The repercussions of ageing population across US and other countries on health care expenditures is overwhelming since the elderly persons use health care services at a greater rate than the younger population…
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The expense of providing healthcare services is spraining government and family budgets, as costs soar due to rising pharmaceutical drug prices, provider services and inflation. Apart from ageing population, factors such as higher incidence rate of chronic diseases, rise of long term care diseases such as Alzheimer’s and Parkinson’s, also add to the strain on long term care demand. Long-term care involves a wide range of services for people who require caregiving support on a routine basis owing to chronic illness or physical or mental disabilities. Contrasting other health services, long-term care is not usually planned to treat an illness or condition. Although it can involve skilled caregiving by professional nurses, it largely consists of assistance with fundamental activities of daily living (such as bathing, eating, dressing, and using the toilet) and with activities obligatory for independent living (such as shopping, cooking, and housework).
Since 2004, long term care overheads have increased 4.7%-6.6% per year resulting in an overall rise of 31-47%, based upon the type of care. Long-term care costs hence signify one of the greatest uninsured financial risks facing the aged and most vulnerable population in the United States. In 2004, long term care expenses represented 8.5% of the overall healthcare expenditure amounting to $135 billion and 1.2% of GDP.
This write-up focuses its attention towards hedging that financial risk with the use of long-term care insurance. It describes the definition and importance of long-term care insurance, customer profiles and behaviors of long-term care insurance and its precedence in the United States with respect to other countries.
What is Long Term Care Insurance? Why is it so important? Long-term care insurance is an insurance product that underwrites individuals requiring long-term care due to old age, injury or chronic illness. Even though most people consider long-term care insurance with only elderly care, there are over five million working age adults and 400,000 children that require perennial support with the daily living activities cleaning, dressing, eating, moving, and continence, and if the patient requires a need for such assistance with any of the above routine activities, or a cognitive mutilation, he or she is entitled to obtain long term care insurance benefits. The kinds of care that long-term care insurance incorporates are support with the tasks of daily living, home nursing, 24-hour skilled attention, and transitional and supervisory care (Consilium, 2011). Most insurance plans also reimburse expenses for alternative care conveniences such as assisted living, and for hospital care. There are guidelines that are for nursing homes, home care and inpatient hospital care. The long-term care insurance policy lays out how much it will re-compensate depending on the level of care required. Furthermore, each insurance plan is devised to fit discrete needs and finances, thus each individual can choose exactly how much and what type of coverage he or she wants. Upon the selection of Long-term care insurance plan, the insurance holder decides upon the plan structure and benefits that he or she wants to receive. These benefits include: Daily benefit level: The insurance holder has the liberty of selecting the daily benefit he or she wants to receive from a range of daily benefits available to pay for nursing home care. These benefits can also be
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The types of insurances that provide such protection against disabilities and accidents are many. Also the high costs of health care has become a hot topic nationwide where every TV channel loves to provide their broadcast on the crisis upon the healthcare system in USA.
They are cheaper than individual long term insurance. They may be offered by employers and are tax-free to employees and tax deductible for employers who bear the premium expenses. Group long term insurance care started in the 1980s. Long term insurance cover to individuals was characterized by high premiums and limited benefits therefore many companies had to think of group long term insurance as an employee benefit (Wiener and Illston 66).
The baby boomers are expected to keep that growth cycle going, most likely at faster rate, which is expanding the demand for services and is also heightening the expectations from service providers (Study Notes, p. 2). From the economists and the business perspectives, when the demand increases, the supply will also increase to meet the increasing demand.
Although long-term care is not limited to the elderly, as long-term care is also needed by anyone who need assistance in every day living as a consequence of disability regardless of age - disability happens more often in those who are older, specifically if they reach the age of 65 and up (Johnson, Toohey and Wiener 1).
Therefore, there are 14 years remaining for the youngest child to turn 25 when it is estimated that Karen will be independent after having completed full-time education at the university. Education expenses of both Mike and Karen will have to be borne until they reach the age of 25.
The Health Care & Welfare complex elements that make up a single business model for the Health Care and Social Services of the aged in Japan and Korea will also be discussed in this paper. Management environment for medical facilities greatly changed with adjustments in the population structure and the social environment.
The author states that the expense of providing healthcare services is spraining government and family budgets, as costs soar due to rising pharmaceutical drug prices, provider services and inflation. Long-term care involves a wide range of services for people who require caregiving support on a routine basis.
Long Term Care insurance policies help many individuals to receive the expensive nursing homes and assisted living facilities. Long term insurance solves one of the biggest fears of Americans to spend all their life savings on expensive nursing costs and medical bills. Insurance is a way through which Americans can cover their expenses.