Moreover, the public is generally not well educated about availability of community care services. This should serve as a wake-up call to the senior products industry, especially when you consider a recent study by Agency for Health Care Policy and Research. This agency found that at least 15 percent of nursing home residents could be placed at a lower level of care, such as in an assisted living facility. This is unfortunate, because community care is an attractive alternative for moderately impaired individuals, and is often more cost-effective. Such savings are significant, especially since the care often results in better quality of life.
Community care presents a major opportunity for the senior products market.
The greatest potential exists with transitional services, such as ECHO homes and CCRCs, which so far have been left largely untapped. There are also brand new community care benefits just waiting to be developed. My belief is that innovative insurance companies will start creating these benefits, introducing them as components of plans that incorporate a high level of choice and flexibility. Just as child day care is not an acceptable option for every parent, adult day care will not be attractive for every senior. And the desire for choice will only grow as the baby boomers, with their emphasis on individualism, reach retirement age.