Elder Home Health Care

By: Preferred Care At Home

About 70% of women aged 80 and older have two or more common chronic conditions, while 53% of men have two or more common chronic conditions. Chronic conditions include arthritis and diabetes and require ongoing medication and limit physical activity. Aging Americans require a variety of services that could be financially demanding. Basic services include companionship, meal preparation, light housekeeping, dress/hygiene assistance, medication reminders, physical therapy assistance and transportation.

The elderly population is rapidly growing putting pressure on the long-term private care options. In 2004, the U.S. market for home care totaled $53.8 billion, having grown at an annual rate of 8.6% from the 1999 level of $35.6 billion. The home care market is projected to grow at an annual rate of 9.2% between 2004 and 2009, reaching $85.8 billion at the end of this period. This increase in revenue will be driven by the increasing elderly, based upon retirement of the baby boomers, and ongoing initiative to shift from expensive institutionalized nursing care to home-based healthcare.

Home health is the solution. According to the Congressional Budget Office, in 10 years spending on the older Americans will reach $1.8 trillion per year, nearly half the federal budget, compared to 35 percent in 2000. By 2015, Medicare will be growing at 8 percent per year, and Medicaid at 9 percent. Dramatic growth in Medicare and Medicaid costs is being driven at least in part by higher institutional expenditures. While Medicare was experiencing rapid growth in the last decade, home health reimbursement dropped by more than 50 percent. As a percentage of total Medicare outlays, the home health benefit declined from 7 percent in 1993 to 4 percent in 2003. Studies continue to show that home healthcare saves money and results in healthier patient outcomes.