Three major trends are poised to reshape the long-term care (LTC) market landscape by 2025, according to a recent webinar featuring executives from OneAmerica Financial. The panel highlighted flexibility, simplicity, and technology as the driving forces of innovation in the industry.
“Consumers are looking for flexibility in their LTC coverage. They’re also looking for products that offer financial security and support for caregivers. They want simpler, more transparent solutions that can help empower them to make informed decisions,” said Jeff Levin, VP, care solutions distribution.
The United States is fast approaching a critical juncture in long-term care. Projections indicate that adults aged 65 and older will constitute over 20% of the American population in just five years. Panelists estimated that more than half of these seniors will require some form of long-term care. Furthermore, the number of Americans with Alzheimer’s disease is expected to nearly double by 2060. Concurrently, the demand for long-term care workers is projected to surge by over 40% by 2036, placing significant strain on the U.S. healthcare system, and spurring innovation in products and services.
“As costs continue to climb, people are looking for long-term care solutions that are not only affordable, but flexible, tech-driven and easy to understand. So, the future of long-term care is truly about giving people options that fit their needs and make sense for their lives,” explained Amy Chinn, VP, LTC claims and risk management.
“As the need for care rises, coupling with the way that family dynamics are evolving, people want support structures — whatever that might look like — to fit their specific family situation that also offers financial security,” added Jaime Mueller, VP, product and market innovation.
LTC Trend One: Flexibility
Flexibility will be “absolutely key” to the evolution of the LTC industry in 2025, according to the OneAmerica panel. This includes LTC solutions that incorporate caregiver benefits or offer diverse payment options, such as annuity products. The executives stressed the importance of informal caregivers, particularly family members providing unpaid care, who are often overlooked despite being essential to the long-term care system. Consumers are increasingly seeking solutions that address the physical, financial, and support needs of both care recipients and caregivers.
“Today, more than 53 million American adults provide unpaid care for a loved one. Flexibility is so important because they’re juggling both their work and personal responsibilities, while at the same time dealing with the emotional and financial strain that comes with a long-term care event,” Chinn noted.
Levin also pointed out that younger generations of informal caregivers are actively looking for LTC solutions that can accommodate their unique needs and protect their assets, as well as those of their family members.
“Sixty-five percent of all consumers say that flexibility in the types of care available for them to tap into is a top priority when they’re researching their options,” Mueller stated.
LTC Trend Two: Simplicity
A OneAmerica survey revealed that while 64% of LTC consumers acknowledge the significance of long-term care planning, only one-third feel confident in their decisions. The survey found that 31% of the unconfident respondents cited a lack of information as a major obstacle to purchasing long-term care insurance, and 44% actively sought guidance when exploring coverage options. The panelists highlighted that these results indicate that consumers not only need more simplicity in LTC, but also that they are open to discussing long-term care—they just feel overwhelmed.
“We need to make the planning part simpler, and that means simple products, intuitive products, products that are easy to understand. From a distribution partner, it’s probably more education,” Levin said.
The challenge for the financial services and insurance industries lies in balancing the provision of cutting-edge solutions with features and flexibility, all while keeping things straightforward, the panelists agreed.
LTC Trend Three: Technology
Technology is transforming the landscape of care and is expected to be critical in making LTC more accessible, efficient, and personalized, while also alleviating the burden on caregivers.
“There’s just a lot of incredible innovation that supports caregivers and those who want to stay at home,” Chinn explained.
“Aging at home is a goal for many of us and it’s really exciting to see how technology helps provide that with mobile cloud-based solutions, robotics, sensors, and advanced data analytics tools. This momentum isn’t slowing down; the long-term care software market is on track to hit over $11 billion by 2033,” she added.
Mueller mentioned AI tools that are reshaping the industry, from product design and carrier administration to the end consumer experience. These range from predicting LTC needs to building care plans and comparing solutions.
“If you’re not on board with AI, I think it’s time… Technology is here to stay. As the demand for care grows, these tools will be critical to ensure that our consumers and caregivers have all the resources and the support that they need,” Mueller said.
However, Levin underscored that the most effective technological solutions will find a balance between innovation and a personal touch.
