Senior Citizen Benefits Costs Soar

According to Dennis Cauchon, Senior benefit costs rise 24% since 2000, usatoday.com, Feb. 14, 2008:

The cost of government benefits for seniors soared to a record $27,289 per senior in 2007, according to a USA TODAY analysis.

That’s a 24% increase above the inflation rate since 2000. Medical costs are the biggest reason.***

USA TODAY used a variety of government data to calculate the cost of providing Social Security, medical benefits and long-term care to an aging population.***

Findings include:

• Medicare experienced the most explosive growth from 2000 to 2007. The Medicare prescription drug benefit, started in 2006, accounts for about one-fourth of the increase in Medicare, which provides health benefits for people 65 and older.
• Long-term care costs per senior have declined slightly in the last three years because of a move away from nursing homes to less-expensive home care.
• The cost of senior benefits is equal to $10,673 for every non-senior household.
• About 35% of the federal budget is spent on senior benefits, up from 32% in 2004.

Special thanks to Neil E. Hendershot, Esq. (Attorney at law, Goldberg Katzman, P.C., Adjunct Professor, Widener University School of Law) for bringing this article to my attention.  You can read more on Neil’s blog at PA Elder, Estate & Fiduciary Law Blog.