Most of the nation's 33 million adults over age 65 are free of disability and do not need long-term care. About 5 percent of all elderly or 1.7 million older adults lived in nursing homes and other institutional settings in 1994. People who live to 65 have a 35 to 49 percent risk of spending some time in a nursing home before they die.
Women are at higher risk than men, largely because they live longer.
Relatively short stays in nursing homes are quite common. Very little came from private insurance. Many people mistakenly believe that Medicare pays for long-term care. Although its service coverage rules have been liberalized since 1989, Medicare still basically covers only short-term nursing home and home health care after a serious illness or accident. For the 50 percent of short-stay nursing home patients who return home alive, a relatively short nursing home stay can mean a lower income and fewer assets to pay for other emergencies.