March 1, 2024

Long Term Care Needs are on the Rise

The aging population in America is growing at an unprecedented rate. As millions of baby boomers reach retirement age, the demand for long term care services is increasing exponentially. This rising need poses financial and resource challenges but also opportunities to improve the system.

Changing Demographics

The United States Census Bureau projects that the population aged 65 and over will double from 46 million today to over 98 million by 2060. This “Silver Tsunami” as it’s been called will dramatically change the makeup of our society. As people are living longer lives, the chances of needing long term care greatly increases with age. According to the Department of Health and Human Services, about 70% of people over age 65 will require some type of long term care services at some point. The growing number of elderly will strain the current long term care infrastructure and workforce unless changes are made.

Varied Levels of Care Needed

Not all seniors will need the same level of care. Long term care encompasses a range of supportive services from basic home care like meal preparation and light housekeeping to around-the-clock nursing home care. Some individuals may only require help on an occasional or part-time basis while living independently. Others with chronic illnesses or disabilities will need more extensive assistance over a period of years. Caregivers and policymakers must address the full spectrum of needs for every age and situation.

High Cost is a Major Concern

The rising demand for long term care will put significant financial pressure on government programs, families, and individuals. According to Genworth’s 2020 Cost of Care Survey, the national median annual cost of a home health aide is $54,912, assisted living facility is $51,600, and nursing home is $93,075. With 10,000 Americans turning 65 every day, these costs will climb sharply without reforms. Currently, two-thirds of nursing home residents rely on Medicaid to pay their bills after exhausting their personal savings and assets. Innovative solutions are urgently needed to make long term care more affordable and sustainable for all socioeconomic levels.

The Family Caregiver Burden

While paid caregivers are crucial, family members provide the vast majority of long term care at home. An estimated 34 million Americans serve as unpaid family caregivers for parents, spouses, or other loved ones. However, caregiving takes a heavy financial, physical, and emotional toll on these individuals. Studies show family caregivers suffer higher rates of depression, illness, and lost income potential due to leaving the workforce or reducing hours. Policies are required to support the well-being of caregivers through tax credits, job protections, respite services, and other resources that recognize their important role.

Promising Approaches on the Horizon

With the impending long term care crisis, experts are exploring new models focused on consumer choice, coordinated care, and cost-effectiveness. Some key reform ideas include expanding community-based services, enhancing Medicare Advantage plans, implementing cash and counseling programs, utilizing technology, and strengthening the direct care workforce. While structural obstacles remain, pilot programs around the country demonstrate the viability of innovative solutions. If adequately reformed and resourced, the long term care system could empower citizens to age with greater dignity, independence and affordability in the setting of their choice.

Workforce Development is Paramount

As demand increases, long term care will face unprecedented workforce shortages without action. Direct care jobs like home health aides and nursing assistants are projected to be among the fastest growing occupations yet suffer from high turnover rates and low wages. Meaningful reform involves developing career pipelines, guaranteeing living wages and benefits, improving training standards, and changing perceptions of these essential roles. Allocating more Medicaid funding to home and community services could stabilize provider reimbursement rates and make jobs in the field more appealing and sustainable long term.


As life expectancies lengthen, long term care will impact nearly every American family. With advance planning and systemic changes, communities can rise to meet this challenge of supporting our aging population with compassion and fiscal prudence. Coordinated stakeholder efforts are required to enact consumer-focused, cost-efficient solutions within government programs, private enterprise, non-profits, academia and beyond. By coming together innovatively and urgently addressing workforce, financing, care delivery and caregiver issues – communities nationwide can build a high-quality, sustainable long term care system for the future.


  1. Source: Coherent Market Insights, Public sources, Desk research

2. We have leveraged AI tools to mine information and compile it