Who Pays for Long-Term Care

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Nationally, median annual private pay costs for nursing home services average 241% of an older person’s annual income. 

This ranges from 166% to 444% across states.

• Median annual private pay costs for home health services average 88% of an older person’s annual income, nationally. This ranges from 55% to 125% across states. 

• One in four people age 45 and over are not at all prepared financially if they suddenly required long-term care for an indefinite period of time. 

• Approximately 56% of individuals age 65 and older (as compared to adults 45-64) and more than half of adults with incomes over $25,000 annually were more likely to say they feel financially prepared for long-term care than their counterparts.

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The Centers for Medicare & Medicaid Services’ National Health Care Spending report for 2016 found that total healthcare spending in the United States increased 4.3% in 2016, reaching $3.3 trillion.

$30 billion: Long-term care expenditures in the U.S., 2000.

$225 billion: Long-term care expenditures in the U.S., 2015.

57.5%: Percentage of individuals turning 65 between 2015 and 2019 who will spend less than $25,000 on long-term care during their lifetimes.

15.2%: Percentage of individuals turning 65 between 2015 and 2019 who will spend more than $250,000 on long-term care during their lifetimes.

$341,840: Estimated lifetime cost of care for someone with dementia. 

 

That growth will increase total spending on SNFs and CCRCs to $196 billion in 2018, and $274 billion by 2024, according to the NHE report. By comparison, Medicare beneficiaries spent $160 billion on both SNF and CCRC facilities in 2017. For year 2018, the figure is set to be $167 billion.

Total Medicaid expenditures for 2016 increased 3.9% to reach $565.5 billion. In total, Medicaid spending made up 17% of the nation’s total health expenditures for 2016.
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$18,200: Median annual cost for adult day care (five days/week), 2017.

$45,000: Median annual cost for assisted-living facility, 2017.

$85,775: Median annual nursing-home cost, semiprivate room, 2017.

$97,455: Median annual nursing-home cost, private room, 2017.

$215,770: Average annual nursing-home cost, private room, Manhattan, 2017.

$51,100: Average annual nursing-home cost, private room, Monroe, Louisiana, 2017.

$23,394: Median annual income from all sources for individuals who are 65 or older.

$23,394: Median annual income from all sources for individuals who are 65 or older.

$39,823: Median annual income for households headed by people 65 or older.

3.8%: Five-year annual inflation rate in nursing-home costs, private room, 2017.

5.5%: One-year annual inflation rate in nursing home costs, private room, 2017.

19%: Percentage of long-term care costs that were paid out of pocket, 2013.

8%: Percentage of long-term care costs that were paid by private insurance, 2013. 

$263,200: Median household wealth for adults age 65 or older with no disabilities. 

$94,200: Median household wealth for adults age 65 or older with limitations on two or more activities of daily living. 

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