Out-of-pocket paid expenditures for nursing care facilities will grow significantly in the years ahead according to the American Association for Long-Term Care Insurance.
"Total national expenditures are predicted to grow to $266.2 billion by 2028," states Jesse Slome, director of the American Association for Long-Term Care Insurance. "That is a 58 percent increase from the latest actual reported expenditure of $168.5 billion for 2018."
The report predicts the national growth of expenditures for nursing care facilities as well as Continuing Care Retirement Communities. "Total expenditures are expected to reach $210.7 billion in 2023," Slome shared. "The concerning aspect is that out-of-pocket expenses are expected to grow from $44.8 billion (2018) to $52.7 billion in 2023. By 2028, out-of-pocket expenses that will be imposed on families is projected to reach $59.4 billion."
Increased costs will account for some of the increase Slome acknowledges. "So will the increase in the number of aging Americans who will need care," he adds. "The reality is that people age and need care. When they do, someone will be facing bills."
The Association director shared that the percentage of costs expected to be paid by Medicaid will grow. "Nearly $50 billion was paid by Medicaid in 2018," Slome shared. "The projection for 2028 is that the cost will rise to $73 billion, a 59.1 percent increase. Is this financially feasible, only time will tell."
Slome suggested that insurance agents drip continuing information to their clients starting around age 50. "Educating consumers is paramount to the process of creating awareness of the risk and need," Slome advised. "Government reports of projected out-of-pocket risks that will face individuals comes with added trust factors and can be a most valuable tool to use."
The American Association for Long-Term Care Insurance (AALTCI) advocates for the importance of long-term care planning and supports insurance professionals who market both traditional and hybrid LTC solutions. To access the latest long-term care statistics, visit the Association's Data Center at www/aaltci.org/LTCFacts-2022/.
To obtain long-term care insurance costs from a long-term care insurance specialist call the organization at 818-597-3227 or visit their website www.aaltci.org.
Jesse Slome is director of the American Association for Long-Term Care Insurance. He also directs the American Association for Critical Illness Insurance and the American Association for Medicare Supplement Insurance. To find local Medicare insurance agents utilize the organization's free online directory.