Where is Steve Guttenberg when you need him?

It has now being reported that the healthcare reform bill includes a brand new Long Term Care entitlement program that Americans will be automatically enrolled in by their employers. This new program is designed to provide flexible spending of $75 per day at retirement to assist with home health care services. Great idea right? Its a good thing to care for the senior population. But excuse me isn't that what Medicare is supposed to do?

This new program will require employers to withdraw at least $1500 per year from each worker's paycheck. That figure is based on the current estimate of $140 per month in premiums however some estimates show that the premiums will be closer to $240 each month. Apparently there is the option to opt out of the program however I do not know how true this is or how difficult it will be to accomplish.

I have said many times, I am no mathematician but this math seems fairly easy to comprehend.

American Worker Pays $1500 per year for Long Term Care (LTC) Insurance

American Worker Works for 40 years (if lucky enough to find a job)

American Worker contributes $60,000 over lifetime to LTC program

Average Cost of Nursing Home Per Year - $50,000

Average Cost of Home Health Care Per Year - $12,000

Percentage of Elderly in Nursing Care - 17%

Percentage of Elderly Receiving Home Health Care - 80%

So approximately 97% of the American public will be eligible for the $75 per day stipend as the reach age 65. That totals $27,375 per year per person for ninety-seven percent of the population as they reach age sixty-five. So we have a total pay-in amount (after forty years of working) of $60,000 and the average life expectancy in the US is eighty years. Doesn't that leave as many as 13 years of the average life expectancy unfunded under this entitlement program? And that doesn't even take into consideration people who would qualify for the program without paying in.

So.....I think that I am going to opt out of paying my share and use the money to hire Steve Guttenberg to dive for my cocoon since that may be my only hope!!!

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