Americans Know Less About Long Term Care Than They Think, AARP Survey Says

More than half of Americans over age 45 say they are "somewhat familiar" with their options for long term care services, but the majority are uninformed about the costs and funding sources available for such care, according to an AARP study released Dec. 11. The study, titled "The Costs of Long-Term Care: Public Perceptions Versus Reality," was based on a telephone survey of 1,800 American adults ages 45 and older conducted from July 20 to Aug. 14, 2001. According to the survey, 60% of respondents said they are "somewhat familiar" with their options for long term care, but only 15% could estimate the cost of nursing home care within 20% of the national average cost of $4,654. Nearly one-fourth said they did not know the cost, and 51% underestimated nursing home care costs. Thirty-one percent of those polled said they had insurance that would cover the cost of a long term stay in a nursing home. However, the Health Insurance Association of America estimates that just 6% of Americans have purchased long term care insurance policies. Although Medicare does not cover long term stays at nursing homes, more than half of respondents, including those who say they are "very familiar" with long term care, believe that Medicare will cover the cost of a long term stay, and about 25% say they would rely on the program to pay for such care. Just under half of those interviewed felt they were "very" or "fairly" prepared for the "financial challenges" that come with paying for long term care, and 46% say they are "not very" or "not at all" prepared. According to AARP, the findings indicate that many Americans over age 45 have a "false sense of financial preparedness" when it comes to paying for long term care (AARP release, 12/11). AARP President Tess Canja said, "People are not prepared for the choices they will have to face ... and the clock is ticking." The insurance industry estimates that the number of people needing long term care will rise from seven million people this year to 12 million in 2020 (Hallifax, AP/Tallahassee Democrat, 12/12). "If you do not know the reality, you cannot prepare for it. For far too many people, the costs of long term care will prove to be a crushing burden," Canja said (Hollis, South Florida Sun-Sentinel, 12/12).