Disabilities
Becoming Disabled After Age 65: The Expected Lifetime Costs of Independent Living
Research Report
Marc A. Cohen, Ph.D., LifePlans, Inc.
Maurice Weinrobe, Ph.D., Clark University
Jessica Miller, M.S., LifePlans, Inc.
Anne Ingoldsby, MPH, RN, LifePlans, Inc.
June 2005
This AARP Public Policy Institute Issue Paper estimates, for persons 65 and over, the remaining lifetime probability of developing a disability and needing long-term care services, and the costs of providing these services in the community. The four authors are, respectively, President of LifePlans, Inc.; Professor of Economics at Clark University; Senior Research Associate, and Senior Clinician, both at LifePlans Inc.
Their research finds that the average costs of the services associated with maintaining at home throughout their entire course of disability those older persons who develop disabilities while in the community are estimated at about $174,000 (in year 2002 dollars). Median costs are estimated at $135,000. The average monthly cost of care is $2,924. The average expected lifetime costs of care for maintaining a nursing home resident in the community rather than in a nursing home are estimated to be only slightly higher at $179,000. Nursing home residents are typically more disabled and have much higher average monthly costs (roughly $4,000), but they also have shorter life expectancies than do individuals with disabilities living at home. (50 pages)
Pub ID: 2005-08