What is Long-Term Care?

Long-Term Care refers to the assistance someone requires when they can no longer independently perform two or more Activities of Daily Living (ADLs), such as bathing, dressing, eating, or transferring; or when suffering from severe cognitive impairment such as Alzheimer's disease or dementia.

Approximately 50% of Americans are expected to require some form of Long-Term Care during their lifetime.

When most people hear "Long-Term Care," they immediately think of care in a nursing home. This is a common misconception. Care can certainly be provided in a nursing home, but it can also be provided in an assisted living facility—or more commonly in the home or residential setting.

Consider this example: a young adult suffers a shattered hip during a skiing accident and cannot bathe, dress, or transfer (get around) without assistance for over a year.

Many people assume these expenses will be covered by health insurance, disability insurance, or Medicare. In most cases, they are not.

While medical insurance may cover hospitalization and physical therapy, it generally does not cover assistance with bathing, dressing, mobility, or supervision.

This leaves the cost of care to be self-insured or funded through personal savings, income, retirement accounts, or other assets. With costs averaging over $144,000 for one year of care in the Northeast, and care often needed for over 3 years, the financial impact can be crippling.

Understanding Long-Term Care is becoming increasingly important for Employers looking to expand their financial wellness offerings and differentiate their employee benefit programs.