Catastrophic Care Costs Crippling Boomers and Gen X, And They Are Still Rising

In the midst of a soaring economy, long-term care costs for seniors continue rising. Laws are ensuring that Baby boomers and Gen X are forced to pick up the tab. Here’s how it could affect  Americans. 

Growing Worry 

There’s a growing worry that scarecrow laws regarding long-term health care can also influence middle-aged Americans. 

Overwhelming Aging Population 

According to America’s Health Rankings, 17% of Americans are 65 years and older. 

State With Highest and Lowest Senior Population

Maine has the largest senior population at about 22% compared to Utah, with only 12% of seniors. 

Overwhelmingly High Senior Population by 2030

The United States Census Bureau said with statistics based on their 2020 census that there are over 70 million baby boomers in America. By 2030, the boomer population would at least be 65 and older. 

Why So Many Boomers? 

The generation cohort of boomers came about after the end of WWII, and during the years between 1946 and 1964, an increase of babies were born. This increase in childbirths “birthed” the name “baby boomer.”

Juggling Costs For Seniors 

With so many seniors aging and having to depend on their long-term care plans, it has become difficult to keep up with the payments. In fact, the rates are not standing still, and the bill for long-term care continues to soar.   

The Law of The “Scarecrow”

The law of the scarecrow, aka “scarecrow law” or “sleeper law,” is usually a law in place but not always enforced. 

A Law Dating Back Six Decades 

An article published by Forbes mentions a law established in North Carolina in 1955 that still applies today. 

What Does the Law Say? 

Forbes quoted the old scarecrow law, which states that “without reasonable cause, neglect to support his or her parent or parents if such parent be sick or not able to work and have reasonable means to maintain or support themselves.”   

Some Work a Loophole 

According to Forbes contributor, lawyer, and nurse Carolyn Rosenblatt, some people create the “needy” level. She said that some seniors work in a way that qualifies them to receive help from Medicaid by depleting all their assets. 

Giving Valuable Possessions Away

Rosenblatt mentioned that seniors will give their things away to the point that they have nothing and no means, and if it’s done early enough, Medicaid will assist. 

Last Minute Changes Don’t Always Work

Rosenblatt also said that the timing of this procedure needs to be precise. If the senior individual only starts in the last few years of being eligible for Medicaid, this loophole doesn’t always work for them. 

Financial Future on the Rocks for Middle-Aged

An article by ABC News spoke of a case where a baby boomer man was charged the bill for his senior mom’s medical costs, which amounted to $93,000. These were her nursing home expenses. 

The Law Using The Scarecrow Law To Full Effect

The Pennsylvania court used the scarecrow law against the middle-aged man, 47-year-old John Pittas. The situation came to this ruling because Pittas’ senior mother’s healthcare retirement plan wasn’t approved on time, thus placing the responsibility on him.

Appeal to No Effect 

Even though Pittas appealed the case, the court still ruled in the senior care home’s favor, where his mom was staying after suffering a stroke. Pitta’s mother was earning $1,000 in state income, but it wasn’t enough to pay her bills. 

Inflation Rates Are Crippling Finances 

The inflation rate has affected many aspects of the American economy, and as a result, it affects American families.

Up By 14%

For Boomers and Xennials responsible for taking care of their aging parents according to the scarecrow law, keeping up with the increase of 14% is a massive hole to fill. 

The Domino Effect 

If middle-aged children didn’t take care of their senior parents’ nursing home bills, they could face the same consequences as John Pittas. The lack of finances affects not only the senior parents in care homes but also their children and grandchildren. 

Filed Paperwork on Time Could Save Money 

Julia Beckert, a spokesperson for the senior care home where Mir Pittas’ mother was cared for, said it helps when the paperwork is submitted in time for processing. 

Plan Ahead

Planning can help take the guesswork out of the process when the time comes. As the spokesperson for the care home mentioned, submitting paperwork on time can help ease the process and ensure payments are made effectively. 

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