It’s a Family Affair: Three Challenges and Long-Term Care Options Hispanics in America Need to Evaluate Sooner rather than Later

José “Rafi” Rodríguez

CHL Senior Consultant and President Rodríguez Financial Strategies, LLC

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It’s a Family Affair: Three Challenges and Long-Term Care Options Hispanics in America Need to Evaluate Sooner rather than Later

12/24/2013 01:23PM | 22651 views

Photo by Compassionate Care NY

As the fastest growing minority in the Unite States, Hispanics will likely face a long-term care challenge in their families. According to a November AARP article: “Challenges of Long Term Care, ” 18 million people over age 65 will be dealing with a disability by 2030, up 11 million in 2010. Also, the article highlights that by 2050, there will be three times as many people age 80 and older as in 2010. In addition, the Center for Medicare and Medicaid Services projects that 70% of all Americans over the age of 65 will require some type of long-term care services.

Why should Hispanics in America pay attention to these numbers? As Hispanics move to the U.S. (like I did) in pursuit of the American Dream, we face a challenge which, if not planned for, can have a significant impact, both financially and emotionally. Like many Hispanics, I grew up in a very close and extended family environment (with many aunts, uncles, cousins, and even great uncles, great aunts and great grandparents). I noticed how the family members took care of the elderly at their homes. My great grandmother was given care at home until she passed at the age of 107, my great aunt was taken care of until she passed of 104, and my aunt until she passed at 105. Back then, there were no long-term care policies to speak of – care was handled by family.

It was a challenge to juggle my own family priorities in the U.S. with my ailing parents’ needs back home. This is when I had a serious family conversation with the siblings back home and the ones in the U.S. We all agreed to help in any way we could; financially, taking turns, and looking at quality of life alternatives.

Here are the three challenges and options I discussed with my siblings as we developed a strategy for the long-term care of our parents:

Cost: This challenge addresses the cost of long-term care at home or at a skilled facility. Quality long-term care can be costly (today the national average is $6000/mo), so researching different facilities and home care providers is paramount to identify resources available. In many cases, for adult children living away from their parents, it may be more cost effective to look into purchasing a long-term care plan for the parents and even share the cost among siblings.
Longevity: This challenge addresses longevity. We do not know how long our parents (or ourselves for that matter) are going to live but in my family, many have surpassed 100! This can be a costly and emotional challenge for all involved especially of the family members who live away. Another consideration is longevity may require special care available only through skilled professionals. Make sure to research this special type of care so you can plan accordingly.
How Soon: Purchasing a long-term plan when you are younger and healthier is the right time to shop for a plan. Long-term care history shows the average age for purchasing a plan is 58 years old. Long-term care is not about growing old – a long-term care event can happen at any age. Planning ahead can mitigate financial and emotional hardships.