Baby Boomers & the Health Care Bill
May
20
Written by:
5/20/2010 8:51 AM
WITH A LOOMING HEALTH CARE CRISIS, WHAT’S A BOOMER TO DO OR NOT TO DO
“TO DO LIST”
After World War II, we along with the rest of the world entered a time of economic growth, scientific advancement, industrial revolutions and we welcomed a new and large population of our most important product. Babies!! And more babies! The war was over, and good had vanquished evil. Soldiers, heroes were returning home to a nation and a world that sorely missed them. The result was what is now referred to as the “baby boom” or the “boomer generation”. As a result, 50 years later, Americans as well as the rest of the world will witness a societal transformation of unprecedented size and scope. Most of them (the Boomers) will reach 65 as early as 2011. How does this generation prepare for what is already occurring? They are growing older. How do they face and prepare for this time? What challenges will be the most daunting and significant? Probably none more critical then health care. There is no question more disturbing then how do we deal with our elderly. The news flash is that the boomers are our (new) elderly. Thanks to medical science we live longer. Much longer! While that is a good thing it brings with it other and more troubling problems.
How do they (we) prepare for this time? What choices can we make now that can make this journey smoother? Hopefully, you have “something” set aside for retirement. Probably whatever that amount is it will be insufficient for a trouble free retirement, but every little bit helps. There are government programs that have been put in place as a safety net, but they are being eroded on a yearly basis.
So, what can you and should you be doing. As simple and ridiculous as it may sound, The first line of defense is to stay as healthy as possible for as long as possible. Good nutrition, exercise, and going to the doctor before a problem becomes serious will go a long way toward keeping you as healthy as possible for as long as possible. Obviously, personal choices such as smoking, drinking and over-eating play a role in your future.
Regardless of how careful you are accidents and chronic illness requiring some sort of long-term care will occur and can devastate even the most prudent retirement budget. According to the American Health Care Association, two out of every five Americans will need nursing home care at some point in their lives; other studies place the percentage far higher. The current average cost of $190 per day, can and will devastate any family on a sustained basis. This figure will only rise on a yearly basis. Moreover, most long-term care is not covered by Medicare or private supplementary insurance. Medi-Cal long-term care programs are in place and should remain in place, but are under attack on a daily basis by the long-term care insurance industry.
Now that we have identified the problem, let’s talk about some solutions, other then taking care of yourself and your family.
What you should do!
- Obviously, you need good health insurance so that when you get sick you have access to the best possible care. The most common alternative is Medicare, with supplemental private insurance to cover the expenses not covered by Medicare. Recently the New Health Care Bill was passed and is touted as the new panacea for our senior citizens. You need to be an informed and vocal consumer. Can you have any in-put in your health care plan? You can! Become informed. Talk with physicians and other health care professionals. They like all of us speak in their own lexicon. If you do not understand what they are prescribing or suggesting, do not leave until you understand their recommendation. You are entitled to a second opinion.
- You need to be the watch dog of your own medical bills. Check your bills for overcharges or incorrectly denied payments. Insurance companies are notorious for both double billing and automatic denials. If the
Explanation doesn't make sense, keep asking, and appeal if you must.
- You need to be prudent. You'll want to make sure you've set aside sufficient funds for unexpected costs. While in the world of the “boomers” or “sandwich generation”, this is not as easy as it sounds, it is still very important to have a buffer for at least a few months to avoid a disaster. If you have some liquid cash on hand you will not face liquidating accounts that will incur penalties.
- You need to check on a yearly basis on your insurance coverage. Check all of your insurance coverage. What you needed at 30 years of age may be very different than what you need at 65 or above. Life insurance which was so important to protect a growing family, may not be as important as increasing your home insurance. If you purchased your home 30 to 40 years ago, it is probably far more valuable now. What is the replacement value? Insure for that amount!
· Prepare for incapacity!
Prepare both Financial and health Powers of attorney. None of us want to consider the possibility that one day we will not be able to speak for ourselves or make our own decisions. Unfortunately, it will most likely occur in half of our newly emerging elderly population. Take the time to have Health and financial powers of attorney prepared now, while you are competent. The power of attorney is used for situations where the principal (You) can’t be present but trusts his agent (that’s whoever you choose and trust to act on your behalf) to do the job for you. So, you authorize your agent ahead of time to act in your place. Be sure to have a Durable Power of Attorney for Health Care and Finance prepared. This endures although the principal is incompetent. Powers of attorney are very important when it comes to the elderly. If you do not have powers of attorney in place and you do become ill and unable to take care of your own matters the questions is who legally can act for you? The answer is not a good one. Without a proper power of attorney the only remedy may very well be a conservatorship. But conservatorship is a lengthy, expensive, court procedure. Make your choices while you are able.
For further information, Nursing Home Solutions care be reached at 800 773 6467.