Long-term care costs rose about 50% in five years, report finds

(InvestigateTV) — The cost of long-term care jumped nearly 50% in five years, while income for older households rose just 22%, according to a new AARP report.

The report found long-term services and supports are becoming even less affordable for middle-class Americans. Alan Weil, senior vice president for public policy at AARP, said the gap is the most important finding.

“Between 2019 and 2024, a five-year period, the cost of most long-term care services went up about 50%, but the incomes for older households only went up by about 22%,” Weil said. “So the gap between what people can afford and what it costs has grown.”

The AARP also looked at what different types of care cost. Weil said the more skilled the service, the higher the price.

“If you need someone to come in and help you prepare food, that’s less expensive than if you need someone to come in and provide nursing-level care,” Weil said. “Although I’ll also say that we’ve learned that a lot of caregivers are being forced to provide nursing care that they can’t afford to pay someone else to do, even though they’ve never been trained in nursing. So that’s where the burden falls back on the family.”

The financial burden often extends beyond the person who needs care. Weil said many families are part of what he called the sandwich generation.

“If you’re paying for care that your parents need, you’re not saving for your kids’ college,” Weil said. “So this is a squeeze coming from both directions.”

Weil said the best way to prepare is to plan ahead and look into assistance programs that might fit a family’s needs.

“Some people will be qualified for Medicaid, a state and federal program,” Weil said. “The rules differ by state, and at AARP we fight really, really hard to make sure that these services are as available for people as possible.”

Weil said families in the sandwich generation should not assume they are stuck paying out of pocket. He recommends asking a state Medicaid office about eligibility and checking AARP.org for help finding assistance programs in your area.