Seventy percent of Americans over the age of 65 likely will need long-term care, yet only 10% of them are carrying long-term care coverage, according to the results of a recent survey by the Arctos Foundation and HCG Secure.
The situation could put a dent in the senior living and care industry, as people increasingly look to family members to either provide unpaid care or help pay for needed services, survey results suggest.
HCG Secure and Actos Foundation partnered to conduct a survey of 402 people aged 40 to 64 about their expectations of long-term care needs, costs and preferences. The survey gauged general interest in insurance products, including advocacy and navigation resources, meant to help people before or during their time of need.
About a fourth of respondents indicated that they have had first-hand experience with long-term care through a parent, but the survey found that most participants were unprepared to take on the costs of long-term care. On average, poll-takers estimated costs to be approximately $20,000 less than typical costs.
“The cost for in-home and facility care have increased at a rate double that of inflation since 2004,” Tom Beauregard, CEO of HCG Secure, stated Wednesday in a press release.
The Long-Term Care Affordability Act, introduced by Sen. Pat Toomey (R-PA), would allow individuals to pay up to $2,500 each year for long-term care insurance through their 401(k), 403(b) and individual retirement accounts without incurring a tax penalty. A companion bill was introduced in the house by Rep. Ann Wagner (R-MO), chair of the House Suburban Caucus.
According to senators, one of the obstacles facing long-term care insurance providers is cost — typically, policies cost $100 to $250 per month. Policy specialists have been asking that workers be able to invest their retirement plan assets in long-term care insurance coverage to cover those claims.