Who is at Risk?

 Understandably, most people associate the need for long-term care with the elderly, and statistically, the risk of needing long-term care increases with age. However, this need is not confined solely to the aged. According to an article written for Georgetown University Long-Term Care Financing Project, nearly 40 percent of those who need long-term care are age 40 or younger. At younger ages, congenital defects and accidents are the primary causes leading to the need for long-term care. At middle ages (45 to 55), congenital diseases contribute to the risk. After age 70, individuals are subject to the same congenital diseases, as well as to multiple health conditions and frailty.³

Other facts and statistics regarding long-term care point to its growing prevalence:

• More than 6 million elderly Americans need assistance from family or friends if they are to live at home. 4
• At least two-thirds of all homecare assistance is provided free by family members and friends. 5
• By the year 2020, one of six Americans will be 65 or older. 6
• Of people turning 65, 69 percent will need some long-term care before they die. 7
• More than half of the U.S. population will require some type of long-term care during their lives (nursing home care, home health care, assisted living, ore rehabilitative facility care).8

• Of men turning 65, 58 percent will need some long-term care. 9

• Women are more at risk than men, with 79 percent of women turning 6 and needing some long-term care. 10
• Among those turning 65, 52 percent will need long-term care for at least one year before they die, and 20 percent will need more than five years of care. 11
• The average nursing home stay is approximately two and a half years. 12
• After 2021, the population in nursing homes is expected to increase substantially. This is the year the oldest baby boomers will turn 75. 13 As the population ages, research has predicted the nursing home population to grow to three to four million residents. 14
• Average cost of one year in nursing home: $55,000 in Utah.

The Toll of Elder Care in the Workplace

As employees’ elder-care obligations swell, the cost to employers also increases. A recent study from the MetLife Mature Market Institute documented that the cost to U.S. business of working caregivers ranges from $17 billion to $33 billion per year in lost productivity, absenteeism, workday interruptions, and employee turnover. While many employers are beginning to accept that these costs can be reduced by providing elder-care programs designed to curb productivity losses and employee stress, others are concerned about the costs of offering elder-care assistance and maintaining equitable benefits for those employees who do not have elder-care responsibilities.

Work-Related Issues Associated with Elder Care

In addition to lost productivity, absenteeism, workday interruptions, and employee turnover, other work-related issues associated with caring for elderly parents and other relatives include:

• tardiness
• stress
• excessive phone calls
• unavailability for overtime
• reduced hours
• health problems
• diminished quality of work
• increased risk of work-related accidents and injury

Those with elder-care problems are typically at the height of their careers at 50 to 60 years of age. Their elderly parents need assistance, but often, the resources are not there: they have no LTC insurance policy or surplus income to help with care. They can’t afford to scale back on their hours or jeopardize their careers.

Consumer Attitudes and Understanding

Another social factor associated with the growing long-term care need is current consumer awareness and attitude. Generally, the public at large does not have a good understanding of the long-term care need, including why and how to plan for long-term care. Many simply deny that they will need long-term care; others believe, incorrectly, that Social Security, Medicare, or their existing health insurance will cover the costs. They do not see long-term care as something one needs to plan for in advance, such as they would retirement.

This attitudinal “disconnect” also explains one of the reasons why people may not consider the purchase of long-term care insurance. According to a report issued by the U.S. Department of Health and Human Services, coverage purchased to cover acute care far surpasses the coverage purchased to cover long-term care.¹⁵ Whereas almost all older individuals are protected from high acute care costs through Medicare and private Medigap insurance, a very small percentage have purchased long-term care insurance. This report cited the following, among others, as key factors limiting demand for long-term care insurance:

• lack of information
• misperception of public and private programs
• delayed preparation for/denial of long-term care needs
• long lag time between purchase and benefit payment
• affordability
• perception of need

Consumer attitudes and perceptions notwithstanding, long-term care is a growing reality. It is also a very expensive reality.

Reduce Stress, Take Charge, Plan Ahead

For every reason why people do not plan in advance for long-term care, there is a reason why they should:

• Advanced planning for future care needs will allow greater independence and choice as to where and how the care is delivered.
• Advanced planning can mean greater financial security, not only for those who may need care but also for their family and loved ones.
• Advanced planning can ease the financial and emotional toll on one's family and release them from the burden of providing the care, if and when it is needed.
• Advanced planning will avoid the uncertainty, confusion, and mistakes that could arise in the event of a health care need.
• Advanced planning will promote a continued quality of life, as the person defines it, when care is needed.

Are you prepared to care for a loved one?

15 Vital Questions:

1. Have you had experience providing LTC to one of your loved ones?
2. What are your plans if you or your spouse had a major health issue requiring LTC now or in the future?
3. Do you have a firm idea of what it would potentially cost?
4. What resources would you use first to pay for it? Then what?
5. Do you know how long your assets would last?
6. Is it a possibility that you would use up most or all of your assets leaving your spouse with little or nothing for their remaining life?
7. Where would your long term care help come from?
8. Do you have a family history of Alzheimer, dementia, diabetes, osteoporosis or cancer?
9. Would you rather receive care in your home or somewhere else?
10. Are you comfortable having a family member or friend caring for you if you need help with bathing, continence, etc.?
11. Are you comfortable with the added emotional and physical burdens on loved ones?
12. Do you want your assets to be protected from LTC expenses for inheritance?
13. Do you want a say in the quality of care you receive when the time comes?
14. Have you discussed this issue with your family and do they know your desires and plans?
15. Are your living will, healthcare advanced directives, and other estate planning docs up to date?

To schedule a long-term care review,

contact us at (801) 221-2939

1 U.S. Department of Health hand Human Services, National Clearinghouse for Long-Term Care Information website, www.longtermcare.gov
2 "Estimates of the Risk of Long-Term Care: Assisted Living Facilities and Nursing Home Facilities," U.S. Department of Health and Human Services, July 8, 2003.
3 "Faces of Long-term Care: A Look in the Mirror," Robert B. Friedland, Long-Term Care Financing Project, Georgetown University, July 2007.
4 Americans for Long-Term Security, Americans for Long-Term Security (ALTCS) Website, http://www.itcweb.org/ (accessed September 4, 2007) (hereafter cited as ALTCS). 
5 Ibid.

6 Ibid.
7 Peter Kemper et al, Long-Term Care over the Uncertain Future: What Can Current Retirees Expect?Inquiry, Volume 42, Number 4, Winter 2005/2006, pp. 335-350 (hereafter cited as LTC).
8 ALTCS
9 LTC
10 Ibid.
11 Ibid.
12 ALTCS
13 LTC
14 ALTCS

¹⁵ “The Federal Role in Consumer Protection and Regulation of Long-Term Care Insurance,” U.S. Department of Health and Human Services, June 1991.

¹⁶ Ibid.