Will You Need Long-Term Care? Here’s What the Statistics Say

As the number of Americans living past 85 is expected to more than double in the next 25 years, the demand for long-term care is set to surge. Long-term care involves assisting older adults with daily activities such as grocery shopping, meal preparation, dressing, and personal hygiene. According to the U.S. Department of Health and Human Services, as many as 7 in 10 older adults will require some form of assistance.

Jesse Slome, the executive director of the American Association for Long-Term Care Insurance, highlights the increasing likelihood of needing long-term care for those who live long lives. This care can range from unpaid, part-time caregiving by family members to the costly option of a nursing home.

Despite media coverage on the impending long-term care crisis, many adults still underestimate their individual risk of needing extensive care as they age. A report from the Center for Retirement Research at Boston College reveals that over half of adults aged 65 and older will have high-intensity care needs for at least a few months. This level of care includes assistance with two or more daily activities or a dementia diagnosis.

The risk for high-intensity care varies based on education, race, and gender. Women are more likely to need long-term care than men, and Black and Hispanic adults are more likely than white adults to require high-intensity care. Additionally, individuals with college degrees are less likely to need extensive care compared to those with a high school diploma.

When it comes to paying for long-term care, there is a common misconception that Medicare covers nursing home expenses. In reality, Medicare does not pay for long-term care. Most long-term caregiving is provided by unpaid family members, with only a small percentage covered by professional care services. The cost of professional care can be significant, with in-home health aides and nursing homes costing thousands of dollars annually.

Medicaid is the primary source of payment for long-term care, but eligibility is limited to lower-income individuals with minimal assets. Long-term care insurance is another option, but only a small percentage of the population has such coverage due to the associated costs.

Premiums for long-term care insurance are based on factors like age, gender, and health history. It is recommended to start researching insurance options in your 50s, as premiums increase with age and denial rates rise as you get older.

In conclusion, planning for long-term care is essential as the aging population continues to grow. Understanding the potential need for extensive care and exploring payment options like insurance can help individuals prepare for the future.

References:
– KFF survey: https://www.kff.org/health-costs/poll-finding/the-affordability-of-long-term-care-and-support-services/
– Center for Retirement Research report: https://crr.bc.edu/do-households-have-a-good-sense-of-their-long-term-care-risks-2/
– Genworth Financial: https://www.genworth.com/
– LIMRA estimates: https://www.limra.com/en/newsroom/industry-trends/2024/limra-five-reasons-to-discuss-long-term-care-insurance-options-with-your-clients/