Long Term Care Financing in New York


New York long term care costs can be attributed to the massive population increase in the state’s nursing facilities.  While most Americans try their best to cling to in-home care, nursing home care is common in New York due to the high incidence of chronic diseases among elderly people.

At present, 2.6 million or 13.5% of New York’s total population is made up of senior citizens who are 65 years old and over according to the U.S. Census.  Meanwhile, demographers added that a bigger portion of the senior population lives in poverty and so Medicaid accounts for a larger share of the state’s total long term care (LTC) expenditures.

New York nursing homes charge a daily rate of $337, on average, or a whopping $123,005 annually.  If only 10% of the state’s senior population has long term care insurance (LTCI) policies, there is much likelihood of Medicaid covering about 2.4 million Americans who will require nursing home care.

The Medicaid program of New York, however, does not only provide LTC coverage to the poorest in society because it has many clients from the middle class, too.  You’ll usually find members of the middle class in lucrative jobs or operating small businesses so it is quite puzzling what got them to end up under Medicaid’s wing.

According to LTC studies, majority of these middle-class New Yorkers who turned to Medicaid used up their nest eggs  to satisfy the health care requirements of their parents.  They were in perfect health at the time so they had no inkling they will wind up needing care, too.

To avoid the same fate, younger New Yorkers should start working on their LTC plans because nothing is certain about the future.


Emerging from New York Long Term Care Costs

Perhaps thinking about the cost of care in New York makes you wonder if there is anyone at all who can come out of it unharmed.  The truth is, New York’s LTC costs will not only hurt the person who will require care but his whole family as he will eventually turn to them for assistance with his activities of daily living (ADL) plus he is likely to depend on them financially.

However, early planning can spare one and his family from the pains of LTC costs.  The fact of the matter is, all New Yorkers who are presently earning hefty paychecks are discouraged from considering Medicaid for their future health care needs.  Leave this health insurance program to the poor as they have no means of securing LTCI coverage.

Those individuals who are capable of bringing home an annual income of $75,000 or more should start looking into their LTCI policy options because it is only through this type of insurance coverage that they will be able to protect their families from possible impoverishment.

Home health aides will not have an hourly rate of $22 forever.  Assisted living facilities that currently charge $3,700 can charge double this amount in a few years’ time.  Family members grow old and get sick, too.  To state it directly, everyone’s LTC needs should be his own responsibility so plan yours today or brave prohibitive New York long term care costs if you can.





  • http://www.nyspltc.org/benefits.htm

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