Cost of Care Weighs on Island Residents

By: State: Hawaii | Source: AARP.org

Worried about the cost of long-term care for yourself or someone you love? You're not alone. In AARP surveys, three out of four Hawaii residents say they couldn't afford even one year of private nursing home care—which can run as high as $107,000. Four in 10 aren't confident that they could pay for a year of in-home care provided by a nurse or personal care aide.

Nationally, about 12 million Americans age 65 and older will need long-term care services in 2020. Anyone who turns 65 today will probably need some form of care for at least three years during their lifetime. Yet, few people plan for their long-term care needs, perhaps due to concerns about cost or confusion over the options available to them.

"You'd be amazed at how poorly prepared most people in Hawaii are for disability in their declining years," said AARP Hawaii State President Stuart Ho. "The cost of nursing homes and assisted living facilities in Hawaii is among the highest in the country, and for the majority of residents facing age-related disabilities, the hope is that savings and the goodwill of children or relatives will get them through."

That may be wishful thinking. Unless you have private long-term care insurance, which gets more expensive as you get older, a couple of years in a long-term care facility can wipe out your retirement nest egg. And while Hawaii caregivers today provide the bulk of the state's long-term care services, over the next 20 years the number people of traditional caregiving age is projected to decrease by 10 percent. During that time, the number of residents age 65 and older will spike upward by 78 percent.

So what can individuals and families do to plan for their long-term care needs? The first step is to be aware of what the government does and doesn't cover. Many people believe Medicare will pay their long-term care bills, but in fact it pays for only a small percentage of nursing home costs and covers only short stays of less than 100 days. Medicaid is a joint federal and state program that is the largest public payer for long-term care services, but eligibility is restricted to people with limited incomes and few assets.

In Hawaii, county aging agencies can help residents sort through options and costs, but families should be aware that there are waiting lists for many state-funded services. One hopeful development: last year, the state's first Aging and Disability Resource Center (ADRC) opened in Hilo. The ADRC is a one-stop shop for community resources and long-term care information for older adults, people with disabilities, and family caregivers looking for help.

For more information in Honolulu, call the Senior Help Line at 768-7700. On Maui, call 270-7774. On the Big Island, call 961-8600 (Hilo) and 327-3597 (Kona). On Kauai, call 241-4470.

Find helpful tips from AARP at www.aarp.org/longtermcare.

Other Resources

2008 Hawaii Health and Long-Term Care Survey

Financing Long-Term Care in Hawaii: A Survey of Residents 18 and Older

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