Facts and Statistics on Long Term Care

1.  The National Association of Health Insurance Advisers states that: Disability insurance and Long Term Care insurance do not cover the same things.  In-fact, disability insurance provides you with income if you were to become injured or sick and cannot work. Disability insurance is not designed to pay and cover long term care expenses. 

2.   The Georgetown University Long-Term Care Financing Project found:  It is estimated that approximately 49% of people 65 and older will need Long Term Care at some point in their lives, and that 72% will use home health care services.

3.  The U.S. Department of Health and Human Services and Human Resources and Services Administration state: In most cases people will have to spend all or almost all of their assets to qualify for Medicaid benefits.  While the maximum level of assets you’re allowed to keep varies from state to state, people are required to spend down assets to a significantly before they can qualify for Medicaid benefits.

4.  Congressional Budget Office conducted a study, “The Cost and Financing of Long-Term Care Services before the Subcommittee on Health Committee on Energy and Commerce U.S. House of Representatives, Table 1.”  The study found that Medicare is not the primary funding source for most senior citizens' long term care costs.   Medicare spending accounted for 16% of the total Long Term Care expenditures in 2004.  Medicare primarily covers acute care, it pays only for limited stays in post-acute skilled nursing care facilities and home health care of about 20 days maximum.

5.  The Georgetown University Long-Term Care Financing Project also found: Most long term care is not provided in nursing homes and one might think.  In-fact 80%of all Long Term Care is actually received at home or in community settings.  If you stop and think about it, people are simply more comfortable at home so it makes sense. 

6.  The Official U.S. Government Site for People with Medicare, www.medicare.gov; Medicaid and Long Term Care, “What is Long Term Care?”  Medicaid does not cover long term care services received in the home.  Medicaid mainly covers long term care services that are received in nursing homes. In the few states where Medicaid does cover home health long term care services, it is done on a limited basis mainly for physical therapy and rehab services.

7.  U.S. Department of Health and Human Services found: The average length of stay in a nursing home about 2.9 years and of those people admitted to nursing homes, 50% stay less than six months, and only 10% stay three or more years.

8.  The Georgetown University Long-Term Care Financing Project: Almost 40% of the people receiving long term care are under the age of 65. 

9.  John Hancock 2005 Cost of Care Survey, conducted by Harris, Rothenberg International, LLC, 2005 found: On average, a one-year stay in a nursing home in the United States costs about $71,000.10.

When considering if long term care insurance is right for you and your family, it helps to be logical and not emotional when making this important decision.  The emotional side of most people thinks that: hey, I feel great now and I'm in great shape.  The logical side can take a step back and simply look at the statistics and see the risk for what it is and the reality that 50% of the people who make it to 65 will need long term care in the future.  At LTCtree we help invest people's money as well so with that experience we truly try and help our clients find the proper balance between too much insurance and not enough.  We typically do not recommend the lifetime policies that are the most costly, we usually recommend that people insure the majority of the risk which is 3-4 years and keep that "extra" money working for you in your investments.  Take a few minutes and fill out the form below to get your quotes today.