Medicaid spending has been growing faster than the economy since the program’s inception and generally has grown faster than state revenue declares one of the nation’s top experts in the long term care insurance field.
“Medicaid is such a large part of state spending, as much as 24 percent of total funds and 16 percent of state general funds, that it is simply not going to be sustainable for long,”
explains Jesse Slome, executive director of the American Association for Long-Term Care Insurance, the national organization that advocates for long term care planning. “With health care costs expected to grow faster than the economy and taxes coupled with the millions of aging baby boomers who have no savings or plan to pay for costs associated with needing care, we are facing an economic tsunami no one wants to talk about.”
According to Slome a leading long term care insurance expert, Medicaid spending recently surpassed spening for K-12 education by states. “Medicaid will consume a growing share of state budgets,” Slome explains. “At some point we are going to face a generational war when younger families realize that Medicaid is the reason their children are facing 60 students per class and the continued worsening of an educational system.”
Slome noted that federal funding under the American Recovery and Reinvestment Act allowed states from having to raise taxes or reduce benefits. “The expiration of funding is forcing states to make up the shortfall and it won’t be pretty,” Slome says. “California has 7.5 million Medicaid enrollees, 29 percent of the population, and that is just one state.”
The organization’s director urged those in their 50s and 60s with the ability to health qualify to look into long term care insurance costs. “If you believe government programs which are supported by taxpayer dollars will be better able to provide for your care and give you the choices and options you desire in the years ahead, then there is no reason to do any planning,” Slome acknowledged. “If you don’t, then one has to look into all the options but insurance from insurers is only available to those able to still health qualify.”
The Los Angeles-based American Association for Long-Term Care Insurance serves the public by educating Americans about the importance of planning for the risk of needing long term care. Support for the organization comes primarily from insurance agents and brokers who specialize in the marketing of this protection.
For additional information on long term care insurance costs or to connect with a specialist member of the Association call (818) 597-3227 or visit the organization’s website.
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