Public-Private Collaboration Is Key to Securing Long-Term Care Financing for Middle-Income Americans
The Milken Institute today released a new report highlighting innovative public and private sector solutions that can expand long-term care access and delivery for middle-income Americans. Published in collaboration with Genworth, "New Approaches to Long-Term Care Access for Middle-Income Households" examines financing, technology, and care challenges of the current system and offers recommendations to overcome these barriers.
Recent studies have found that more than half of middle-income seniors will not be able to afford the care they need. Meanwhile, though the pandemic laid bare the stark vulnerabilities of the long-term care system, it also ushered in a greater use of technology with telehealth and in-home care.
"Middle-income Americans are stuck between being unable to afford private long-term care, and not qualifying for government-sponsored programs like Medicaid. This can lead to a gap in care for a significant portion of the population," said Nora Super, senior director of the Milken Institute Center for the Future of Aging.
The report comes on the heels of a Financial Innovations Lab® the Milken Institute organized in fall 2020. The Lab convened an expert group of stakeholders from government, health, long-term care delivery, insurance, finance, and academia to develop solutions that can improve access to quality, affordable long-term care for middle-income households.
"The pandemic has brought greater awareness to the fault lines that exist in the current long-term care ecosystem. The concrete recommendations outlined in this report are critical to closing the gaps in providing much-needed, meaningful long-term care solutions for millions of middle-income individuals," said Tom McInerney, President and CEO of Genworth. "It will take collaboration and innovative thinking amongst stakeholders at the federal and state levels, from both the public and private sectors, to take the roadmap established in the report and effect the change that is so desperately needed."
Building on the Lab and further research, the Milken Institute proposes specific recommendations for public and private collaboration to successfully finance long-term care, including:
The Milken Institute will continue leveraging our network, engaging policymakers, and providing a platform to advance these solutions. We encourage stakeholders in the long-term care ecosystem to heed these recommendations and advance quality access to care for Americans across the socioeconomic spectrum.
"New Approaches to Long-Term Care Access for Middle-Income Households" is co-authored by Jason Davis and Caroline Servat. The full report can be downloaded here.
About the Milken Institute
The Milken Institute is a nonprofit, nonpartisan think tank that helps people build meaningful lives in which they can experience health and well-being, pursue effective education and gainful employment, and access the resources required to create ever-expanding opportunities for themselves and their broader communities. For more information, visit https://milkeninstitute.org/.
About Financial Innovations Labs®
Financial Innovations Labs® bring together researchers, policymakers, and business, financial, and professional practitioners to create market-based solutions to business and public policy challenges. Using real and simulated case studies, participants consider and design alternative capital structures and then apply appropriate financial technologies to them.
About the Milken Institute Center for the Future of Aging
The Milken Institute Center for the Future of Aging elevates awareness, advances solutions, and catalyzes action to promote healthy longevity and financial wellness. Through research, convening, advocacy, and partnership with leaders across key sectors, the Center works to improve lives and build a better future for all ages.
About Genworth Financial
Genworth Financial, Inc. ("Genworth") is a leading Fortune 500 insurance holding company committed to helping families achieve the dream of homeownership and address the financial challenges of aging through its leadership positions in mortgage insurance and long-term care insurance. Headquartered in Richmond, Virginia, Genworth traces its roots back to 1871 and became a public company in 2004.
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