The current economic downturn has affected women's ability to plan and prepare for expensive long-term care costs such as nursing home stays, according to a survey released by America's Health Insurance Plans (AHIP).
The survey, conducted Nov. 6-24, 2008, by StrategyOne on behalf of AHIP, found that 60 percent of women say the economy has affected their ability to plan ahead for their healthcare needs.
"Women have been particularly hard hit by the current slowdown in the economy, and this has greatly hindered their ability to prepare for future long-term care costs," said AHIP President and CEO Karen Ignagni.
Nearly 20 percent of women surveyed believe they have long-term care coverage. However, only about 5 percent of U.S. adults over the age of 45 have purchased long-term care insurance, suggesting that many of the women surveyed incorrectly believe they have long-term care coverage.
Among those who said they do not have long-term care insurance, 42 percent said they would rely on government programs, such as Medicaid, to cover long-term care costs. Others said they would sell assets (31 percent), use their retirement savings (31 percent) or rely on family and friends (12 percent) to help with these costs. Twenty-three percent incorrectly believe that other insurance would provide assistance for long-term care costs.
Medicaid often provides coverage for long-term care services to qualifying low-income Americans, but many people have to spend their savings to the point of poverty in order to qualify for this assistance.
Sixty-one percent of women surveyed said they would be more likely to purchase long-term care insurance if they could deduct premiums from income taxes. Forty-two percent said they would be more likely to purchase if they could use non-taxable funds such as IRAs or 401(k)s to pay premiums.