Federal and state governments look for ways to reduce the cost of long term care $($LTC$).$ How do LTC insurance and managed LTC insurance programs potentially provide this reduction in cost$?$

Federal and state governments look for ways to reduce the cost of long term care $($LTC$).$ How do LTC insurance and managed LTC insurance programs potentially provide this reduction in cost$?$

Keep in mind that only five percent of those individuals over age $65$ are in nursing homes. However, that percentage increases sharply over the age of $85,$ and the percentage of those in need of some long$-$term care service $($home$,$ community, or some institutionally based services$)$ is much more than five percent after age $65.$

Insurance of any kind is a gamble and since only four percent of Americans have taken out LTC insurance, most do not want to take the risk.

Managed LTC Insurance$/$Programs are the future of financing LTC$.$ Facilities are being approached by MLTC organizations to contract for Medicaid Services. This is a new way of financing Medicaid individuals in nursing facilities. Some MLTC Programs such as PACE finance the Medicaid$/$Medicare eligible individuals. They have been successful for several years.