What Is Long Term Care (LTC)?
LTC is custodial care received in an assisted-living facility, nursing home or your own home should you end up with a physical impairment1 and need assistance with two out of six Activities of Daily Living (ADL's) and/or suffer from a severe cognitive impairment.2 Some reasons people need this type of care are injury (such as a car accident), illness (such as Cancer), aging or a cognitive impairment (such as Alzheimer’s disease, Dementia or effects of a stroke).
1A physical impairment is created by chronic medical conditions, defined as an illness that can be managed with therapy or medication but cannot be cured by either.
2A cognitive impairment is defined as a measurable decline in one’s intellect to the extent that the individual is also compromised.
Types of LTC Facilities
Home Care
$75,504 per year
This is supportive care provided in the comfort of your own home by licensed healthcare professionals or professional caregivers. The average stay is 3 years. Most people—nearly 79%—who need LTC live at home or in assisted living community settings, not in institutions8.
8Agency for Healthcare Research and Quality. LTC users range in age and most do not live in nursing homes: Research alert. Rockville: Author, 2000
Assisted Living
$64,200 per year
Assisted living offers residents independence and a home-like atmosphere with the availability of personal care and support services, if needed. The average stay is 2.5 - 3 years.
Nursing Home
$116,800 per year
A nursing home provides continual residential care and is often referred to as a skilled nursing facility, care home or rest home. In these facilities, nurses' aides and skilled nurses are usually available 24 hours a day. The average stay is 2.4 years. These settings look and operate much differently than the nursing homes of previous generations. New models of care make the senior experience quite different, and many facilities are modeling their residences on resort-style living, including offerings such as social activities, hair salons and even man-caves.
What is my Risk of Needing LTC?
Why would you handle the risk of LTC any differently than you handled the other risks?
2.3%
Risk of getting into
an auto accident
1Bureau of the Census Data, 2000 and 2000 data collected from the federal Highway Administration, November 2001
12.5%
Risk of
becoming disabled
2ARS-AFM Administrative and Financial Services, Retirement and Benefits, LTC Care Basics Q&A article, Section: It Can Happen at Any Age, January 7, 2003
40%
Risk of needing LTC
(ages 18-65)
3Long Term Care. AHRQ Focus on Research. AHRQ Pub No. 02-M028, March 2002. Agency for Healthcare Research & Quality
67%
Risk of needing LTC
(ages 65+)
4US Department of Health and Human Services. “National Clearinghouse for Long Term Care Information.” 2011.