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61 °F Forecast | Road Cams Sunday, September 12, 2004 Today's News | Classifieds | Autos | Homes | Jobs | Tempo | Health | Community | Home Delivery SECTIONS Home Page Local News Sports Business Obituaries Life Opinion - Politics Tempo AP News Weather Classified Archives Site Map SPECIAL SECTIONS Since We Asked Outdoor Journal Prime Times Wellness Connection Readers' Choice Real Estate Showcase Joy Magazine Homelife Magazine Wedding Guide Rogue Valley's Finest EXTRA Newspaper in Education Personals Movie Times TV Times E The People MARKETPLACE Find a Car Find a Home Find a Job Classifieds Place an ad eSouthernOregon Automotive Communities Entertainment Publications Recreation Calendar CUSTOMER SERVICE Frequent Questions Advertising Information Home Delivery Employment Contact Us Media Kit Network Affiliate Oregon Road Conditions & Cams Email Story to a Friend March 9, 2003 Talk focuses on planning long-term care options By JOHN DARLING for the Mail Tribune As we live longer and longer, a new kind of insurance has emerged to cover those times you likely will need home care, foster care, an alternative care facility or nursing home. "We all plan for retirement, but no one wants to see themselves in a situation where they need care. They’d much rather see themselves swimming in the Caribbean," said Jonna Ramelli, a Medford senior financial adviser. Ramelli will give a talk on "Care Options as We Age" at noon Tuesday at Providence Medford Medical Center. Call 732-5955 to register. It’s natural to deny the frailties of old age, starting with wrinkles, hair loss, stiff joints and progressing into losing "personal skills" such as dressing, bathing, eating and having the mental capacity to organize your life, she said. In the back of their minds, many middle-aged people think that in old age, money will come from their own finances, insurance and the kindness of children or other relatives. The reality is most family members are far away, you don’t want to burden them, you don’t have a lot in common with them, they need their incomes to live on and there’s a huge "privacy and dignity thing" that gets compromised with combined families, Ramelli said. "The day comes as a shock to many people when John gets out of the hospital but the doctor says he can’t go home. He needs care and Mary doesn’t have the skills or tools to provide that care," she said. "She has to find an alternate place for him — and right away, she has to ask herself, ‘Where’s the money going to come from?’" For in-home care, unskilled help is $12 an hour, and skilled, licensed care is $20 to $50. At $20, you’re looking at daily bills of $160 or $3,600 a month, she said. Even day care is $50 a day. It’s sobering to hear the statistics: 43 percent of people over 65 spend time in an alternative care facility. Half of those need six months of care or less, while half need an average three years’ care. Sixty percent of those over 65 need some kind of care. That latter group would pay $50,000 a year today, and 20 years from now, about $134,000 a year. How do people pay for nursing home, foster care and other alternative care facilities? Forty-two percent use Medicaid (for low-income seniors); 25 percent spend out of pocket (including savings and investments); 15 percent use Medicare; 12 percent use private pay; and 2 percent receive money from Veterans Affairs. Age 50, when you’re in good health and can get the lowest premiums, is the optimal time to start coverage, said Ramelli, who pays $110 a month for her own. "It’s pennies for dollars of coverage." To set your rates, agents ask you to fill out a health questionnaire and get vital signs read by a paramedic. If you wait until you’re older and have more health issues, premiums will be higher. The cost of policies is determined by your age, health and the coverage you apply for, including cost of care per day, length of time it will apply, a time deductible (length of time you wait after the qualifying incident or diagnosis) and the inflation of costs over time. "People more and more are realizing they need it because old will happen, but long has to be planned for," she said. "If you need the policy the next day, it will be there for you, but most policy holders go 10 or 20 years before using it." John Darling is a free-lance writer living in Ashland. E-mail him at [email protected]. Mail Tribune Home Local News | Sports | Business | Obituaries | Life Opinion - Politics | AP News | Archives | Site Map E Southern Oregon | Classified Copyright © 1997-2004 Mail Tribune. All rights reserved. Privacy Policy | Terms & Conditions Website Feedback ADVERTISERS A D V E R T I S E R S SPECIAL SECTIONS Auto Finder Job Finder Home Finder Joy Magazine Homelife Magazine Tempo Readers' Choice Real Estate Showcase Since We Asked Outdoor Journal Moving to Southern Oregon? Volunteer Opportunities