Out-of-Pocket Costs: High and Rising | Michigan Elder Law Center ...

The last several years of life are often the most expensive due to out-of-pocket expenses that are not covered by Medicare. A new study by the Mount Sinai School of Medicine in Manhattan documents the significant financial burden on individuals and families as result of out-of-pocket costs for older adults at the close of their life.

Published in The Journal of General Internal Medicine, the report analyzed data about 3,209 people who participated in the national Health and Retirement Study and who died between 2002 and 2008. The survey collects information about medical out-of-pocket spending every two years:

• On average, people with Medicare coverage paid $38,688 for medical care in the last five years of life.
• There was enormous variation, with 25 percent of participants spending an average $101,791 out-of-pocket for medical services and 25 percent spending an average $5,163 during this period.
• One-quarter of older adults incurred out-of-pocket medical expenses that exceeded the total value of their assets during this five-year period. Forty-three percent of older adults incurred expenses that exceeded their assets, excluding the value of their homes.
• People with Alzheimer?s disease spent more than those with any other type of illness ? an average $66,155 during the last five years of life, compared with average spending of $32,129 for cancer, $37,996 for cardiovascular disease and $38,517 for diabetes.
• Long-term care expenses (nursing home, assisted living), which aren?t covered by Medicare, much to many families? deep surprise, were the No. 1 category of out-of-pocket spending, followed by home health care.

Besides long-term care, traditional Medicare does not pay for companions or homemakers who help older people get dressed, eat, bathe and cook; dental services; hearing aids and eyeglasses.

Naturally, this has become a presidential campaign issue, with the Republicans having proposed a voucher system for Medicare that most analysts predict will increase older adults? out-of-pocket costs. According to Robert Moffit, senior fellow at the Heritage Foundation, a conservative research group, all proposals being discussed by the Republicans will require seniors to pay more.

A June 2011 report from the Kaiser Family Foundation found that people with Medicare spent 16 percent of their income on out-of-pocket medical expenses in 2006 (an average $4,241 per Medicare member), up from 12 percent in 1997.

Read More: http://newoldage.blogs.nytimes.com/2012/09/21/the-high-cost-of-out-of-pocket-expenses/

Attorney Christopher J. Berry is a Metro Detroit estate planning and elder law lawyer who helps families, seniors, veterans and business owners with their important legal needs. Oakland County estate planning lawyer, Christopher Berry is a partner in the Bloomfield Hills law firm of Witzke Berry PLLC. Mr. Berry practices in the areas of estate planning, business, probate, veterans benefits & Medicaid planning. Follow Christopher on Twitter @chrisberryesq

Source: http://michiganelderlawcenter.com/outofpocket-costs-high-rising/

xfactor frankincense cloudy with a chance of meatballs the hobbit movie hanukkah gpa calculator menorah