcomes:
-
11.1% more likely to have preventable emergency room visits
-
8.7% more likely to experience preventable hospitalizations
-
30% higher COVID-19 infection rates
-
40% higher death rates than statewide averages
In response, the Biden-Harris Administration directed the Department of Health & Human Services (HHS) and the Centers for Medicare & Medicaid Services (CMS) to improve nursing home quality and safety. CMS initiatives include:
-
Setting minimum staffing requirements
-
Reducing room crowding
-
Strengthening safeguards against unnecessary medications and treatments
The Rising Cost of Care
Baby boomers will begin turning 80 in 2025, dramatically increasing the demand for long-term care. CMS projects that the number of people needing long-term care will double by 2050.
The financial burden is significant. Genworth’s 2019 survey found that a private room in a nursing home costs about $102,000 per year. Yet, the Insured Retirement Institute reports that 45% of baby boomers have no retirement savings, and over a quarter of those who do have less than $100,000 saved.
These statistics reveal why so much care falls to family members, often spouses or adult children. Eventually, though, many families face a point where professional care becomes necessary.
Paying for Long-Term Care
Once professional care is needed—whether at home or in a facility—costs can rise sharply. Planning ahead is the best way to reduce stress and protect assets for your loved ones.
An experienced estate planning or elder law attorney can help you:
-
Explore options for funding care
-
Preserve assets for heirs
-
Navigate Medicaid and other benefit programs
-
Plan for future medical and financial decision-making
Preparing early can make all the difference. Call us at (207) 848-5600 or visit our CONTACT page to begin planning for long-term care.
