Changing demographics
Part 4- Governor's letter: Long-Term Care
By KATHLEEN MCKEVITT

In the middle of January 2007, Georgia Governor Sonny Perdue sent a letter to millions of families whose members are between the ages of 45 and 65. (Letter printed on page 3A).

Governor Perdue is suggesting to people that the United States government's money will be unavailable to people for long-term care in their later years, and that now is the time to consider looking into and purchasing a plan to insure Georgians, at least, are covered. A "Long-Term Care Planning Tool Kit" is available for the asking. (See ordering instructions below.)

Starting in 2007/2008, 78 million "baby boomers" will start retiring, being eligible for social security benefits, and using up the dwindling Medicare, then Medicaid funds, none of which provides long-term care support. It will be up to individuals, even now, to insure themselves for the eventuality of needing such care.

The Health Insurance Association of America estimates that more than 13 million people in the United States will need long term care as a result of disabling or a lengthy medical or physical condition.

The State's kit literature tells Georgians that they probably can't rely on Medicare. On a nationwide basis, Medicare only covers about 11 percent of nursing home care costs, and 24 percent of home health costs. And, it pays only for post-hospital, short-term rehabilitative care and short nursing visits.*

Many people can't or don't want to have to rely on friends and relatives to take care of them,, and it is estimated that by the year 2030, the national annual cost of a semiprivate room in a nursing home will be $190,600 and home care costs will climb to $68,000.*

There are new laws in Georgia and other states that allow Medicaid the right to estate recovery, and, in a shocking addition to many, there is a further clause that can require individuals to tap any of their home equity in excess of $500,000 to pay for their own care. People can do this by selling the property, borrowing against the equity or using a reverse mortgage. (Kiplinger Letter, May 2006).

Nationally, according to Genworth Financial 2006 Cost of Care Survey, the average annual cost for a private room is $70,912, which is up significantly from 2003 surveys. Local people interviewed for this article declare that they are experiencing more like $80- 90,000 a year.

Nursing home stays average about three years, and again, according to Kiplinger's of May 2006, your total bill could top $600,000.

Here in north Georgia, expected growth is 4-5 percent - meaning an additional 20- 100,000 people in each of the Towns, Fannin, and Union counties in the next two decades, in each county. Most of these people are likely to be part of the retiring baby boomer generation. At the moment there are a total of seven assisted living/nursing home centers in the three counties, about enough to house an additional one-to-two thousand people, but nowhere near the facilities needed to house the numbers that will likely be required.

Ads on television looking at these facts show people in their mid-fifties, slightly younger and slightly older saying, "I'll be long gone by 2030 when government benefits run out. There's enough for me and my family." What most people don't know is that Medicare wasn't designed to adequately pay for home care, adult day care or assisted living care. It does pay for a portion of nursing home care, up to 100 days per benefit period, but only 20% of that is fully paid for. After the first 20 days of care, individuals will have to make up the remaining 80% for the remaining time.

Based on the Deficit Reduction Act of 2005, some reports like Kiplinger's, Indianapolis Business Journal and Genworth (General Electric's financial research firm), "you may not be able to count on the government at all."

More than 35 million Americans are 65 and older, and by 2011, just five years from now, that figure will more than double, to 77 million. An estimated five out of ten people will use a nursing home after reaching 65, and many more will need either home care or an assisted living facility.

Sonny Perdue's letter to Georgians in the age brackets of 45-65 suggests people order the Long-Term Care Planning Tool Kit, created by the U.S. Department of Health and Human Services. To do so, you can call: 1-866-PLAN-LTC (1-866-752-6582) log on to www.aoa.gov/ownyourfuture

If you got the letter from the Governor you also received a postage-paid reply card to order the kit.

Genworth is the Life Insurance Company listed on the literature. There are local companies in Union, Towns and Fannin counties that can provide this or comparable Long-Term-Care plans, and the earlier you start, the less it costs.

The changing demographics of Union county and most others in the United States will all begin soon to deal with this, and similar issues of an aging America. While local and State governments are looking closely at these challenges and making plans to be of assistance and support, it is becoming increasing clear that the day of large government systems taking care of the public are quickly shifting to the largest responsibility for self-care being the burden of the individual.

The next installments of this series, "The Changing Demographics", will cover medical, education, realty/ecology factors, and conclude with interviews of local people and how they are dealing with the changes in their lives.