October 14, 2013   Elder Care

The Rising Costs of Dementia Care

Studies reveal that the cost of dementia care is rising. Moreover, it is expected to double again by 2040. Comparatively, the cost of caring for an elderly citizen with dementia is similar to or higher than that of caring for an individual with heart disease or cancer. Making the situation worse, the number of individuals suffering from dementia will continue to grow over the coming years.
The RAND Corporation recently published a study indicating that the average annual cost to care for a single dementia patient is $41,000 to $56,000. Included in this cost is medical spending, family care, lost productivity, and long-term care. The largest portion of this cost is long-term care, which accounts for 84% of the total care costs for individual suffering with dementia. Alarmingly, this per-person rate is set to double within the next 30 years.
It is important to create a financial plan to provide for these costs. You may already have assets or policies – such as insurance, employee benefits, retirement benefits, and personal assets – that will assist you in providing for these costs. In addition to these assets and policies, you may also receive Medicare coverage. For individuals aged 65 and older, Medicare is the single largest source of health care coverage. However, some individuals require dementia care before reaching age 65.
Another solution may be long-term care insurance. This type of insurance provides payouts to assist with the cost of long-term care in a nursing home or other facility. However, if you did not purchase a long-term care insurance policy prior to your diagnosis, it may be difficult to secure. Moreover, if you are able to secure a policy later in your life, the premiums may be quite high.

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