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A New Look at U.S. Expenditures for Long-Term Care and Independent Living Services, Settings, and Technologies for the Year 2000

As we age, Americans use an increasingly diverse range of services, residential settings, and technologies to assist in maintaining their functioning and independence. In addition to traditional long-term care, such as nursing home and home health care services, there is growing use of assisted living residences, adult day care, home modifications, assistive technologies, and other activities.

Individuals and federal, state, and local governments are grappling with the costs of providing these services, settings, and technologies to persons who need them. As a result, it is useful to take stock of the level of expenditures as well as who is paying for them.

This AARP Public Policy Institute Issue Paper presents new estimates of U.S. expenditures on long-term care and independent living activities for the year 2000, both in total and for persons age 65 and over, including breakouts by type of activity and source of payment. To reflect the range of developments in providing assistance in functioning and independence, the estimates presented here incorporate services, settings, and technologies that are both within and outside of the health care sector. This is a departure from most existing estimates, which measure only those long-term care services that are a subset of the health care sector. (23 pages)

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