This is a significant factor in planning for our long-term care needs. Inflation is a major factor as it is important that your long-term care plans keep up with the increasing cost of care.
Typically, inflation in health care has been about double the overall annual inflation rate.
With the demographic impact of the baby boomers and increased longevity in our aging population, current projections are that inflation in health care, especially in long-term care, will surpass the general inflation rate.
History clearly shows that every market the baby boomers touch sees dramatic price rises due to supply and demand. Examples of this phenomenon were the enormous increases in the cost of homes, new automobiles, and a college education.
Due to the financial problems with Social Security, Medicare, Medicaid, and the looming impact of a rapidly aging population, the Federal Government is now offering tax incentives to individuals and businesses that purchase private Long-Term Care Insurance.