MAUMEE — January is Financial Wellness Month and the Alzheimer’s Association Northwest Ohio Chapter is encouraging families to proactively plan for the financial impact of the long-term care of a loved one diagnosed with Alzheimer’s, the most expensive disease in the country.
“Financial planning for the possibility of a long-term medical condition such as Alzheimer’s can be daunting, yet is vital for families,” said Julia Pechlivanos, executive director of the Alzheimer’s Association Northwest Ohio Chapter.
“We provide extensive programs and services free to the community to assist with the challenges of living with Alzheimer’s. We offer education programs, such as a free webinar on legal and financial planning, care consultations and website resources to provide important guidance and support to local families.”
The unfortunate truth is that among those who are caregivers of people with Alzheimer’s and/or contribute financially to their care, 48% cut back on their own expenses (including food, transportation and medical care) to pay for dementia-related care.
Due to the economic burden of dementia, one in five caregivers dip into their retirement savings, and 15% have to borrow money. One in nine cut back on spending for their children’s education.
Today there are more than 6 million Americans living with Alzheimer’s and over 11 million who act as unpaid caregivers. It is projected that by 2050, the number of people age 65 and older with Alzheimer’s or dementia will reach 12.7 million, greatly increasing the number of families who will face the challenges of paying for long-term care.
“As the age of our population increases over the next decade, it is imperative to accelerate the public and private investment in research to find a way to prevent Alzheimer’s disease or stop its progression in the millions of baby boomers who will be diagnosed with the disease,” said Pechlivanos.
“Methods of early diagnosis and the addition of prescription drugs and chronic care to Medicare to prevent the acute care crises and excess disability that drive up the cost of health care for people with Alzheimer’s disease, and support for family caregivers, including affordable quality long-term care, are all needed.”
Of the total lifetime cost of caring for someone with dementia, 70% is borne by families either through out-of-pocket health and long-term care expenses or from the value of unpaid care.
Alzheimer’s disease can also significantly affect the earning potential of an individual living with the disease or their caregiver: 18% of dementia caregivers went from full to part-time or cut back hours, 9% of caregivers gave up working entirely and 6% retired early.
The Northwest Ohio Chapter offers these tips:
· Look at retirement planning as a time to think about how to prepare for the need for long-term medical care. After an Alzheimer’s diagnosis, options may be more limited.
· Conduct an inventory of financial resources — savings, insurance, retirement benefits, government assistance, VA benefits, etc. A financial planner or elder care attorney can help.
· Understand the role and limitations of Medicare, Medicaid and other insurance options. An Alzheimer’s Association report found nearly two of three people incorrectly believe Medicare helps pay for nursing home care, or were unsure whether it did.
· Investigate local long-term care services such as home care, assisted living residences and nursing homes. Ask what types of insurance are accepted, including Medicaid, as few individuals with Alzheimer’s and other dementias have sufficient long-term care insurance or can afford to pay out-of-pocket for long-term care services.
Disease-related costs can cause many families and caregivers to make enormous personal and financial sacrifices. According to the Alzheimer’s Association 2021 Alzheimer’s Disease Facts and Figures report:
· In 2020, the lifetime cost of care for a person living with dementia was $373,527.
· Average out-of-pocket costs for health care and long-term care services not covered by Medicare, Medicaid and private insurance exceed $10,000 annually.
· Nearly half (48%) of care contributors must cut back on their own expenses — including basic necessities such as food, transportation and medical care — to afford dementia-related care, while others must draw from their own savings or retirement funds.
In 2020, there were 442,000 caregivers who provided 590 million hours of unpaid care to 220,000 people living with Alzheimer’s disease in Ohio. Resources are available at https://www.alz.org/nwohio/helping_you or by calling the Alzheimer’s Association Northwest Ohio Chapter at 419-537-1999.
About the Alzheimer’s Association
The Alzheimer’s Association is a worldwide voluntary health organization dedicated to Alzheimer’s care, support and research. Our mission is to lead the way to end Alzheimer’s and all other dementia — by accelerating global research, driving risk reduction and early detection, and maximizing quality care and support. Our vision is a world without Alzheimer’s and all other dementia. Visit alz.org or call 1-800-272-3900.
