by Suzanne Potter
A nonprofit organization advocating for better access to health care is urging California lawmakers to address the growing challenge of paying for long-term care as the state’s population ages.
The issue is becoming increasingly urgent. A University of California, Berkeley analysis projects that by 2030, California will be home to approximately 8.7 million residents age 65 and older, representing about one-fifth of the state’s population. Nationally, nearly 73 million baby boomers will have reached retirement age, placing unprecedented pressure on health care systems and long-term care providers.
The financial burden of long-term care continues to rise. According to the National Association of Insurance Commissioners, the average annual cost of in-home care exceeds $60,000, assisted living averages about $54,000, and a private room in a nursing home costs roughly $108,000 a year. While Medi-Cal covers many low-income Californians, middle-income families often earn too much to qualify for assistance but too little to comfortably pay for private care or insurance.
Bonnie Burns, training and policy specialist with California Health Advocates, said newer hybrid insurance products that combine long-term care benefits with life insurance or annuities generally remain affordable only for wealthier consumers.
“Those people who can’t afford those and who are not poor are really stuck because there isn’t anything out there to finance that kind of care for those middle-income older people,” Burns said.
California has spent several years studying possible solutions. The state’s Long-Term Care Insurance Task Force examined financing models including voluntary insurance, payroll-funded programs and public-private partnerships to help residents prepare for future care needs. The task force concluded that several options are financially feasible but require legislative action.
Advocates say investing in long-term care is becoming more important as Californians live longer and more people choose to age at home. The state’s Master Plan for Aging also promotes expanding home- and community-based services so older adults can remain independent while reducing reliance on costly institutional care.
Burns said one or more of the task force’s recommendations could help middle-income Californians prepare for future long-term care expenses if lawmakers make the issue a priority. She also warned that recent federal reductions affecting Medicare and Medicaid funding could place additional pressure on California’s home-care and nursing-home systems.
– References: California Department of Insurance Long-Term Care Insurance Task Force; California Health Advocates; California Master Plan for Aging; National Association of Insurance Commissioners; University of California, Berkeley demographic analysis.
