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B1    Need
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    The Need For Long Term Care

    We are asked time and time again for statistics that help support the
    need for  Long-Term Care insurance.  We have compiled the following 
    facts to help you answer the questions that may come up with your
    particular client or situation.

B1    Demographics
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    * 17% of the population was 65+ in 1990

    * 21% of the population will be 65+ in 2030
    
    * Almost 50% of the people 65+ can expect to spend some time in a
     nursing home.

    * 5% of the 65+ population is in a nursing home at any given time.
      This number is expected to grow as people live longer and medical
      technology improves.

B1    Number of Beds
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    * To keep up with the growth in the elderly population and the 
      advances in medical technology, we need to build 320 one hundred
      bed nursing homes per year.

B1    Younger Adults
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    * By the year 2000, 40% of those in a nursing home will be younger
      adults being kept alive by medical advances.

B1    AARP Study
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    * A survey conducted by AARP indicated that 2 out of 3 respondents 
      had a direct or indirect experience with long-term care.

B1    Married
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    * Only 15% of nursing home residents are married.

B1    Alzheimer's
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    * Half of all nursing home patients suffer from Alzheimer's disease.

B1    Not Hospitals
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    * 50% of the people who enter a nursing home do not come from a
      hospital.

B1    Informal Care
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    * For every one person in a nursing home, there are another 2 people
      in the community in need of long-term care services.

    * Between 70% and 90% of all long-term care services being received
      at home are delivered by informal care givers such as neighbors 
      and relatives.

    * 70% of the caregivers are women; the average age of the caregivers
      is 57.


B1    Home Care
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    * In 1987, less than half (47%) of all home care agencies were
      certified by Medicare.

B1    Activity of Daily Living
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    * In 1985, 6 million out of 28 million Americans had at least
      1 Activity of Daily Living limitation.

    * The prevalence Activity of Daily Living limitations is an 
      importannt indicator of the need for long-term care in the 
             
        * 23% of the population 65+ responding to an AARP Survey
          conducted by John Hopkins University in 1987 had functional
          limitations.

    * Almost half (49%) of the people 85 and older had at least 1  
      Activity of Daily Living limitation caompared to:

        * 17% for people  between 65 and 74

        * 28% for people 75 to 84

B1   Cognitive Impairment
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    * Of people who suffer some type of cognitive impairment, 63%
      experience disorientation or memory impairment and 47% are
      senile or have organic brain syndrome.
    

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B1    Length of Stay                    
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    Once the need for Long-Term Care insurance has been established,
    people need to know what statistical information is available to
    help them choose a plan of benefits that will meet their needs 
    and at the same time be affordable to them.

B1    Average Length of Stay
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    * The average length of stay for people who stay more than 
      3 months is 2.5 years.


B1    Frequency of Stay
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    * Here is a breakout of the most recently available length 
      of stay statistics:

      * 31% stay less than one month
      
      * 20.6% stay from 1-3 months

      * 11.2% stay from 3-6 months

      * 11.2% stay between 6 months and 1 year

      * 15% stay from 1-3 years

      * 10% stay 3 or more years


B1    Median Length of Stay
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    * The median length os stay for those who are discharged
      is 60 days.

    * The median length of stay for those who die is 130 days.
    
    * Median length of stay by age:

        * 38-89 - 263 days

        * 90-94 - 302 days

        * 95+   - 791 days


    * Women are twice as likely to use a nursing home as men, a
      reflection of their living longer.


B1    Home Care Length
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    * Three out of four people leave the nursing home alive.

        * 34% require care for one year or less

        * 10% require care for between one and two years

        * 34% require care for between two and five years

        * 22% require care for more than five years


                  
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B1    Cost
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    * People need to know the costs of nursing homes and home 
      health care in order to determine not only the type of plan 
      they should purchase, but also to be aware of the strain  
      that long-term care can place on finances.

B1    Average Cost
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    * The average cost of one year in a nursing home is $30,000.
      In New York and Massachusetts, it's more than $60,000.


B1    Medicare/Medicaid
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    * Less than 5% of all nursing home expenses are paid by
      Medicare.

    * 43% of all Medicaid dollars are spent on nursing home 
      expenses.

    * Medicare pays only about 25% of Home Care costs.


B1    Deplete Savings
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    * Two thirds of all single people and one third of all 
      married people can expect to deplete all their savings 
      within 13 weeks after a nursing home confinement begins.


B1    Health Care Dollars
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    * Eight out of every ten dollars spent on health care goes to
      long-term care.

B1    Family Paid
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    * More than 40% of all long-term care costs are paid by
      individuals or their families.


