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Shocking statistics about the costs of long-term care

Many of us will require long-term care at some point in our lives. In fact, the Department of Health and Human Services estimates that 56% of Americans over the age of 65 will need some kind of long-term care during their lifetimes.1

Despite this, many people are hesitant about seeking long-term care for themselves or their family members. According to a 2023 West Health and Gallup poll, 70% of respondents said they'd feel uncomfortable being admitted to a nursing home or assisted living facility, while 61% of respondents said they would not be comfortable seeking similar residential care for a family member.2

Nurse documents patient's concerns at a house call.

However, long-term care doesn't necessarily have to involve a residential facility like a nursing home. As our Simple Guide to Understanding Long-Term Care (and Paying for It) explains, long-term care also encompasses live-in care such as in-home health aides who can assist with daily tasks like walking, eating and showering. Long-term care even includes outpatient treatment like physical or speech therapy.

When it comes to long-term care, there are significant financial implications not just for the patients themselves, but for their families too. The issue has only worsened as health care costs continue to rise. A 2024 study by Genworth shares some stark realities about how high the costs of care have become:

  • Assisted living facility costs increased by 1.4% in 2023, bringing the national median cost of care to $64,200 per year.3
  • The cost of employing a home health aide rose 10% in 2023, leading to an annual median cost of $75,500.3
  • The annual median cost of a semi-private room in a skilled nursing facility rose to $104,000, while a private room now costs nearly $117,000.3

These costs are significant, so it should come as no surprise that 56% of people with disabled family members said they cut back spending on food, clothing or other basic household needs to help afford long-term care for their loved ones—and that number jumps to 67% for lower-income respondents.4

For these reasons, it's vitally important for each of us to prepare for the possibility of eventually requiring long-term care services—either for ourselves or for a loved one. While Medicaid provides some relief for patients, their families are usually responsible for a significant portion of the cost.

What can we do to help prepare for these potential expenses? If you are employed, check your benefit offerings to see if your employer offers long-term care coverage. If you're an employer who doesn't currently offer long-term care protection to your employees, you should strongly consider providing them with coverage to help them face this potentially debilitating expense.

Allstate Benefits offers a variety of life insurance coverage options that include provisions to help the insured person pay for any long-term care expenses they may incur during their lifetime. These plans are a tremendous value: not only do enrollees receive the benefits of a traditional life insurance policy, but they also enjoy the peace of mind that comes with knowing that they're covered if they ever require long-term care.

By offering insurance coverage to help pay for these potential expenses, you are giving your employees the freedom to seek the care they require, not just the care they can afford. In an increasingly competitive job market, this type of benefit allows employers to provide valuable financial protection to their employees while increasing retention and employee satisfaction.

Contact an Allstate Benefits sales representative to learn more about how our products can help your employees prepare for their financial future.

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