With Federal matching funds included, long-term care costs to exceed $3.7 trillion
Click here for a link to the full report: http://www.ahip.org/content/default.aspx?docid=24597
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 n
|SOURCE America's Health Insurance Plans|
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