Healthcare Finance Policy in the U.S.: Long-Term Care for Baby Boomers

Healthcare Finance Policy in the U.S.
MHA520-Module 2- Case
Healthcare Finance Policy in the U.S.
The aging of the Baby Boomers present challenges to the healthcare system. Currently, Baby Boomers make up 15 percent of the population in America. All the boomers will be 65 years or older in 2013. By 2060, about one in individuals in the U.S. will be 65 years and above. At the same time, the number of Americans aged 85 years and above will triple. The increasing number of boomers means America would experience a greater demand for healthcare services, particularly long-term care (LTC).
LTC defines personal care and assistance that someone may receive long-term due to a disability or chronic illness that limits their ability to operate. Put alternatively, LTC is the assistance needed to cope or survive when disabilities impair someone from performing activities of daily living like shopping, and housekeeping (Feldstein, 2019). LTC services are needed by individuals who receive care from various providers. LTC is more pronounced among the boomer generation since most require "supportive services."
Elderly individuals face the challenge in performing activities of daily living (ADLs) (Feldstein, 2019). As a result, they require LTC to manage day-to-day activities. The primary providers of LTC in the U.S. are family members and friends. There are also formal providers of LTC services like nursing homes and home health care agencies. The need for LTC among older adults varies because of different factors. Women are at a higher risk than men because they tend to live longer. Most single older adults are more likely than married people to need LTC. Also, older adults that live a poor lifestyle, like poor diet and lack of exercise, have an increased risk and need LTC more (Feldstein, 2019). Lastly, individuals with a health and family history of chronic diseases need LTC more than those without such a history.
Aging in place enables older adults to remain in their community and with some independence instead of relocating to a residential care like a nursing home. Aging in place has social benefits over nursing homes and other facilities. The states that cover social support services permit individuals to remain in the community (Feldstein, 2019). Aging amid family and friends allows the elderly to remain close to loved ones. Additionally, aging in place has financial benefits. When people remain in their communities, they avoid the costly option of institutional care. Nursing homes and other facilities are costly; hence, aging could yield significant savings. The expenditures for nursing homes are high, which significantly increases costs for older adults. Remaining at home can save money for the elderly and their family members
There are various mechanisms for paying for LTC in the U.S. The first option is public financing through Medicaid. It covers a range of LTC services like nursing home services like custodial care and LTC services at home like visiting nurses and personal care services. The second mechanism is private LTC insurance. Americans can purchase a range of policies to finance their LTC needs. A majority of the LTC insurance comes from employers, with the federal government being the largest employer offering...