Navigation Links
State Medicaid Programs to Spend $1.6 Trillion on Long-Term Care over the Next Twenty Years

With Federal matching funds included, long-term care costs to exceed $3.7 trillion

Click here for a link to the full report:

WASHINGTON, Sept. 29 /PRNewswire-USNewswire/ -- State Medicaid programs will spend $1.6 trillion on long-term care expenses over the next twenty years, according to a new study released today by America's Health Insurance Plans (AHIP). When Federal matching funds are included, total government expenditures on long-term care will exceed $3.7 trillion.

Medicaid spending for long-term care will grow at a faster rate than overall health care spending, faster than Medicare, and faster than the national Gross Domestic Product.

"This report shines a spotlight on the need to better prepare for long-term care expenses and to explore ways to provide consumers with greater access to home and community based care options," said Karen Ignagni, President and CEO of AHIP. "Many Americans underestimate their risk of needing long-term care, underestimate the cost of care, and many erroneously believe they have long-term care coverage."

Paul A. London, an economist and former Commerce Department deputy undersecretary in the Clinton Administration, and Daniel I. Shostak, Ph.D. of Maryland-based Strategic Affairs Forecasting prepared the report on behalf of AHIP. The report provides national as well as state specific projections for long-term care costs. Projections were calculated using 2008 dollars.

If current policies and trends continue, between 2008 and 2027 annual Medicaid long-term care expenditures are projected to grow by 124% from $51.5 billion to $115.6 billion. In 2008, fifteen states are expected to spend $1 billion on Medicaid long-term care services. By 2027, 25 states will be spending $1 billion or more.

States with the highest projected expenditures over the next twenty years includes New York ($271 billion), California ($230 billion), and Pennsylvania ($104 billion). States with the fastest growing Medicaid long-term care expenses are Alaska (7 percent), California (6.4 percent), and Arizona (5.9 percent).

"States cannot continue to shoulder the burden of long-term care costs without some major changes," said Daniel I. Shostak, MPH MPP, Strategic Affairs Forecasting.

The report projects Medicaid long-term care expenditures and does not include costs that Americans pay out of pocket for long-term care. Medicaid pays long-term care costs for low-income individuals or for those who have spent down their assets to the point of Medicaid eligibility. Medicare does not cover extended long-term care.

Increasingly expensive medical treatment and the aging of the baby boom population are major contributing factors to the increase in Medicaid long-term care expenses. In addition, many Americans have not purchased long-term care insurance to help cover the cost of care

Most Americans are not focused on planning for long-term care and are not taking appropriate steps to protect their retirement savings should they need long-term care services. Studies show that a 65 year-old today has a 70 percent chance of needing long-term care at some point in his or her lifetime. The average annual stay in a nursing home is $75,000.

AHIP recently launched a national education campaign to better inform consumers about their risks of needing long-term care and the valuable financial protection long-term care insurance provides. The campaign seeks to correct common misconceptions about long-term care, answer consumers' questions, and highlight the important financial protection and peace of mind that long-term care insurance provides. The centerpiece of this campaign is a consumer-friendly website,

America's Health Insurance Plans - Providing Health Benefits to More Than 200 Million Americans

SOURCE America's Health Insurance Plans
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. Conventional prognostic factors fail to explain better prostate cancer survival in most Asian men
2. First biomarker discovered that predicts prostate cancer outcome
3. Frequent Prostate Screens Fail to Improve Aggressive Cancer Diagnoses
4. New male sling procedure helps prostate cancer survivors who suffer from urinary incontinence
5. Us TOO Launches National SEA Blue Campaign for Prostate Cancer Awareness Month
6. HHS Announces $75 Million in Supplemental Funding to States for Pandemic Flu Preparedness
7. 4-Star Gen. Barry Mccaffrey, Former U.S. Drug Czar, to Keynote Recovery Happens! Rally for Treatment: Wed., Sept. 5, 11 Am, State Capitol West Steps, Sacramento
8. Expert on Emerging Infectious Zoonotic Diseases Joining K-State as a Regents Distinguished Professor
9. Red wine compound shown to prevent prostate cancer
10. Coalition for Pulmonary Fibrosis Launches Aggressive Ad Campaign Directed at United States Congress
11. PA Secretary of Public Welfare Responds to Warren State Hospital Closure Rumors
Post Your Comments:
(Date:11/25/2015)... ... ... For the first time, Vitalalert is donating half of its earnings to ... between the two groups began in 2014 with Vitalalert pledging a portion of every ... founded in 1954 and is an international Christian-based health organization whose mission is to ...
(Date:11/25/2015)... (PRWEB) , ... November 25, 2015 , ... According to ... surgical robot is being more and more widely heralded as a breakthrough for performing ... Vinci method has over traditional laparoscopic surgery is that it can greatly reduce the ...
(Date:11/25/2015)... ... November 25, 2015 , ... ... people across the country to celebrate their sobriety and show through pictures what ... “before and after” photos this Thanksgiving with the hashtag #FacesOfGratitude on their Facebook, ...
(Date:11/25/2015)... ... November 25, 2015 , ... Dental professionals who would like to become more ... to attend Dr. Mark Iacobelli’s Advanced Implant Mentoring (AIM) CE course. Courses will be ... As the co-founders of Advanced Implant Mentoring (AIM), Dr. Iacobelli and Dr. D’Orazio are ...
(Date:11/25/2015)... ... November 25, 2015 , ... On November 25, 2015, officials of ... network, announced the release of a new cutting edge recovery program that has been ... working with drug- and alcohol-addicted individuals with the purpose to free addicts from the ...
Breaking Medicine News(10 mins):
(Date:11/25/2015)... N.Y. , Nov. 25, 2015  Linden Care, ... and optimizing treatment outcomes for patients suffering from chronic ... request for a Temporary Restraining Order (TRO) enjoining Express ... the two companies. --> ... pursuing all of its legal options. ...
(Date:11/25/2015)... WILMINGTON, N.C. , Nov. 25, 2015 /PRNewswire/ ... announces the planned investment of at least $15.8 ... in Wilmington, NC . The ... services capacity to meet the growing demands of ... Wilmington site expansion will provide up ...
(Date:11/25/2015)... -- On Tuesday, November 24, 2015, the jury ... Medical Technology, Inc. for product liability and misrepresentation ... device, awarded $11 million in favor of Plaintiff ... three days of deliberations, the jury found that ... and unreasonably dangerous, and that Wright Medical made ...
Breaking Medicine Technology: