Long-Term Care Financing

“People today live longer than their parents did, but they do so with more chronic illness and challenges influencing their ability to live independently.

We need to create and apply realistic solutions that protect older adults — as well as future generations — and enable them to thrive.”

– Bruce Chernof, MD
President and CEO
The SCAN Foundation


America's Long-Term Care Crisis

Half of Americans turning 65 today will one day need a high level of help with basic daily activities, like walking, eating, and bathing.

Many families struggle to best care for an older loved one with these challenges. It can be physically, emotionally, and financially draining.

The financial implications are profound.

Families cover more than half of long-term care costs through out-of-pocket spending.

It is a catastrophic financial risk that Americans find difficult to afford. Hear what Rita and Bernie have to say.

We're taking action!

Our long-term care (LTC) financing initiative supports policymakers and stakeholders who work to create affordable financing solutions for individuals, families, and state and federal governments.

What does this mean for older adults and their families? Our primary goal for older adults and their families is better care and greater financial security.

Join the discussion at #LTCFinancing.

Photo by Kristin Chalmers for Community Catalyst

What's the solution?

Providing quality care for individuals with complex care needs is one of the most pressing challenges facing the United States health care system. The Bipartisan Policy Center (BPC) has been developing policy solutions focused on how to finance and deliver quality care to people with complex care needs since 2013.

This report outlines a roadmap of policy solutions that can begin to tackle the barriers to financing and delivering high-quality, person- and family-centered, coordinated health and social services and supports.



Workable Policy Solutions

We partnered with AARP and LeadingAge to fund a data analytics and economic modeling completed by the Urban Institute and Milliman, Inc. to complete high-level insurance concepts for long-term care financing.


Urban Institute

Microsimulation Analysis of Financing Options for LTSS​​

Older adults face a significant risk of developing chronic health problems and becoming unable to perform basic tasks on their own. In 2011, 7.7 million adults ages 65 and older received help…

Read More

Milliman, Inc.

Premium Estimates for Policy Options to Finance LTSS​

This report focuses on premiums expressed in 2015 dollars for individuals purchasing LTC insurance coverage and  draws comparisons to premiums for policies commonly sold in the private market…

Read More

Health Affairs

Financing LTSS: Options Reflect Trade-Offs for Older Americans and Federal Spending​

Under current policy, people needing long-term services and supports (LTSS) will cover roughly half of their paid care out of pocket. To show how policy changes could expand insurance’s role in financing…

Read More


Long-Term Care Financing

Half of adults in the United States age 65 and older will need high levels of help with daily activities.

Download Here

Long-Term Care Financing

One in seven of all older Americans will need a high level of help with everyday activities for five or more years.

Download Here

Long-Term Care Financing

Women, who average two-and-a-half years of high-level needs, face greater costs.

Download Here

Long-Term Care Financing

Families pay greater than 50 percent of the costs for the high-level needs that many older Americans face.

Download Here

Get informed.

This video by Anne Tumlinson Innovations describes the need for new long-term care (LTC) financing solutions and encourages all Americans to join the conversation.

Also, The Case for Financing Older America’s Long-Term Care Need resource is available for download and wide use.

The need for financing solutions

The Buzz

News on transforming care for older adults

Recent Publications
more publications
Enacted on July 12, 2021, California’s 2021-22 budget addresses longstanding system challenges related to health care, long-term services and supports, workforce, and housing for older adults, people with disabilities, and their caregivers. It reflects the recommendations of the governor’s Master Plan for Aging issued earlier in 2021, and includes $4.6 billion to enhance access to home- and community-based services (HCBS), as outlined in California’s proposed HCBS Spending Plan.
On May 14, 2021, California Governor Gavin Newsom released the May Revision of the 2021-22 proposed budget. The revision includes a $75.7 billion surplus with investments in economic recovery related to COVID-19 and resources to implement the Master Plan for Aging.
In this Perspectives, Dr. Chernof highlights the similarities across each set of recommendations and advocates for the multi-pronged approach put forth by all groups—one that clarifies personal responsibility, outlines private market solutions, addresses long-term needs, and refocuses Medicaid’s role.
Last year, modeling efforts distilled various options to improve America’s financing system for long-term care. This month, three organizations – the Bipartisan Policy Center, LeadingAge, and the Long-Term Care Financing Collaborative – released related policy recommendations. This analysis identifies common themes and notes where the recommendations differ in perspective.