“Why Long-Term Care Cost Reports Are Often Misleading,” by Romeo Raabe, ThinkAdvisor
“‘Median cost’ means half of the costs will be below the median and half will be above. The median auto accident is $7,500, how much liability insurance do you carry? Thus, if the median cost of a nursing home is $8,821 per month, according to one survey, this means there may be some charging $6,450 per month and some charging $11,192 per month. This does not even begin to address the different needs of various residents. … I tell [my clients] about the median nursing home costs, per a survey, and also about the high costs that some people are paying, and let the clients choose the coverage level. If they want to plan for just the median cost, they initial an item showing that planning for just the median cost is their choice. If they want to be sure their insurance will cover the bills, just like auto insurance, they plan for the highest likely cost.”
LTC Comment, Stephen A. Moses, President, Center for Long-Term Care Reform:
Thanks to the Center’s Wisconsin Regional Representative for a timely reminder that it’s quite possible to drown in a river with a median depth of only three feet.
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