10 Things to Know About Long Term Care & Assisted Living

1. A 2015 survey of affluent adults between the ages of 50 and 68 conducted by Greenwald & Associates on behalf of John Hancock Insurance found that only three in 10 have actually made a plan to address long term care as a potential physical or financial risk. —John Hancock Insurance (JHI)
2. 41 percent of John Hancock 2015 survey respondents said insurance is the preferred way of handling long term care costs; 27 percent indicated they would likely pay for such costs out of pocket. —John Hancock Insurance (JHI)
3. In 2014, the median cost of assisted living (one bedroom, single occupancy) nationally was $42,300 a year. Costs vary by region and state. In Missouri, the median rate is about $30,000; the median rate is around $65,000 in New Jersey and $94,000 in Washington, D.C. —Genworth Financial Inc.
4. The number of people older than 65 in 2030 is projected to be twice as large as in 2000, growing from 35 million to 71.5 million. —American Association for Long-Term Care Insurance
5. Long term care loss rates are increasing by 5 percent annually; long term care frequency is increasing by 3 percent per year; and long term care claim severity is increasing by 2 percent annually. —Aon Risk Solutions’ 2014 Long Term Care General Liability and Professional Liability Actuarial Analysis
6. Long term care loss rates vary widely by state. For the states profiled in Aon’s 2014 long term care analysis, Kentucky was found to have the highest loss rates, at $9,220 per occupied bed and Texas had the lowest, at $320 per occupied bed. —Aon Risk Solutions
7. In the United States in 2012, approximately 58,500 paid, regulated long term care services providers served about 8 million people. Care was provided by 4,800 adult day services centers, 12,200 home health agencies, 3,700 hospices, 15,700 nursing homes, and 22,200 assisted living and similar residential care communities. —U.S. Centers for Disease Control
8. About 70 percent of people who reach age 65 are expected to need some form of long-term care at least once in their lifetime. —National Association of Insurance Commissioners
9. Around 12 million senior citizens in the United States will require long term care by 2020. Women are more likely to need long term care due to longer life expectancies. —U.S. Department of Health and Human Services
10. For 2016, the Internal Revenue Service is increasing the maximum tax deduction for tax-qualified long term care insurance coverage. For example, for a person over 60 but under the age of 70, the maximum deduction increases from $3,800 in 2015 to $3,900 in 2016. For a person over 70, the maximum deduction increases from $4,750 in 2015 to $4,870. —IRS Revenue Procedures 2014-61 (2015 Limits) and 2015-53 (2016 Limits)

Topics USA