As the baby boomer generation ages, the number of seniors in need of long term care is projected to rise dramatically in coming years. There are currently about 15 million Americans who require long term services and support due to aging or living with a disability. That number is expected to grow to 27 million by 2050 according to the AARP. With increased life expectancies and a growing senior population, the demand for long term care will continue to outpace supply for the foreseeable future.
Types of Long Term Care Services
There are a variety of long term care services available to assist those who require help with activities of daily living or supervision due to medical conditions or advanced age. Traditional options include:
- Nursing Home Care: Provides 24-hour skilled nursing and personal care in a residential facility. Nursing homes offer short or long term rehabilitation as well as long term custodial care.
- Assisted Living Facilities: These residential communities provide housing, personal care assistance, and help with activities of daily living for seniors and people with disabilities who need more support than is available from home health aides but less nursing than a skilled nursing home.
- Home Health Care: Skilled nursing, therapy, personal care aides, and other services are brought into the home on a part-time or intermittent basis. Home health agencies employ nurses, therapists, home health aides, and other professionals to provide in-home care.
- Adult Day Services: Provide structured daytime activities and assistance with activities of daily living in a community-based center. This gives family caregivers a respite from full-time care duties at home.
Newer Options Emerge for Long Term Care
In recent years, innovative long term care solutions have emerged that aim to offer more affordable options and a higher quality of life compared to institutional facilities. Alternatives gaining popularity include:
- Continuing Care Retirement Communities (CCRCs): CCRCs provide independent living, assisted living, and nursing home care on the same campus. Residents can “age in place” without relocating as needs change.
- Memory Care Communities: Specialized assisted living facilities for those with Alzheimer's disease or related dementias that offer a safe, structured environment and programming for cognitive impairment.
- Home and Community Based Services (HCBS): States are expanding Medicaid funding for home health care, personal care, adult day centers, respite, and other supportive services to help seniors remain in their homes.
- Technology-Assisted Long Term Care: Medical alert systems, remote patient monitoring, medication dispensers, and other tech helps enable independent living for longer periods.
The High Costs of Long Term Care
While demand rises, the high costs associated with long term care present a major challenge. The average private room rate in a nursing home now tops $100,000 per year according to a report from Genworth, though costs vary significantly by region. Assisted living can range between $3,600 to $4,500 per month on average nationwide.
Most seniors do not have enough financial resources to cover an extended nursing home stay relying on out-of-pocket funds or long term care insurance alone. Medicaid has long been the primary payer for nursing home care nationally. However, Medicaid eligibility and coverage are limited, and the program faces its own financial pressures. Increasingly, more attention is paid to developing community-based options and partnering with private insurers to help finance long term care.
The Future of Long Term Care
Looking ahead, the long term care industry and policymakers face immense challenges in meeting growing demand as the population ages. Cost containment through alternative delivery models, expanded home and community-based services, and greater use of technology are areas receiving the most focus. Long term care financing also requires innovative solutions, such as developing more affordable private insurance products or supplementing Medicaid through public-private partnerships. How well these challenges are addressed will significantly impact the future accessibility and affordability of long term support as needs continue to increase in the decades to come.
