One in Four American Adults Affected by Long-Term Care in 2022
In recent years more Americans have become aware of the consequences of long-term health care. While most people understand the problem, many still deny that it may happen to them. However, a recent survey shows precisely how big an issue long-term care is for American families.
According to a recent nationwide study by the think tank Nexus Insights, which focuses on older persons, 24% of American adults aged 50 and older said they or a loved one needed long-term health care in the previous year. The respected NORC at the University of Chicago carried out the study.
The findings illustrate the widespread need for information and guidance about long-term health care services among an aging population and their caregivers, a need that experts say will grow exponentially in the future.
Anxiety and Frustration
Most older adults said selecting long-term health care caused anxiety (53%) and frustration (52%). In contrast, few said they felt confident (23%), at peace (23%), or happy (14%) while making a choice.
The poll results, according to researchers, point to a need for more consumer-friendly materials to aid families in navigating care options. While the survey didn't discuss directly at planning, the bottom line is adults are not prepared for aging and the consequences long-term health care will have on their families and finances. There is an overwhelming desire for information.
Emotional Twists and Turns
Robert Kramer, founder, and a fellow of Nexus Insights, says that deciding about long-term care is "a maze full of emotional twists and turns, dead ends, and setbacks."
The lack of a consumer-friendly system to help families navigate the staggering array of decisions that must be made quickly during a healthcare crisis boosts families' stress. It can result in making decisions that lead to poorly coordinated, lower-quality care.
The poll found that older individuals believed it was crucial to have more knowledge about the costs of care, how to pay for them (69%), and the various kinds of long-term care services offered (63%).
Finding Care Not Easy
Early this year, Nexus Insights published a report describing the frequently frustrating and perplexing process many older adults go through when choosing long-term health care for themselves or a loved one.
The report called for creating a national long-term care navigation hub to assist older persons in learning about their options. This includes evaluating care options, choosing the best one for them, connecting with that option, and regularly assessing their requirements as their health and financial circumstances alter.
These four LTC NEWS guides can be helpful for families:
According to Kramer, navigational resources are urgently needed to help the aging Baby Boomer generation, many of whom are already caring for elderly parents but will eventually require long-term care as well.
Cost of Care is Expensive and Growing
Many families are unaware that most long-term health care costs are the care recipient's responsibility. Traditional health insurance, including Medicare and supplements, pays for a limited amount of skilled care services and nothing toward "custodial care."
Long-term health care costs have many variables, including the location of care, types of services required, and where someone lives. The cost is increasing dramatically and will continue to do so in the decades ahead.
LTC NEWS Cost of Care Calculator
Medicaid will pay for long-term care services only if the care recipient has little or no income and assets. Long-Term Care Insurance will pay for comprehensive services, including in-home care, but these policies must be purchased when someone is younger and has reasonably good health.
In other words, LTC Insurance cannot be purchased when "someone needs care," but only before.
What is Underwriting? How Does Current Health Impact Ability to Obtain Long-Term Care Insurance?
Most states participate in the partnership program authorized by the federal government decades ago. These can be very helpful LTC Insurance policies that provide dollar-for-dollar asset protection.
What Is the Partnership Program in Long-Term Care Insurance?
Crisis Decision Making is Hard for Families
The fact many people are unaware of planning options shows the lack of available information -- or denial of that information.
Caroline Pearson, senior vice president at NORC at the University of Chicago, who also serves as a Nexus Insights fellow, says the current long-term care system is nearly impossible to navigate and provides little-to-no support for families making life-and-death decisions.
Most people will eventually have to make decisions about long-term care for ourselves or a family member, so creating a consumer-friendly long-term care navigation system should be high up on the nation's list of to-dos.
Older adults and their caregivers, often untrained family members, frequently must make crucial decisions quickly when facing declining health and aging issues. Often no planning or Long-Term Care Insurance is in place, creating a family crisis.
Action must be taken when a loved one's existing living environment is unsafe or inappropriate. When there is declining health, mobility problems, dementia, or frailty, care must be provided. The question becomes who will provide the care and how it will be paid for. Often, the family must step in to be a caregiver.
LTC Insurance Pays for Quality Care Options
Family caregivers are usually temporary, as juggling a career, family, and caregiving is not easy, to say the least. Quality of care is also a concern. For those who did plan, Long-Term Care Insurance provided the tax-free resources to pay for quality care services in the desired setting.
In 2021, the top insurance companies paid over $12.3 Billion in benefits. While those in their 40s and 50s can get coverage fairly easily, once you get into your 60s and beyond, pre-existing health problems often become an obstacle.
Experts recommend planning for long-term health care prior to retirement, but for those already in declining health, there are few options. A family discussion will be helpful before the crisis starts.