Paying for Long-Term Care THE RISK EVERYONE FACES – Especially Women MAY 2016
ANNE TUMLINSON INNOVATIONS
I.
LTC NEED IS AN INSURABLE RISK
II.
FEW PEOPLE FACE THIS RISK PREPARED
III.
INSURING EVERYONE WOULD INCREASE SPENDING BY 30%
ANNE TUMLINSON INNOVATIONS
Half of Older Adults Develop High Need
ANNE TUMLINSON INNOVATIONS
Favreault, Melissa and Judith Dey. Long-Term Services and Supports for Older Americans: Risks and Financing Research Brief. Office Of the Assistant Secretary of Planning and Evaluation, U.S. DHHS, Revised February 2015
A Quarter Live 5+ Years With High Level of Need 52% 36%
15%
23%
26%
2-5
5+
% of High Need
65+
<1
1-2
YEARS OF HIGH LEVEL NEED Source : The Urban Institute 7/13/2015
ANNE TUMLINSON INNOVATIONS
Favreault, Melissa and Judith Dey. Long-Term Services and Supports for Older Americans: Risks and Financing Research Brief. Office Of the Assistant Secretary of Planning and Evaluation, U.S. DHHS, Revised February 2015
Care For High Need Costs $260,000 On Average 52%
Source : The Urban Institute 7/13/2015
ANNE TUMLINSON INNOVATIONS
Favreault, Melissa and Judith Dey. Long-Term Services and Supports for Older Americans: Risks and Financing Research Brief. Office Of the Assistant Secretary of Planning and Evaluation, U.S. DHHS, Revised February 2015
For 30%, $250k is the Minimum 52% Individuals with Expenditures 30%
30%
22% 18%
$1 - $49,999
ANNE TUMLINSON INNOVATIONS
$50,000 - $99,999
$100,000 - $249,999
$250,000+
Adapted From Favreault, Melissa, Gleckman, Howard and Richard W. Johnson How Much Could Financing Reforms for Long-Term Services and Supports Reduce Medicaid Costs? The Urban Institute. February 2016.
Over Half is Financed Through Personal Savings Individuals Turning 65 in the Next 5 Years Will Pay Over ½ of the Average Lifetime Cost Out of Savings
ANNE TUMLINSON INNOVATIONS
Favreault, Melissa and Judith Dey. Long-Term Services and Supports for Older Americans: Risks and Financing Research Brief. Office Of the Assistant Secretary of Planning and Evaluation, U.S. DHHS, Revised February 2015
Insuring Everyone Increases $$s Spent on LTC Services Combined Out of Pocket and Insurance LTC Spending Increases 15 â&#x20AC;&#x201C; 30 Percent When Everyone is Insured $70 0
Dollars in Billions
$ 624
$60 0
$ 4 68
$50 0 $4 0 0 $30 0
$ 256
$ 220
St at us Quo Insurance
$20 0 $10 0 $0 20 30 ANNE TUMLINSON INNOVATIONS
20 4 0
Favreault, Melissa, and Richard W. Johnson Microsimulation Analysis of Financing Options for Long-Term Services and Supports The Urban Institute Research Report November 2015