Women Are at a Higher Risk of Needing Long-Term Care
Washington, D.C., (December 2014) — A new report from the American Council of Life Insurers (ACLI) finds that private long-term care insurance can save Medicaid $47.7 billion and reduce consumers’ out-of-pocket expenses to pay for care by $69 billion.
“Who Will Pay for Our Long-Term Care” also shows that women are at a higher risk of needing long-term care than men.
“After age 65 women are far more likely than men to need the services of a nursing home, outnumbering men about 3 to 1,” the report says. “A typical elderly female resident spends 2.6 years in a nursing home, compared to 2.3 years for a typical male.”
The report emphasizes the need for people to plan for the high and rising cost of long-term care. “Since 2005 the cost of nursing home care has grown by 4.5 percent annually, compared to an overall inflation rate of 2.5 percent,” the report says. “If this trend were to continue, the average cost of a one year stay in a nursing home will increase from about $81,000 per year in 2014 to $146,000 in 2030.”
Other long-term care services may cost less but are still expensive. Non-certified home health aides typically charge $20 per hour; the average base rate for the services of an assisted living facility is $42,000; and one year of adult daycare services is $16,900.
Living with dignity
Long-term care insurance can help people pay for the cost of care in a setting that allows them to live with dignity and without being a financial burden on their families.
It can be purchased as an individual policy or through a group plan offered by an employer. Long-term care insurance also can be added as a rider to a life insurance policy or an annuity contract.
ACLI’s website features information for consumers in English and in Spanish on long-term care and long-term care insurance. Consumers should consult with a trusted insurance or financial advisor about the long-term care insurance options that are right for them.
Follow ACLI’s Twitter account #ACLINews for more findings from “Who Will Pay for our Long-Term Care.”
The American Council of Life Insurers (ACLI) is a Washington, D.C.-based trade association with more than 300 member companies operating in the United States and abroad. ACLI advocates in federal, state, and international forums for public policy that supports the industry marketplace and the 75 million American families that rely on life insurers’ products for financial and retirement security. ACLI members offer life insurance, annuities, retirement plans, long-term care and disability income insurance, and reinsurance, representing more than 90 percent of industry assets and premiums. Learn more at www.acli.com.
