Latest news with #CareScout
Yahoo
26-07-2025
- Health
- Yahoo
4 Things Soon-To-Be Retired Boomers Need To Know About Long-Term Care
It can be an extremely upsetting situation when a family member needs long-term care. As reported by the Wall Street Journal, demand and costs for care are rising as concerns grow over staffing for the industry. Read More: Find Out: If you're a soon-to-be retired boomer, there are some key things you need to know about possibly requiring help with living needs in your later years. Long-Term Care Can Be a Life-Changing Experience According to Rhonda Vry-Bills, CLTC, from Long Term Care Strategies, 'I wish more people would understand or treat an extended care event as a life-changing income event and not a one-time deductible.' Per Vry-Bills, if you need long-term care and it costs around $13,000 per month for an undetermined length of time, it may be a struggle to pay for that out of your retirement income. Per CareScout, the cost of assisted living communities, nursing home care, and homemaker services all rose around 10% in 2024, while the cost of aides for home health care rose about 3%. Discover Next: You May Be Surprised Who Needs Long-Term Care Don't just expect other retirees to need long-term care. Here's a look at the risk for people aged 65 and older from the Center for Retirement Research at Boston College: About 20% of retirees will need no long-term care support. Around 20% of retirees are likely to have a severe need. An estimated 25% will have low needs. Approximately 37% will have moderate needs. You May Be Thinking Incorrectly About Who Pays As reported by the New York Times, there's widespread confusion over what Medicare and Medicaid cover and pay for when it comes to long-term care. In general, Medicare covers up to 100 days after a hospitalization for a stay in a skilled nursing facility. Medicaid covers long-term care services for people with low income and assets. 'No one wants to dip into their 401K to pay their cell phone bill and certainly not to pay for a bill for extended care,' Vry-Bills said. 'When retirees do not have the monthly income to pay for home care or facility care, they have no other choice to go to their portfolio.' Vry-Bills added another important consideration is taxes. You may face unexpected taxes when you take out money you intended for retirement purposes to cover long-term care. You Need To Think About Others Stop and think for a moment about who'd be impacted if you needed long-term care. 'When one partner or spouse needs care, their income goes to pay their bill, leaving the community spouse to pay for all of the household expenses and only one income to pay it,' Vry-Bills said. 'Meanwhile, the spouse needing care is invading the portfolio, which is creating taxes, and reducing the overall value of the account, which is designed to generate income for the community spouse.' Vry-Bills said the need for long-term care can also put a strain on adult children who want to support their aging parents. This situation can call for family discussions to decide the best path forward. More From GOBankingRates This article originally appeared on 4 Things Soon-To-Be Retired Boomers Need To Know About Long-Term Care Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26-07-2025
- Health
- Yahoo
4 Things Soon-To-Be Retired Boomers Need To Know About Long-Term Care
It can be an extremely upsetting situation when a family member needs long-term care. As reported by the Wall Street Journal, demand and costs for care are rising as concerns grow over staffing for the industry. Read More: Find Out: If you're a soon-to-be retired boomer, there are some key things you need to know about possibly requiring help with living needs in your later years. Long-Term Care Can Be a Life-Changing Experience According to Rhonda Vry-Bills, CLTC, from Long Term Care Strategies, 'I wish more people would understand or treat an extended care event as a life-changing income event and not a one-time deductible.' Per Vry-Bills, if you need long-term care and it costs around $13,000 per month for an undetermined length of time, it may be a struggle to pay for that out of your retirement income. Per CareScout, the cost of assisted living communities, nursing home care, and homemaker services all rose around 10% in 2024, while the cost of aides for home health care rose about 3%. Discover Next: You May Be Surprised Who Needs Long-Term Care Don't just expect other retirees to need long-term care. Here's a look at the risk for people aged 65 and older from the Center for Retirement Research at Boston College: About 20% of retirees will need no long-term care support. Around 20% of retirees are likely to have a severe need. An estimated 25% will have low needs. Approximately 37% will have moderate needs. You May Be Thinking Incorrectly About Who Pays As reported by the New York Times, there's widespread confusion over what Medicare and Medicaid cover and pay for when it comes to long-term care. In general, Medicare covers up to 100 days after a hospitalization for a stay in a skilled nursing facility. Medicaid covers long-term care services for people with low income and assets. 'No one wants to dip into their 401K to pay their cell phone bill and certainly not to pay for a bill for extended care,' Vry-Bills said. 'When retirees do not have the monthly income to pay for home care or facility care, they have no other choice to go to their portfolio.' Vry-Bills added another important consideration is taxes. You may face unexpected taxes when you take out money you intended for retirement purposes to cover long-term care. You Need To Think About Others Stop and think for a moment about who'd be impacted if you needed long-term care. 'When one partner or spouse needs care, their income goes to pay their bill, leaving the community spouse to pay for all of the household expenses and only one income to pay it,' Vry-Bills said. 'Meanwhile, the spouse needing care is invading the portfolio, which is creating taxes, and reducing the overall value of the account, which is designed to generate income for the community spouse.' Vry-Bills said the need for long-term care can also put a strain on adult children who want to support their aging parents. This situation can call for family discussions to decide the best path forward. More From GOBankingRates This article originally appeared on 4 Things Soon-To-Be Retired Boomers Need To Know About Long-Term Care Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
