Long-Term Care Challenges and Solutions for Aging Americans

The Growing Need for Long-Term Care

AARP reports that the population age 85 and older—the group most likely to need long-term care—will more than triple between 2015 and 2050. This trend highlights an urgent challenge. Leaders must rethink institutional care, improve affordability, and create innovative options for Americans who want to age in place.

The Milken Institute’s 2020 Future of Health Summit recently addressed this issue. Experts agreed that improving long-term care is now a top priority for the U.S. healthcare system.

Startling Statistics on Long-Term Care

As America ages, 70% of adults over 65 will need long-term care at some point. This statistic reflects millions of seniors who will require affordable support. Unfortunately, the private long-term care insurance market has shrunk drastically, leaving fewer options.

To address this crisis, the Milken Institute Center for the Future of Aging is working through its Financial Innovation Lab. The group is recommending strategies to expand affordable long-term care for middle-income families. Nora Super, senior director of the Center and executive director of the Alliance to Improve Dementia Care, highlighted three major solutions:

• Medicare Advantage Demonstration Project – Large-scale testing of home-based interventions and technology to reduce costs and improve outcomes.
• Integrated Care Models – Expanding flexible, low-cost programs for people with complex needs.
• Insurance Solutions – Identifying ways to combine private and public options to extend coverage for the middle class.

The Role of Medicare Advantage

Medicare Advantage has grown over the past 20 years, offering flexibility for participants and the ability to test new ideas. It also brings technology into the home to prevent costly long-term care stays. However, these programs remain small and have not yet scaled nationwide.

Super points out a critical gap: “Medicaid is the safety net for the nation, but there is nothing for middle-class people. Costs are exorbitantly expensive.” Once, more than 100 private insurers offered long-term care coverage. Today, only about a dozen remain.

The Personal Cost of Inaction

At the Milken Summit, David O’Leary, president and CEO of U.S. Life Insurance Companies and Genworth Financial, explained: “This is a problem facing the country…we’re not prepared for it. We can no longer ignore this. This is personal to everyone.”

Currently, the long-term care industry covers less than 10% of those in need. The average claim costs around $200,000. For many older adults, a healthcare crisis remains the number one reason for declaring bankruptcy.

The Strain on Families and Medicaid

While policymakers and professionals debate solutions, middle-class families struggle. Many face impoverishment as they try to cover immediate long-term care needs. The options often come down to costly institutions, stretched Medicaid programs, or unpaid family caregivers.

Medicaid, already overburdened, struggles with long waiting lists and substandard facilities. Infection control problems and quality concerns make it an unreliable option for many.

Planning Ahead to Protect Your Assets

The reality is clear: waiting for government or industry reforms is risky. Middle-class Americans must plan now to protect their savings and homes from the high cost of care. Medicaid planning and elder law strategies can help families prepare.

At Aging in Maine, we help seniors and their loved ones develop long-term care plans that protect both assets and dignity.

📞 Call us today at (207) 848-5600 to schedule a confidential consultation. Let’s prepare together for the care you or your loved one may need.