Title | long-term services and supports for older Americans: risks and financing |
Publication Type | Report |
Year of Publication | 2016 |
Authors | Favreault, M, Dey, J |
Institution | US Department of Health and Human Services, Office of the Assistant Secretary for Planning and Evaluation |
Keywords | Finance, Finances, Government, Long-term services and supports |
Abstract | Most Americans underestimate the risk of developing a disability and needing long-term services and supports (LTSS). Using microsimulation modeling, we estimate that about half (52%) of Americans turning 65 today will develop a disability serious enough to require LTSS, although most will need assistance for less than two years. About one in seven adults, however, will have a disability for more than five years. On average, an American turning 65 today will incur $138,000 in future LTSS costs, which could be financed by setting aside $70,000 today. Families will pay about half of the costs themselves out-of-pocket, with the rest covered by public programs and private insurance. While most people with LTSS needs will spend relatively little on their care, about one in six (17%) will spend at least $100,000 out-of-pocket for future LTSS. |
URL | https://aspe.hhs.gov/basic-report/long-term-services-and-supports-older-americans-risks-and-financing-research-brief |
Citation Key | 10484 |