The budget debates in Washington largely ignore the growing and biggest part of the budget—health care entitlement programs. Within the next few years, rising interest payments on the massive federal debt and higher general interest rates and inflation will necessitate reforms. Policymakers should enter that debate grounded in the facts. Several recent high-profile media stories are deeply problematic because they propagate false or one-sided narratives about long-term care (LTC), an issue of growing importance as baby boomers reach age 80 and family size declines.
The New York Times’ recent series Dying Broke perpetuates the false claim that LTC wipes out the savings of most middle-class Americans who need extended care, leaving them reliant on Medicaid. And a recent AP story stokes fear about Medicaid estate recovery, particularly states coming after the homes of people who have used Medicaid for their LTC.
The most important fact for policymakers: middle class and affluent people may easily access Medicaid for their LTC needs, without having to deplete their assets first. It is the poor and underprivileged who typically lose everything due to Medicaid’s spend down rules.
