Life expectancy is projected to increase into the next century, increasing at a slightly greater rate for women. By the year 2020, older women will account for 85 percent of persons aged 65 and over who live alone. Since 1990, the costs per stay have increased at an annual average rate of 3 percent above the rate of inflation. Though government pays for a large portion of long term care costs, if baby boomers fail to plan ahead and purchase private insurance, much of the burden of rising nursing home costs will continue to fall on individuals and their families. Long term care is not covered by health insurance or Medigap supplements.
Medicaid patients depend on the government to determine the type of care received.
Due to growing publicity, Americans are waking up to this serious financial risk.