25-07-2025
- Business
- Business Wire
Genworth Issues Statement on Favorable Ruling for AXA in UK Payment Protection Insurance Case
RICHMOND, Va.--(BUSINESS WIRE)--Genworth Financial, Inc. (NYSE: GNW) today issued a statement in response to a UK High Court judgment in favor of AXA in the legal proceedings against Santander companies related to liabilities associated with the historic mis-selling of Payment Protection Insurance (PPI) policies. At issue were losses incurred from mis-selling complaints for PPI underwritten by two companies that AXA acquired from Genworth in 2015. The policies were sold by a company acquired by Santander in 2009. The judgment finds Santander liable for AXA's losses resulting from Santander's mis-selling. At a hearing in London today, the Judge awarded AXA damages, interest, and costs of approximately £680 million, or $911 million, using a £1/$1.34 exchange rate. Under prior agreements between Genworth and AXA, Genworth is entitled to share in funds that AXA recovers from third parties related to the mis-selling losses. If the judgment is paid in full and appeals, if any, are favorably resolved, Genworth would expect at that time to recover approximately $750 million, depending upon the applicable exchange rate at that time. As previously shared, any recoveries have not been factored into Genworth's capital allocation plans. Genworth plans to deploy any recoveries in line with our stated capital allocation priorities: investing in growth through CareScout, returning cash to shareholders through our buyback program, and opportunistically paying down debt. Cautionary Note Regarding Forward-Looking Statements This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as expects, intends, anticipates, plans, believes, seeks, estimates, will or words of similar meaning including, but are not limited to, statements relating to any potential future judgment, recovery and/or payment amounts in connection with the AXA S.A. and Santander Cards UK Limited litigation (AXA Litigation), Genworth's planned use of proceeds from any recovery in connection with the AXA Litigation, including share repurchases, debt repurchases and investments in new businesses, and the future financial condition and liquidity of Genworth. Forward-looking statements are based on management's current expectations and assumptions, which are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may differ materially from those in the forward-looking statements based on the actual ultimate outcome of the AXA Litigation, including without limitation the resolution of any appeals, changes to future capital allocation decisions, and other factors and risks, including those listed in the risk factor section of Genworth's Annual Report on Form 10-K, filed with the U.S. Securities and Exchange Commission (SEC) on February 28, 2025. Genworth undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise. About Genworth Financial Genworth Financial, Inc ('Genworth') (NYSE: GNW) is a Fortune 1000 company focused on empowering families to navigate the aging journey with confidence, now and in the future. Headquartered in Richmond, Virginia, Genworth and its CareScout businesses provide guidance, products, and services that help people understand their caregiving options and fund their long-term care needs. Genworth is also the parent company and majority-owner of publicly traded Enact Holdings, Inc. (Nasdaq: ACT), a leading U.S. mortgage insurance provider.
Yahoo
02-06-2025
- Business
- Yahoo
The Post seeks your questions about aging, healthcare and ways to finance it
The explosion is coming: The number of people 85 and older will nearly double in the next 10 years, according to the U.S. Census and, unless there's a miracle that halts aging, it's likely to increase the demand for healthcare like never before. Early signs foretell that the cost of medical care and living into advanced age with the right support is going to be an expensive proposition, fraught with complex and costly decisions. Medical service inflation is increasing faster than the general inflation rate: by 3.1% compared with the general inflation rate of 2.3%, according to the U.S. Bureau of Labor Statistics. The golden years might start looking a little less shiny, even for people who have saved their entire lives to enjoy this tropical paradise. The costs of long-term care, should one need it, can destroy generational wealth. A recent survey from CareScout, an information network of long-term care providers, found that the cost of a private room in a Miami-area nursing home averages about $12,714 a month. It's an expense most haven't saved for and don't have any idea how much it's going to cost, according to KFF, a national health policy research group. Looming in the background: Pressure to change Medicaid, which provides healthcare for the poorest residents and funds about 62% of Florida's nursing home residents and a labor shortage of people willing to do the lowest-level medical support jobs that involve bedpans, laundry and home help. Trying to navigate a complex and costly healthcare system in a world that's speeding up can be frustrating. These issues and others are why The Palm Beach Post is starting a new series of health columns focused on navigating the financial and physical challenges likely to emerge as more and more people reach advanced age and their children confront a reality there's no preparing for. We want to hear what questions you have as you and your loved ones enter new territory. Post insurance reporter Anne Geggis will take your questions about the ways to plan for living the best life even into advanced years. Geggis has more than 10 years' experience covering health and health governance, first at the Daytona Beach News-Journal, where she won the national Society of Professional Journalist's Sunshine Award, and then the Gainesville Sun, where she covered cutting-edge research at the state's chief academic medical center. She'll take your questions about health care and preparing for the future with advice from a wide range of experts. This column starts with you and your concerns, email them to her at ageggis@ or fill out the form below to submit your questions on healthcare and aging. Look for her first column in June. This article originally appeared on Palm Beach Post: Send us your questions about aging, healthcare and ways to finance it
New York Times
24-05-2025
- Health
- New York Times
Retirees, Get Ready to Need Long-Term Care. Here's What to Know.
