Support for a government-run, long-term care insurance program (similar to Medicare) jumped dramatically from 51% in 2013 to 70% in 2018, a recent survey by the NORC Center for Public Affairs Research reveals. The country’s increasing aging baby boomer population— many of whom will eventually enter long-term care — is the main reason behind this surge in political action aiming to improve long-term care. It’s estimated one in five Americans will be a senior citizen in 2030. What does this mean for the landscape of long-term care now and in the next few years?
Current financial options for long-term care
The federal Medicaid program is the main financial provider of long-term care for seniors. It covers the cost of assisted living for low-income seniors, which includes both personal care and homemaker assistance. However, it’s hoped lawmakers will either widen the Medicaid income eligibility requirements or at least begin to offer home-based care to higher-income applicants. Additionally, Medicare covers select long-term care costs, while private Medicare Advantage plans are also starting to offer limited services.
When it comes to private long-term care insurance, however, there isn’t much choice. There’s also a trend in home health care workers quitting their jobs for better paying roles. Ultimately, it’s imperative long-term care receives a generous boost in funding sooner rather than later. By 2030, the resources required to provide the today’s level of long-term care are expected to triple. This is largely down to the rapidly growing senior population.
Positive changes
Let’s take a look at some of the positive changes implemented across the country to help both seniors and caregivers cope with the expensive yet vital costs of home care, nursing homes, and assisted living facilities. To start, Illinois, Michigan, and Minnesota are each currently looking at devising public and private options to help cover caregiving expenses. In California, the California Aging and Disability Alliance is working on creating a ballot initiative for a public long-term care financing program. Hawaii recently launched the Kupuna Caregivers Program that pays family caregivers $70 a day for one full year.
The benefit program recently faced potential budget cuts, but ultimately received a boost in funding, allowing it to help even more seniors in need. And last but not least, Washington State legislature recently passed the first universal public long-term care insurance benefit. Starting 2025, it’s set to be the most comprehensive long-term care program in the nation, providing home modifications, personal care aides, and nursing home or assisted living costs.
The future of long-term care
As things currently stand, the Trump administration appears to have no intention of increasing federal funding towards long-term care costs. Experts expect to be waiting until at least the 2020 election to see any changes made in this regard. However, we can look forward to solutions being increasingly implemented at state levels — which often paves the way for nationwide change. Ultimately, the positive changes made in states like California, Hawaii, and Washington signal the end of America’s inaction over the financing of long-term care and mark a better future for seniors and their family caregivers.