Finding Affordable Long-Term Care: A Challenge for Many Americans
As a historic wave of baby boomers reaches retirement age, finding affordable long-term care is a challenge many Americans face.
The Reality of Long-Term Care
According to Rep. Tom Suozzi, D-New York, "We’re going to have a major storm coming in our country with all these folks that can’t take care of themselves." Suozzi’s experience with his grandparents, who lived with his family and were cared for by his parents, has inspired his efforts to address the issue. However, many Americans are unable to afford long-term care insurance, which has become unaffordable due to insurance companies’ losses.
The Need for a Solution
Suozzi plans to reintroduce the Well-Being Insurance for Seniors to be at Home, or WISH, Act, which aims to create a federal program to help families cope with the costs of long-term care. The proposal calls for the federal government to create a fund for catastrophic long-term care to help older Americans age at home.
The WISH Act
The WISH Act would provide long-term care benefits to individuals who have reached retirement age and who are disabled, have severe cognitive impairment, or are unable to perform at least two activities of daily living. Americans would contribute to the program through a payroll tax, similar to Social Security and Medicare. The amount of benefits received would be around $3,600 to $4,000 per month, based on the median cost paid for personal assistance for six hours per day.
Challenges Ahead
While the proposal has merit, it may face hurdles in gaining support. As Suozzi noted, "The challenge is nobody wants to raise taxes for anything." The proposal may be a "tough sell" to tell people that there’s a mandatory tax for long-term care, particularly since not everyone will need those benefits.
Conclusion
Finding affordable long-term care is a significant challenge for many Americans. The WISH Act offers a potential solution, but it will require a concerted effort from government, private industry, employers, and family caregivers to address the costs associated with long-term care.
FAQs
Q: What is the WISH Act?
A: The Well-Being Insurance for Seniors to be at Home, or WISH, Act is a proposal to create a federal program to help families cope with the costs of long-term care.
Q: Who would be eligible for the WISH Act?
A: Individuals who have reached retirement age and who are disabled, have severe cognitive impairment, or are unable to perform at least two activities of daily living would be eligible.
Q: How would the WISH Act be funded?
A: Americans would contribute to the program through a payroll tax, similar to Social Security and Medicare.
Q: Why is long-term care insurance unaffordable for many Americans?
A: Insurance companies lost money on long-term care insurance due to people living longer than expected, making the policies unaffordable for many.
