California Field Poll Says Few Prepared for What Lies Ahead

According to a Field Poll commissioned by the California Department of Health Services (DHS), Californians are woefully unprepared for what lies ahead for one out of two people in our State.  That's right, although statistics indicate that half of our state's residents will eventually end up in a nursing home, few have purchased insurance policies that will cover the annual costs, increasing the likelihood that they will need to spend their entire life savings just to receive a relatively few months of needed care.

Fantasies, Denials and Misconceptions

Fourteen-percent of those participating in the survey actually thought that the government will create a program to pay for their long-term care costs.  About half had not even given the matter any thought at all.  A third thought that their assets would cover the costs, yet only twenty-percent of the respondents were aware that such costs can soar well over $69,000 a year--based upon 2006 costs before future inflation.  

Not only do people underestimate the cost of care, they also hold misguided expectations. Fifty-five percent thought that their own health plan may cover the costs.  The fact is, according to the DHS, almost no health insurance plan covers long-term care for an extended period of time, demonstrating that most Californians continue to live under the false security that they have long-term care coverage.

Light at the End of the Tunnel

On the bright side, the poll found that more people are trusting insurance companies now than in the past, and more people have improved perceptions regarding the quality of policies now available. An increasing percentage of people are, in fact, considering long-term care insurance.  This positive movement can be credited, in a large part, to the consumer education efforts of the DHS and The California Partnership for Long-Term Care. 

The Partnership, as it is known, is an alliance between the State of California, consumers, and certain insurance companies that have agreed to offer quality, affordable long-term care insurance policies to middle-income Californians under the watchful eye of the DHS.

The Partnership is continuously working to educate middle-income people about how to plan to meet their long-term care needs. According to Sandra Pierce-Miller, the Partnership Director, families have to talk about future long-term care needs and figure out a plan together.  Unfortunately, most people still wait far too long before having this type of conversation, and, sadly, it is often too late.  The recommendation is that you request information tailored to your individual and family circumstances.

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