Are We Facing a Long Term Care Crisis?
Long Term Care
As demand for long term care increases, so do costs. While states scramble to find solutions, LTC insurance can ease the financial burden in the event you need care.
The number of U.S. adults age 65+ is growing so significantly that in the coming 10 years, that age group will exceed those under 18.1 With this rapidly aging population the demand for long-term care (LTC) solutions is increasing—and driving up costs.
Long Term Care Insurance Provides Options
There are many ways to pay for care when you need it and where you’d like to receive it.
What is causing LTC costs to rise?
As demand for LTC services increases, so does the demand for caregivers and professional staff. With growing burnout and staffing shortages3, the industry has responded by increasing pay to increase staff retention. The national average hourly pay for home-care aids increased nearly 5% in 2025.4 This contributes to the rising costs of care for those who need it.
As our population ages—and life expectancy increases—people are more likely to develop complex chronic conditions that require a high level of care. For example, nearly 50% of nursing home residents have Alzheimer’s disease or dementia.5 This increasing demand is placing even more pressure on LTC staff.
What are some solutions to the increased costs of care?
State funded programs could ease the financial burden of LTC but require taxpayers to fund the programs. In Washington, the WA Cares program introduced a 0.58% payroll tax to fund LTC services (including home-care, home medications, transportation and meal delivery services) to qualifying individuals. New York has proposed a bill to establish a similar program funded through payroll tax. However, both state plans provide relatively limited benefits.
Long-Term Care insurance can play a critical role in protecting families from the rising costs of care. LTC insurance benefits typically kick in once a person (a) can no longer perform at least two activities of daily living or (b) is diagnosed with serious cognitive impairment. Not only does LTC insurance provide options as to how and where care is received, but it also can avoid the need to deplete hard-earned savings to pay for care (which is an eligibility requirement for Medicaid).
As costs continue to rise, don’t wait to figure out what options are available. Our Advisors can you find a plan that fits your needs and budget.
1Miller KEM, Green CM, Fassinger A, Wolff JL. Long-Term Care Services and Supports Needed for Successful Aging-in-Place: A Critical Review. Annu Rev Public Health. 2025 Apr;46(1):487-505.
2Long Term Care Costs. The Federal Long Term Care Insurance Program. www.ltcfeds.gov/long-term-care/costs, Retrieved July 9, 2026.
3The business of caring for older Americans is in a deepening crisis. The Washington Post. www.washingtonpost.com/business/2025/12/04/elder-care-home-health-shortage, December 7, 2025.
4Home Care Aides Receive 4.93% Pay Increase in 2025. Hospital and Healthcare Compensation Service. hhcsinc.com/home-care-aides-receive-4-93-pay-increase-in-2025, November 1, 2025.
5Nursing Home Dementia Care Statistics. Rosewood Rehabilitation and Nursing. www.rosewood-nursing.com/post/nursing-home-dementia-care-statistics, March 4, 2025.
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