Navigating Rising Long-Term Care Costs: Essential Insights for GEO Group Employees

Healthcare Provider Update: Healthcare Provider for GEO Group GEO Group, a prominent provider of correctional and community-based services, often relies on a variety of managed care organizations and healthcare service providers to address the healthcare needs of the populations they serve within correctional facilities and community programs. Specific partnerships may vary based on location and operational requirements, but they typically engage with well-established healthcare networks to deliver comprehensive medical, dental, and mental health services. Potential Healthcare Cost Increases in 2026 Healthcare costs are anticipated to surge significantly in 2026, driven by a convergence of factors including rising medical expenses and the potential expiration of enhanced federal premium subsidies under the Affordable Care Act (ACA). Many states are looking at premium hikes upwards of 60%, with over 22 million marketplace enrollees potentially facing more than a 75% increase in out-of-pocket premiums. This situation is exacerbated by ongoing trends of elevated hospital, physician, and drug costs, as well as systemic pressures from labor shortages within healthcare that collectively strain the financial landscape for both insurers and consumers alike. Understanding these impending changes is crucial for effective financial planning ahead of the 2026 healthcare landscape. Click here to learn more

As GEO Group employees approach retirement, it's crucial to address the need for long-term care.  Government projections indicate that nearly 70% of older adults will require some form of long-term assistance.   Despite this, a survey from the Kaiser Family Foundation reveals that many have not prepared for this eventuality.

The Cost of Long-Term Care

For employees at GEO Group, understanding the financial implications of long-term care is vital.  A Genworth Cost of Care survey  reports that the average annual cost for a private room in a nursing home exceeds $100,000, while home health aides average over $60,000 per year. Since Medicare does not cover these expenses, options such as personal savings, hybrid insurance policies, annuities with long-term care components, traditional insurance, or Medicaid (post asset depletion) become necessary considerations.

Family Impact

The financial and emotional toll of unprepared long-term care can disrupt family stability. This section offers practical tips for GEO Group employees on managing these potential costs.

Conventional Insurance for Long-Term Care

For GEO Group's workforce, obtaining long-term care insurance requires good health, timely application, and the financial ability to sustain premiums. However, only a small fraction of those eligible opt for this insurance.

The Price of Long-Term Health Insurance

Purchasing long-term care insurance during one's forties or early fifties can result in significantly lower premiums. With age, not only do premiums rise, but the likelihood of being denied coverage increases as well.

Methods for Cutting Costs

GEO Group employees might find financial relief in purchasing insurance early, choosing policies with a joint benefit option for couples, or opting for a longer elimination period to reduce premium costs. Annual premium payments also offer cost savings.

Benefits for GEO Group Employees

Some employers, may offer long-term care insurance as part of their benefits package, which often remains portable after employment ends.

Hybrid Insurance Policies

The market has seen a shift towards hybrid policies that combine life insurance with long-term care benefits. These are accessible but typically more expensive than standalone policies.

Long-Term Care Rider Annuities

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Annuities with a long-term care rider provide a hybrid solution that may suit some retirees better, offering payments irrespective of long-term care needs and usually featuring more lenient health requirements.

Independent Insurance

Affluent retirees might consider self-insuring, requiring substantial liquid assets to cover potential long-term care costs. It's important for GEO Group employees to plan for the tax implications of using retirement savings for these costs.

Health Savings Accounts (HSAs)

HSAs offer a tax-advantaged way to save for long-term care expenses, suitable for GEO Group employees with high-deductible health plans. These accounts allow for tax-free growth and withdrawals when used for qualified medical expenses.

Family Guidance

Many retirees will rely on family for care, as shown by the case of Nancy Yung, whose family's efforts epitomize the crucial role relatives play in long-term care.

In Summary

Planning for long-term care is akin to preparing a safety net for retirement, essential for mitigating the impact of rising housing and food costs. GEO Group employees should consult with financial advisors to explore all available options to secure their future financially. This planning is not just about risk management—it's about assisting in a stable and shielded path into retirement.