Abstract: A recent study from the University of Southern California addresses growing concerns surrounding the costs of Alzheimer’s disease. It is estimated that costs of care for individuals will rise from $307 billion annually to $1.5 trillion by 2050. The primary issue is that the prognosis for individuals with Alzheimer’s is bleak. People do not recover, as a result, the disease, especially in late stages, requires advanced 24 hour care that comes at a high price. Currently scientists are working on strategies to discover new and innovative ways to delay the onset of the disease. Of course this would not only improve the quality of life of those suffering from the illness, it would also buy the nation more time to address the concerns by yielding unprecedented savings.
Industry News Related to Topic: Retirement Risks
Abstract: Many retirees are unaware that long-term care costs are currently a greater threat to financial security than health care costs. Interestingly, this article reports on how the insurance industry does not want to sell new long-term care policies because they are not making as much money off of them as originally expected. This is primarily due to the fact that interest rates on the policies are low and policyholders do not drop their policies frequently.
Abstract: Based off of 2013 Risks and Process of Retirement Survey Report by the SOA, this article from MarketWatch counts down the 6 biggest risks to retirement security with topics ranging from scams and fraud to understanding your lifespan.
Abstract: Through eye-opening statistics on how Medicaid dollars are spent, this article illustrates how Medicaid is the only safety net for millions of middle-class Americans who need long-term care.
Surprisingly, Medicaid currently spends more than five times as much on each senior in long-term care than each low-income child. Over 31% of Medicaid’s $400 billion dollars (federal and state) goes to the long-term care of the elderly and the disabled. New York state is currently experimenting with managed care (in home, government funded help) in an attempt to offset the rising costs of long-term care by keeping those in need healthier and at home.