AARP Issues Reports to Help Americans Prepare for the Cost of Long-term Care

Source: AARP Press Center | December 13, 2006

Most Americans are unaware of the costs associated with long-term care and overestimate the amount that government programs such as Medicare will pay, according to an AARP report released today at a Capitol Hill news briefing.

"With an estimated nine million people over the age of 65 requiring long-term care services this year, there is a need for better public awareness, planning and coordination of government and private sector initiatives," said AARP National Board Member Jennie Chin Hansen, RN, MSN, FAAN.

"By 2020, the number of people needing long-term care is estimated to reach up to 12 million. We are working at the federal and state levels to pass legislation that will improve choices for long-term care services, assist family caregivers through a caregiver tax credit, and provide more and better options for financing long-term care," said Hansen.

AARP's report entitled The Costs of Long-Term Care: Public Perceptions Versus Reality in 2006, surveyed 1,456 Americans age 45 and older to assess their knowledge of the costs and funding sources for nursing homes, assisted living residences and in-home care. AARP has also released an informative resource book, Across the States 2006: Profiles of Long-Term Care and Independent Living, which highlights the dramatic differences among the states in long-term care services and how these services are financed to help policymakers make informed decisions on long-term care.

The 2006 report released today confirms that little has changed since this study was first conducted in 2001. The "Costs of Long-Term Care: Public Perception Versus Reality in 2006" found that while many people say they are "familiar" with long-term care, most actually have little idea about the costs:

• More than half (60%) say they are at least " somewhat familiar " with long-term care services currently available;
• However, less than one in ten (8%) could reasonably estimate the cost of nursing home care;
• Less than a quarter (23%) could reasonably estimate the cost of assisted living, and 23 percent say they don't know what an in-home visit by a skilled nurse would cost;
• Only one in 10 (9%) could reasonably estimate the cost of an in-home visit by an aide.

Americans 45-plus often think government programs provide coverage when they probably won't:

• More than half (52%) incorrectly believe Medicare covers assisted living;
• Six in 10 (59%) believe Medicare covers nursing home stays beyond three-months for age-related or other chronic conditions, which is not true.

AARP is using the findings from this survey and "Across the States" to educate its members, the public and policymakers. "We are encouraging people to talk with their families, in advance of a crisis, about the kinds of care they would like to receive. If people know what they want, and have an opportunity to realistically plan for their future, they have a much greater chance of living the lifestyle they want in their later years," said Hansen. For more information, and to test your knowledge on how much you know about long-term care, visit www.aarp.org/longtermcare.

The survey was released at a Capitol Hill briefing on long-term care in the U.S. and Europe, which included a presentation from the AARP Global Aging Program.

To view the reports mentioned in this release:
The Costs of Long-Term Care: Public Perceptions vs. Reality in 2006 http://www.aarp.org/research/longtermcare/costs/ltc_costs_2006.html

Across the States 2006: Profiles of Long-Term Care and Independent Living http://www.aarp.org/research/longtermcare/trends/d18763_2006_ats.html

Test your knowledge of long-term care, or for more information about long-term care, visit www.aarp.org/longtermcare.

For more information about AARP Global Aging Program visit www.aarp.org/international.

AARP is a nonprofit, nonpartisan membership organization that helps people 50+ have independence, choice and control in ways that are beneficial and affordable to them and society as a whole. We produce AARP The Magazine, published bimonthly; AARP Bulletin, our monthly newspaper; AARP Segunda Juventud, our bimonthly magazine in Spanish and English; NRTA Live & Learn, our quarterly newsletter for 50+ educators; and our website, AARP.org. AARP Foundation is an affiliated charity that provides security, protection, and empowerment to older persons in need with support from thousands of volunteers, donors, and sponsors. We have staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.