Samir Shah is a forecaster — but he's an expert on the U.S. long-term care industry, not the weather. Right now, he is seeing storm clouds gathering for the Americans who will need help with basic living needs in the years ahead. 'Demand is rising at the same point that supply is decreasing, and both are happening at a very rapid pace,' said Mr. Shah, chief executive of CareScout, a company that publishes an annual study on the cost of long-term care. On the demand side of the equation is an aging population. In 2026, the oldest baby boomers will start turning 80, an age when the odds of needing care grow. The U.S. Census Bureau forecasts that the number of people 85 and older will nearly double by 2035 (to 11.8 million people) and nearly triple by 2060 (to 19 million). At the same time, the care industry has a shortage of workers that is driven partly by low wages. The median hourly wage for all direct care workers was $16.72 in 2023 — lower than the wage for all other jobs with similar or low entry-level requirements, according to an analysis by PHI, a nonprofit research and policy organization. Experts fear that shortage will be exacerbated by the Trump administration's immigration crackdown. Immigrants make up 28 percent of the long-term care work force — a figure that has been rising in recent years, according to KFF, a health policy research group. The price of some long-term care services in 2024 rose as much as 10 percent, according to the CareScout study — more than triple the 2.9 percent general rate of inflation that year. Much of your medical care in retirement will be covered by Medicare. Long-term care refers to help with daily living for people who are frail or disabled — bathing, dressing, using the toilet, preparing meals, shopping, walking and taking medications. Most Americans have misconceptions about how they might pay for those needs, or haven't planned for them at all. KFF polling shows that 23 percent of all adults — and 45 percent of those age 65 or older — incorrectly believe that Medicare will cover their time in a nursing home if they have a long-term illness or disability. Fewer than half of adults said they've talked seriously with loved ones about how they would obtain or pay for long-term care. And among near-retirement individuals, just 28 percent say they have set aside money for it. How should you think about the risk of needing care, what it will cost and how to pay for it? The answers might include long-term care insurance, savings, finding ways to optimize your guaranteed retirement income, Medicaid or reliance on a family member. Will you need care, and what will it cost? Looking at the risk for people aged 65 and older, the Center for Retirement Research at Boston College concluded that about one-fifth of retirees will require no long-term care support, and that 20 percent are likely to experience a severe need. Between these extremes, 25 percent will have low and 37 percent will have moderate needs. For any individual, these likelihoods can be very difficult to predict. According to the CareScout survey, last year, the monthly median cost for an assisted living community nationally was $5,900 per month, homemaker services cost $6,292 per month, while a private nursing home room cost $10,646. The escalation of these costs is not uniform. The cost of assisted living communities, nursing home care and homemaker services all jumped roughly 10 percent in 2024, but the cost of home health care aides rose just 3 percent, according to CareScout. And costs can vary depending on your level of need and location. The administration's crackdown on immigrants is widely expected to accelerate costs further and harm the quality of care. 'Long-term care providers would be in a really challenging place, as would long-term care recipients, without them,' said David Grabowski, a professor of health care policy at Harvard Medical School who has studied that work force. Dr. Grabowski's research also has found higher-quality care in regions with more immigrant workers. Demand for workers is expected to be strong in the years ahead. Home and residential care providers are expected to add 817,000 new jobs by 2032 for direct care roles, according to analysis of federal employment projections by PHI. That is the most new positions of any job category across the U.S. economy. 'We're simply not going to have enough people to take care of everyone' who needs care, said Mollie Gurian, a vice president at LeadingAge, a nonprofit that represents providers of aging services. Ms. Gurian also worries about the possible effect on costs if Congress cuts funding for Medicaid, which covers 61 percent of all long-term care, according to KFF. 'Providers would have to either reduce the number of Medicaid patients they accept, increase private pay rates or close facilities,' she said. Paying for care Insurance. Confusion is widespread over what Medicare and Medicaid cover. Medicare generally covers up to 100 days after a hospitalization in a skilled nursing facility. Medicaid covers long-term care services over a longer period of time, either in an institutional or home setting — but only for people with very low income and assets. 