Posted in Financial & Money on April 29th, 2010
Tags: bankruptcy, caregiving, elder care debt, financial stress, long term care, senior medical costs

Caregiving: The financial stress of elder care and senior medical costs may lead to bankruptcy.

 

 

Long term care and senior medical costs are causing serious financial stress on Family Caregivers.    

Elder Care debt is a serious problem facing many families today, with some families having to declare bankruptcy.  

The elder care tsunami heading our way is a reality many of us are unprepared for and will affect many family members caring for elderly parents requiring long term care.

As part of our medical bankruptcy counseling session, I had to attend a meeting with the trustee’s assistant for debt counseling; which is ironic since we purchase most of our clothing at second stores, never had a vacation in 12 years and never purchased anything that could be sold to recoup our debt, as most of our debt revolved around medical costs, over and above what the government pays for.

It is estimated that the medical monster’s ferocious appetite requires an average of $36.00 per day or $13,000.00 per year for additional medical expenses while caring for an elderly loved one at home.  This estimate is for Canada and the USA.

During this bankruptcy session, the trustee’s assistant, a young married mother of two little girls, mentioned her mother-in-law can barely make ends meet on her wages, so how is she going to financially survive when she retires.  To help out, this young couple would like their dear mother to live with them when she retires. This is a very supportive gesture and thought how wonderfully kind this young woman is, but had to warn her of the burden she may face caring for her mother-in-law should she take on this responsibility.

Society is going to be hit with an elder care tsunami of elderly parents who are all going to need 24/7 care.  Our aging population is living longer for the first time in human history and they are out there in the millions, all competing for the same long term nursing care space, which the government cannot afford.

The government is fully aware of the looming crisis on the horizon but society just can’t relate to the hardship heading our way. A society that thinks the government is going to take care of the problem is very naïve and is heading for years of hardship with possible poverty and even bankruptcy if they do not take a hard look into the future.

The reality for our elder care today is either the family pays between $2,000 to $10,000 per month for each elderly person requiring long term care or a family member will have to stay at home to look after their elderly parent 24/7, with loss of wages, pension funds and will also incur on going medical debt for their elderly loved one and their own medical debt due to physical, and mental stress and exhaustion.

I realized then, while talking to this lovely young lady with a big caring heart that any mother-in-law would dream of having as a daughter in-law, may unknowingly be setting herself up for possible bankruptcy 10 years down the road for caring for an elderly family member, even though she was well versed on bankruptcy matters.

Not even individuals employed in the bankruptcy field, understand just how unprepared and vulnerable they are to the financial hardship of caregiving for a elderly loved one, which will seriously harm many families in the decades to come.

SUMMARY:

LONG TERM CARE - Also called nursing home and extended care home, where elderly family members requiring 24/7 care. The cost for long term care is between $2,000.00 to $10,000.00 per month, over and above, what government or insurance policies will pay.

ELDER CARE DEBT – Seniors are living longer for the first time in our history.  Inflation eroding retirement savings and high cost of medical care is creating medical debt not only for seniors, but also for their family members.

BANKRUPTCY – The rate of medical bankruptcy caring for an elderly loved one is growing.  Family Caregivers must understand the financial responsibility placed on them.

SENIOR MEDICAL COSTS – Medical care is expensive.  An elderly loved one will require medical care as they age.  Many family members are not prepared for this expense.

FINANCIAL STRESS – Resulting from medical and long term care costs for Family Caregivers who must pay the additional expenses while caring for their loved ones.

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