Many Boomers Think Obamacare Will Pay for Private Nursing Home Room
NEW YORK (TheStreet) -- Nearly three-quarters (72%) of "affluent baby boomers" believe the Affordable Care Act will pay much of their long-term heath care needs in retirement and are "not adequately planning" for long-term care costs or "not planning at all, according to data from Nationwide Insurance.
The study says only 28% of Americans over the age of 50 and who have at least $150,000 in household income know the ACA won't handle their long-term medical costs.
That is not good -- not when the Washington, D.C.-based Heritage Foundation pegs the median annual price tag for a private nursing home room (the kind someone earning more than $150,000 a year might want) at $90,520.
The federal government covers some costs, through Medicaid and Medicare (40% and 23% for post-acute care, respectively, Heritage says), but the rest comes out of the pockets of consumers, directly or through long-term care insurance payments.What makes this particularly sad: Nationwide says 54% of boomers would "rather die than live in a nursing home," primarily because they don't want to financial burden their families. Nationwide says that in 2012, data showed Americans expecting to pay $78,920 in annual long-term care costs. Last year their data showed boomers expected to pay only $36,220 for LTC in retirement -- even as health care costs continued to rise.
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