At some point, almost everyone will need assistance with activities of daily living. Recent studies indicate that almost one out of two people turning age 65 will require nursing home confinement of some duration during their remaining years.

Improvements in medical technology have dramatically increased the life expectancy of our population, prolonging the lives of many and increasing the number who may require long-term care.
 
More people are now living well into their 80’s, and even into their 90’s. Senile Dementia and Alzheimer’s disease have become leading causes of the need for long-term care. Other causes include complications resulting from chronic and crippling arthritis, osteoporosis, diabetes, and strokes.

Medicare now pays less of your health care costs due to increases in the deductibles and "Part A" co-insurance payments. Additionally, the Diagnostic Related Groups prospective payment system (the program that sets per-ailment ceilings on Medicare's payment to a hospital) is still in effect. Because of these mandated time limits, hospitals are transferring patients faster and sicker to lower-cost nursing home or extended-care facilities of the remainder of their recovery period. The vast majority of these stays are considered "custodial" and are not paid for by Medicare. This can result in substantial out-of-pocket expense.

As a result, the need for long-term care is impacting more and more American families and threatening the financial stability of those without the means to cover the high cost of LTC expense. These families are trying to answer some difficult questions. They are trying to figure out how they are going to take care of themselves, their parents and grandparents, and still provide for the education of their children and for their own retirement.