'Most people have this misconception that Medicare covers long-term care when we know that it is Medicaid that is the primary payer,' said Priya Chidambaram, senior policy manager for KFF's program on Medicaid and the uninsured. Medicaid most typically covers care in a nursing home — the services it covers at home are more limited, she said. Medicare will cover some types of care at home for people who are homebound or qualify for skilled care. Insurance companies have been selling long-term care insurance policies since the early 1980s, but they have never gained widespread popularity. The policies are complicated and costly — and many people resist buying them because they worry about funneling thousands of dollars into coverage they may not ever need to use. Moreover, the industry has been hurt by high-profile, large premium increases from some carriers. The market has been shrinking, said Brian Gordon, president of Gordon Associates, an insurance brokerage in Bannockburn, Ill., that specializes in long-term care coverage. 'When I started selling these policies 35 years ago, there were more than 125 insurance companies to choose from,' he said. 'Now there might be a dozen options.' Those choices would include sellers of traditional long-term care policies and so-called 'hybrid' policies that combine life insurance with a long-term care benefit, which have been gaining some traction. These policies make a long-term care benefit available through a death benefit that can be tapped early to pay for a qualifying long-term care need. 'These policies allow you to use the death benefit while you are living,' Mr. Gordon said. Sample policies provided by Mr. Gordon show that a 55-year-old couple could buy a shared or joint policy of this type that pays a $5,000 monthly benefit, or a shared pool of benefits between the two of $534,000. They could fund that with 10 annual premium payments of $16,500. By contrast, the same couple could buy a traditional long-term care policy that pays a similar monthly benefit funded by 10 annual premium payments of $18,000. Insurance companies require that customers pass a medical exam to qualify for commercial policies, and that becomes more difficult to do for older customers, who are more likely to have disqualifying conditions, Mr. Gordon notes. Self-fund. Affluent households may be able to fund a long-term care need out of pocket, but this strategy should be part of a broader plan for aging, said Carolyn McClanahan, a physician and certified financial planner in Jacksonville, Fla. 'We have conversations about this with our clients when they're in their late 50s or early 60s,' she said. Key topics include desired locations and identifying trusted family members or friends who might be available to help make health care decisions. Will you want to age at home, or are you willing to move? Self-funding makes the most sense for single people who don't have children and are not leaving money to heirs. 'If I have a client who wants to leave a legacy to their children, that's where having an insurance policy is a nice option,' she said. How much to set aside? The specifics depend on factors like health status, desired care scenario, and personal financial situation, Dr. McClanahan said. For clients with health issues, she suggests planning for two to three years of long-term care needs, and up to five years for those at higher risk of dementia or with good health and longevity prospects. And, she recommends keeping at least five years' worth of expenses in easily accessible money like cash or short-term bonds. Another key consideration is whether the funds might need to cover one person or two, she added. 'A couple should make sure that they aren't setting themselves up to possibly decimate the surviving spouse financially by funding care for one person. That's where you might want to maybe consider insurance that funds a first long-term care need.' Funding might come from tax-deferred, tax-free or taxable accounts, she said. 'We're always working with clients to make sure we're maximizing lower tax brackets to at least remove money from I.R.A.s to fill their taxable bucket or do Roth conversions, so that gives them more tax flexibility down the road when they may have higher cash flow needs for things like long-term care.' Health Savings Accounts offer one attractive option for people able to fund the accounts at maximum levels and avoid drawing them down to pay for health care at younger ages, she added. Guaranteed income from Social Security can help meet a long-term care expense — and often is overlooked, Dr. McClanahan said — and it's a good reason to maximize your benefit by delaying your claim as long as possible. Most people turn to informal care from family members or friends — 64 percent of caregiving hours are provided by children, spouses, other relatives or nonrelatives, according to CRR. But that can have financial consequences for the caregivers — a KFF poll found that 56 percent of people who provided or paid for someone's long-term care cut back on spending on food, clothing or other basic needs; one-third had trouble paying rent or utility bills. And time away from work often translates to lower career earnings, fewer Social Security benefits, and lower levels of savings. 'It's felt at a moment in time, but it's felt continuously for many, many years to come,' Mr. Shah said. 'There's a domino effect.'
