How ICE Raids Could Put Older Americans’ Finances at Risk
No matter what your politics are about the southern border, there is a harsh statistical reality that is at odds with your family’s future. You may not see the connection right away, but the continued pressure of strict immigration policies directly threatens something personal: the health and safety of your elderly parents.
According to a recent MarketWatch report, America is facing a critical shortage of direct care workers. We are talking about home health aides, nursing home workers, and personal care aides who bathe, feed, and monitor the elderly.
The people who do this tedious, low-paying work are a diverse immigrant population. When you squeeze that workforce, the entire senior care system teeters on the brink of collapse.
The biggest math problem is ignorance
We have a rapidly aging population. Data from the US Census Bureau shows that by 2030, all baby boomers will be 65 or older. That means one in five Americans will reach retirement age.
This displacement of people is creating an unprecedented demand for care. However, we do not have the space around the domestic workers needed to host them. Americans simply don’t mix these jobs. The job is physically demanding, emotionally draining, and the pay is notoriously expensive.
Because domestic workers avoid these roles, immigrants have since stepped in to fill this void. According to the health policy research organization KFF, immigrants make up 28% of direct care workers and a third of all home care workers. If we close the door on it, there is no backup plan. No one is waiting in the wings to take over.
What does this mean for your wallet
If you understand basic economics, you know what happens when demand rises and supply plummets. Costs are through the roof.
We are already seeing long-term care costs rise. If nursing homes and health centers can’t find workers, they have to raise wages wildly to attract domestic workers, assuming they can find them at all. Those costs are passed on directly to the consumer.
Don’t think the government will foot the bill. Medicare generally does not pay for long-term care. If your mom needs a home health aide to help her get dressed and use the toilet safely, that money comes out of her savings, or worse, yours.
The human cost of scarcity
The financial blow is bad enough, but the human cost is terrifying. When child care centers are understaffed, mistakes happen.
Patients wait for hours to get help to get out of bed. Medicines are skipped. The dangers of falling are multiplied. In the case of home care, severe shortages mean that agencies may not have a caregiver available to send to your parent’s home.
You are left with an impossible choice: quit your job to become a full-time caregiver, or leave a vulnerable loved one to fend for themselves.
How can you protect your family right now?
You can’t change national immigration policy or magically create more caregivers, but you can prepare your own family for the fallout.
1. Start the conversation early: Don’t wait for a medical emergency to find out how your parents will be cared for. Ask them what they want and check what they can afford.
2. Look for long-term care insurance: Premiums are expensive, and you need to buy them before your life goes down. However, having a policy can be the difference between getting professional help and bankruptcy. (Related: See Ask Stacy: Should I Buy Long-Term Care Insurance?)
3. Check out other places to stay: Foreign real estate is making a comeback for a reason. Home sharing allows families to pool resources and share the burden of care.
4. Fund your retirement: The best gift you can give your children is financial independence. If you’ve saved a lot of money, you’ll need more options to purchase premium care if you absolutely need it.
We are facing a major storm in terms of elder care in this country. Strict immigration policies only accelerate this problem. The government isn’t coming to bail you out, so it’s entirely up to you to make a plan before trouble arrives at your front door.
