Federal Advocacy

Assisted living offers lower costs, improved quality of life, better health outcomes, and reduced health care costs. More than 90 percent of seniors in assisted living communities reported “good or great satisfaction” with their community. Additionally, 96 percent reported their communities provided sufficient health care and access to care, nearly 75 percent said assisted living improved their quality of life, and 70 percent indicated their health outlook improved as result of the care they receive. If assisted living were not an option, as many as 61% of senior residents may be forced into far-costlier skilled nursing facilities at a cost of $43.4 billion. This additional cost would cripple state and federal Medicaid budgets.

THE CHALLENGE: Our nation is rapidly aging and is unprepared to meet rising care needs.

The United States is on the precipice of a seismic shift that will transform our population from an aging population to an aged population. Today, 17 percent of Americans—or 55.7 million people—are 65 and older, By 2040, 22 percent—or 80.8 million Americans—are projected to be 65 and older, more than twice as many as in 2000. The most rapidly aging segment of the population are seniors aged 85 and older, and it is these individuals who will need the greatest and most direct care.

Very few Americans are adequately prepared for their LTC costs. Many incorrectly believe that Medicare, Medicaid, or their private health insurance will cover these costs. And only 7.5 million Americans have any form of long-term care insurance (LTCI), with many policies too expensive and complex. That leaves far too many people covering the cost of care themselves, eventually depleting their savings and retirement assets to qualify for Medicaid.

As the need for senior care continues its dramatic growth, the current and future workforce is simply not keeping pace. The senior living industry lost more than 100,000 positions in the first 20 months of the pandemic. LTC workforce shortages eclipse all other health care shortages, with an estimated 20.2 million workers needed by 2040. Assisted living and memory care communities face the most acute workforce needs across the entire LTC continuum. Policymakers at all levels of government should pursue policies to address the senior care crisis and find cost-effective solutions to meet the challenges of our rapidly aging population.