Caring For The Kids -- And Mom And Dad, Too
At the end of her life my grandmother, Iva Miller, lived in a nursing home. While she and my grandfather had never been people of means, she made sure to put away savings throughout her long career as a teacher. She was a proud woman and wouldn't let us do what so many elderly have to do: spend down her savings, so she'd qualify as indigent and get on the federal Medicaid program for the poor. You see, Medicaid picks up more medical costs than Medicare. I still have such sad memories of the few years she spent in that nursing home. But she always made sure to put a smile on her visitors' faces, sharing with the nurses and other caregivers all the "goodies" we'd bring.
All those memories came flooding back while we worked on our "Caregiver" story. It's about the emotional and financial strain faced by the so-called Sandwich Generation -- most of them baby boomers -- taking care of their parents and their children at the same time. Today there are 75 million baby boomers, and about one-third of them say they are helping their parents financially. Think about it. Just as you are preparing for those painful college tuition payments, Mom and Dad may need you, too.
What struck me was how unprepared so many of us are for the possibility that our parents may need us to help them out when they get to that point in their lives. Not only unprepared, but unaware. In a recent poll more than half of those surveyed said they thought Medicare paid for long-term care or nursing-home care. Well, it doesn't. In fact, about 50% of the elderly who end up in a long-term care facility pay for it themselves -- or their children help pay for it.
And just navigating the many different Medicare plans can be a nightmare. And remember this is the insurance plan your parents have paid into all their working lives. It was supposed to be there when they turn 65 to help pay doctors bills, hospital stays, and now some prescription drugs. Why does it have to be like reading a medical textbook in a foreign language to figure out what your benefits are and how you receive them?
The lesson I learned from reporting this story: Start planning now. And even though it's a delicate subject, talk to your parents about their savings plan, if they have one. If not, you yourself may need to start saving for the time when your parents might need you to step in and help pick up the slack. For so many of us, it's the least we can do for them.