Your Financial Future:
A Long-term Care Overview
Today, two-thirds of Americans over age 65 will need long-term care in their lifetimes. That number is expected to increase by an estimated 138% (19 million) over the next 50 years.
- Total spending on nursing facility and home health care has almost doubled.1
2000: $123.1 billion 2005: $207 billion
- Public spending, including Medicaid and Medicare makes up a significant portion of the total nursing and home health care spending. 1
2005: $149 billion (72%)
- Total national expenditures on nursing home care in 2005 were $130 billion. That number is projected to rise to $178.8 billion by 2012.1
- As of 2009, on average, a private room in a nursing home costs $203 per day or $74,208 per year.2
- In 2010, 61% of workers said they were either not too confident or not at all confident in their ability to pay for long-term care.3
- In 2005, around 7 million individuals held long-term care insurance policies.1
- Purchasing long-term care insurance at age 65 rather than at age 55 can cost twice as much in yearly premiums.
1. Houser, Ari N.. “Long-Term Care Insurance,” AARP Public Policy Institute. Oct. 2007.
2. “Cost of Care Survey,” Genworth Financial. April 2009.
3. “2010 Retirement Confidence Survey (RCS),” Employee Benefit Research Institute. 2010.