Supply of Eldercare Services Will Not Be Sufficient to Meet Future Demand

In several earlier posts I have commented on how there is finally awareness of the growing unmet need for eldercare services nationwide. That need will soon grow to unsustainable levels as Baby Boomers are now reaching the age of Social Security eligibility (at a rate of more than 1 every 7 seconds for the next 20 years.

In one of my June posts to this blog, I cited some of the statistics that describe the huge scope of the "Eldercare in An Age of Scarcity" issue that is the focus of this blog. The collection of ABC reports-including some recommended videos-on the challenges that face those who are struggling to balance work and elder care issues are still available at their web site

Not only is the increasing demand for eldercare services and caregiver support services for their 80-90+ year old parents difficult to meet with our current eldercare service infrastructure, the deficit and debt levels of states and the federal governments to pay for such programs as Medicaid and Medicare require a reduction in spending on eldercare services at a time when the needs are growing at an out of control rate.

An article in the New Hampshire newspaper Foster's Daily Democrat, reports that assisted living and other facilities are scrambling to meet the anticipated demands and varying needs of the Baby Boomers

"The baby boomers are the 'Burger King generation,' and they are going to want assisted living their way," said Howard Chandler, executive director of the Taylor Community in Laconia, NH."

The Boomers may want it their way but for most they'll be lucky to be put on a waiting list for an underfunded and understaffed long-term care system. Assisted Living facilities are a far more attractive alternative to placement in a nursing home. However, few are publicly funded and the overwhelming majority of Assisted Living units cost an average of $3500-$6000 per month depending on the size of the unit and the amenities provided by the facility. The majority of these units are only available to those who can pay for them out of their own resources.

In September, the U.S. Department of Health and Human Services announced it was dedicating $5.7 million in matching grant funds for nursing home diversion programs. While this sounds like an expansion of services, all it is a shift of funds away from already underfunded nursing homes to pay for a modest amount of home care services. 4 -6 hours of daily home care costs an average of $80-$100.

"But no matter how the money is allocated, Medicaid still doesn't reimburse the full cost of services, Pohlman said, noting that Maine's Medicaid shortfall nearly tripled from 2004 to 2005, from $10 million to $27 million." According to the Daily Democrat.

Some in New Hampshire are skeptical about the effort to divert patients from nursing homes.

Strafford County Administrator Ray Bower, whose duties include overseeing the Riverside Rest Home in Dover, said while the number of seniors is expected to increase in New Hampshire, the number of nursing home beds won't because of a moratorium on adding new nursing home beds in the state. .


Source: http://www.fosters.com/apps/pbcs.dll/article?AID=/20071111/GJNEWS_01/711110059

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