Nearly 70% of Americans over 65 will need long-term care due to a physical or mental impairment resulting from a chronic illness or disability.  Unlike skilled nursing care, long-term care involves assistance with the basic activities of daily living such as bathing, dressing, and cooking, as well as tasks such as running errands and paying bills.    

Most of this care is provided in the home by friends and family members who are not paid for their services. A 2023 study by AARP estimates 48 million adults are informal caregivers who do not receive compensation. Most are women who also hold down jobs. 

Providing care takes a toll on the caregiver’s mental health and fuels negative emotions that can lead to exhaustion and burnout. In AARP surveys, many caregivers report stress (63-76%), anxiety (48-67%), and sadness or depression (40-61%). Other common complaints include worry, concern about the future, anger, and frustration. According to the same research, four out of ten caregivers report they rarely or never feel relaxed, and the same percentage say they feel alone.  

Chronic stress and burnout have consequences for physical health and well-being by compromising the body’s immune response and exacerbating existing medical conditions. Half of all caregivers surveyed in 2023 told AARP they put aside their own preventive care and neglected their own mental and physical health due to the demands on their time. 

Certain caregiving demands such as dementia and end-of-life care tend to produce more emotional strain. Having insufficient resources also contributes to higher levels of stress, Caregivers report being overwhelmed due to their lack of knowledge or skill. Inadequate social supports, respite, or community services can also overburden them.    

The Root of the Problem 

America’s growing dependence on informal, unpaid caregivers is generally a matter of cost, not preference. Facility-based care and services from certified homecare providers are expensive and can easily drain the savings and retirement funds of middle-class Americans. Nationally, the average annual cost of a home health aide was over $66,000, while the average for a private room in a nursing home was almost $115,000, according to 2022 research sponsored by Mutual of Omaha.   

Neither Medicare nor private health care insurance cover the cost of long-term care services and support. Medicaid pays for it, but only when an applicant’s financial assets are low enough to qualify for the program. Long-term care insurance can be the best solution, but only 3 to 4% of individuals own this coverage, according to the American Association for Long-Term Care.  

The lack of preparedness for future long-term care needs and expenses is a major cause for concern—so much so that states are stepping up to offer solutions. Washington State for example, instituted a public long-term care insurance program funded by a mandatory payroll tax that will provide residents with up to $36,500 in benefits beginning in 2026. California is expected to approve a public long-term care insurance program soon. Other states considering legislation are Alaska, California, Colorado, Hawaii, Illinois, Michigan, Minnesota, Missouri, North Carolina, New York, Oregon, Pennsylvania and Utah. 

Enhancing LTC Preparedness with Employee Benefits    

Employers also are concerned about this lack of preparedness. It’s hard to turn a blind eye to the problem as more and more employees deal with the stress involved in working and providing care for family members. Given their firsthand experience, employees are increasingly concerned about making sure their loved ones aren’t burdened by their care needs. As a result, long-term care insurance is becoming a popular addition to employer benefit plans.    

Turn to USRBP for a Voluntary Life/LTC Insurance Benefit That’s Robust and Affordable  

U.S. Retirement & Benefits Partners (USRBP) provides long-term care (LTC) insurance within a life insurance wrapper as a voluntary benefit that employees can opt for. The combined Life-LTC insurance protection (also known as hybrid coverage) fills the critical need for both a death benefit and a living benefit if care is needed. Coverage is guaranteed issue with no medical underwriting and available for employees, their spouse and dependents.   

USRBP offers employees better value and more robust coverage than the proposed state plans. Employers should consider acting quickly to get the benefit in place so workers will have the opportunity to opt out of future public plans and avoid the payroll or other taxes necessary to fund them.   

Take this opportunity to learn more about our Life-LTC insurance product options.