Out-of-pocket segment in the long term care market will account for USD 491 billion by 2027 owing to the growing influx of private health insurers and increasing preference private LTC insurance servicesA new study from Global Market Insights Inc. reviews the current and future growth within the long term care market. Request for a sample of this research report here.
SELBYVILLE, Del, Oct. 27, 2021 /PRNewswire/ — The long term care market size is anticipated to record a valuation of USD 1.61 Trillion by 2027, according to the most recent study by Global Market Insights Inc. Technological developments with incorporation of advanced healthcare IT modalities in the long term care (LTC) services will propel the adoption of these services in the coming years. The current and emerging modalities are increasingly being used in the community or acute care settings. These include the use of Electronic Medical Record (EMR) systems, medicine trackers, fall & motion sensors, and resident Wi-Fi among others.
The emergence of Personal Emergency Response Systems that are widely recommended for an elderly adult with a medical condition or disability. This device is intended to be used in an emergency situation and alerts the health responder during an emergency. Similarly, the advent of wireless home monitoring has revolutionized the elderly care services, especially in home care settings. This system can be used in patient homes, apartments, or other healthcare facilities, thereby providing greater degree of freedom to the patients. Such technological advancements are extensively being used by the care providers as well as patients. These technologies facilitate daily tasks & activities, provide better control, and improve the quality of life in nursing homes and assisted living facilities.
The ongoing technological advancements and research activities have led to advent of person-centered LTC technology that improves their functionality and quality of life. This technology integrates biosensors, activity trackers, information fusion systems, and actuator networks among other technologies. Furthermore, the current developmental activities and supportive government policies are further driving the incorporation of technology in these services.
Home Healthcare & Female Segments
The home healthcare services segment in the long term care market is projected to reach more than USD 490 billion by 2027 owing to the rising preference for affordable home healthcare services and favorable government initiatives. Home healthcare refers to the assisted living services provided at home by nurses, therapists, and others. Another type of long term care in homecare settings is the hospice care for terminally ill people. These services are usually covered by Medicare reimbursement coverage. Due to coverage offered by Medicaid for these services, they are high in demand. Moreover, supportive programs including the EPD Waiver Program offers extensive range of services to aid the older adults and individuals with physical disabilities in homecare settings.
The long term care market for 65 to 74 segment was valued at USD 328 billion in 2020 and is estimated to expand at 7.3% growth rate through 2027. This substantial segment growth is attributed to the rapidly aging population and surging prevalence of chronic & disabling conditions among the people aged 65 to 74. The prevalence of multiple chronic conditions further proliferates with age and accounts for a significant share in healthcare expenditure. A similar trend is observed in India with notable proportion of elder adults suffering from multiple chronic conditions. The Longitudinal Ageing Study in India (LASI) study was conducted by the Union Ministry of Family and Health Welfare.
The female segment in the long term care market will cross USD 966 billion by 2027 due to significant female population affected with chronic and disabling conditions. According to the Journal of Gerontology, in 2020, a cross country study in countries including the U.S., Korea, Mexico, China and other countries indicated high prevalence of disability among women.
The long term care market for out-of-pocket segment is slated to exceed USD 491 billion by 2027 on account of the rising influx of private health insurers and increasing preference private LTC insurance services. Majority of the care seekers that initiate their adult care from nursing homes and pay their expenses through their own pockets. With spending their own personal resources, these people seeking care at nursing homes eventually become eligible for Medicaid reimbursement.
Long Term Care Market Across The Sea
Japan long term care market size will reach USD 134 billion by 2027 owing to significant geriatric population, the surging prevalence of chronic conditions, and presence of supportive long-term care insurance (LTCI) system in the country. Japan’s population is termed as ‘super-aged’ society, with over 28% of the population aged 65 and above as of 2019. The projections suggest by 2036, people aged 65 and above will account for one third of the population.
With rising geriatric population, chronic conditions are poised to surge. Furthermore, the presence of long-term care insurance (LTCI) system in Japan to address the needs of aging population and individuals with disabilities is set to benefit the market. Individuals with LTCI service certification are allowed to use facility services, homecare services, and community-based services based on their physical & cognitive impairments.