By Pamela D Wilson, The Care Navigator, CSA, MS, BS/BA, CG
My mother, Rose, managed everything in our home including paying the bills. After she passed away I discovered that she never knew how to balance a checkbook. In looking through the check register, she simply transferred or deposited more money when the balance became low. Born in 1926, Rose had only a high school education that served her well during her lifetime.
By Pamela D Wilson, The Care Navigator, CSA, MS, BS/BA, CG
In recent months I've met with an increasing number of families trying to figure out how to access long term care for their parents. The challenge for most is that they never for a moment considered that they would have to pay for care; they simply assumed the government would take care of it. This illustrates very clearly the looming long term care problem in the United States. We don't have a system that educates or requires individuals to pay for their own long term care so the default is to access the government Medicaid program when families don't have the financial resources to pay for their own care.
By Pamela D Wilson, The 
Recent economic woes have many Americans postponing health care. For those laid off or unemployed the situation is even more serious because they lack health care insurance for even basic needs. Many small companies have never been able to afford the participation requirements in order to offer insurance to their employees or are facing the decision to remain in business or cease offering health care benefits. Over half of U.S. personal bankruptcies result from out of pocket medical expenses. Fortunately most retirees over age 65 have health insurance coverage through the government sponsored plan, Medicare.
We all see the news and it’s rarely good these days; unemployment, the loss of health care benefits, bank failures, the mortgage crises and families losing their homes, companies going out of business and the daily mention of the United States bail out package. Whether or not you agree with the political side of these events, the projections regarding the need for long term care are real and will be creating the next financial crises.
In recent months I've met with an increasing number of families trying to figure out how to access long term care for their parents. The challenge for most is that they never for a moment considered that they would have to pay for care; they simply assumed the government would take care of it. This illustrates very clearly the looming long term care problem in the United States. We don't have a system that educates or requires individuals to pay for their own long term care so the default is to access the government Medicaid program.
According to a Boston College study, "Health Care Costs Drive Up the National Retirement Risk Index", 44 percent of households will not be able to maintain their standard of living at retirement even if they wait until age 65 to retire. The study discussed the costs of rising health care needs and the lack of general awareness about the actual cost of care after retirement. Many individuals underestimate the financial cost of care and will end up shifting dollars from non-health consumption areas like travel and entertainment to health care.
When my mother passed away and I started going through medical bills, monthly bills and the bank account I discovered something shocking. My mother never once balanced her checkbook. This was a shock to me at the time because I was fanatical about balancing my checkbook to the penny. And not only that, I knew down to the penny what the money in my checking account was intended to pay each month.
How often do individuals purchase insurance policies and then decide to no longer pay premiums? The decision to no longer pay premiums is called a "lapse rate". Lapse rates are factored into policy rates and are one reason long term care insurance policy rates have increased. Consumers value their long term care insurance policies and are not deciding to let their policies lapse; this means that they understand the value and the need for this type of policy when planning for their long term future.
“Most people, if they look at their life expectancy and they think they will live to 90, are nuts to retire at 60. They’re going to be living in poverty at 80,” according to Peter Morici, economist at the 
Birthdays come and go, time flies before we realize. We buy homes, have children, save for college and other expenses. But many of us don't consider the importance of protecting our independence when we retire or protecting our retirement savings from the cost of escalating health care expenses. Most are surprised to learn that one year in a skilled facility today averages $75,000 per year and that Medicare does not provide for this payment. This amount would substantially or totally deplete many retirement savings accounts.
When people hear "long term care" everyone thinks of a nursing home. Most people know of someone who has been in a nursing home and the experience was negative. Fortunately long term care no longer means nursing home care. In my experience over the past ten years working in the health care industry, long term care has come to mean a variety of types of care options. Not only have I helped clients access home care services through a long term care insurance benefit, but I've helped them access day care, assisted living and a variety of other services including personal emergency systems. Education is the most important component of long term care planning.