Yet, the current system is falling apart. Medicaid, which funds almost half of all paid long-term care, is under immense financial pressure. Few Americans have saved for their long- term-care needs in old age — half of retirees have less than $55,000 in financial assets, barely enough to pay for nine months in a nursing home, or two years of limited daily help from a home health aide. And hardly anyone buys private long- term-care insurance — only 7 million Americans own policies.
Despite the death of CLASS, the challenge of long-term care financing is not going away. So, how can we fix a badly broken system?
The best way is probably through universal long-term care insurance. Every major developed country on the planet — except for the U.S. and the U.K. — has already gone this route. Here, insurance could be offered by the government, or by private carriers in a regulated national marketplace (much like the Medicare Part D drug benefit or Medicare Advantage managed-care plans).
Utter nonsense. Here we are with another “plan” to simply play ponzi for a few more years.
Health care has expanded in cost at an average of 7.9% from 1990 through 2010 for individual “coverage.” Family coverage has expanded at 8.2%.
This is what you’re trying to “provide”, assuming the “young person” buys at age 25 and continues through age 65, a period of 40 years. We will assume that the care today costs $4,000/month, which is well under the average actual cost, or $48,000/year. In short I’m being “polite” about the numbers, giving you the maximum benefit of the doubt.
To Bloomberg: Would you please stop publishing utter and complete crap under the rubric of “opinion”, when said “opinion” is an argument for that which is mathematically impossible?
Alternatively you can explain how we’re going to pay (through any mechanism) $931,274 annually for each insured person 40 years hence to cover this “long-term care.”
The claims of “solutions” that are in fact the incessant selling of Ponzi Schemes must end right now.
Further, any government or private party setting up, maintaining or promoting such a scheme must face immediate prosecution as Ponzi schemes are illegal under existing law.