“Why does one of the most needed jobs pay so poorly?,” by Paul Solman, PBS

“With about 10,000 baby boomers retiring every single day, home care is one of the fastest growing, most needed occupations in America. But there’s a problem: The current median pay is just $10.49 per hour. Economics correspondent Paul Solman reports on why these vital workers get paid so little. …

Paul Solman:

But with growing demand, not enough workers, basic economics says wages simply have to go up. The catch, home care is dominated by one payer. Yes, some is paid for privately through long-term care insurance or personal savings. But 70 percent is paid for by the government. Medicare only pays for short-term home care. So, Medicaid is the primary long-term home care payer, channeled through local area agencies on aging. …

Amy Northway:

There’s very little margin, yes, in those clients. And our private pay clients, of course, do pay more for that, but they really do kind of offset our other clients who aren’t able to afford to pay that. …

Paul Solman:

So, what can be done? We will explore possible answers in part two of our look at the simmering home care crisis.”

LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform):

What’s the answer? Throw more government money at the problem government created in the first place? Or close Medicaid eligibility loopholes that trap most people on Medicaid for LTC? Hmmm. I wonder what PBS will propose. Stay tuned for the next episode.

Why does one of the most needed jobs pay so poorly?

#boomers
#goldencareagent