Long-term care can be expensive, with a range of well over $100,000. However, financial advisers say many families are not prepared to manage expenses.

"People don't plan ahead," said Carolyn McClanahan, a physician and certified financial planner based in Jacksonville, Florida. "It's a huge problem."

According to a 2022 report published by the U.S. Department of Health and Human Services and its city colleges, 57% of Americans aged 65 will cause severe enough disability to require long-term care at the age of 65. For example, such disability may include dementia, Alzheimer's disease or Parkinson's disease, or stroke complications such as dementia, Alzheimer's disease, or neurological diseases.

HHS-Urban reports that the average future cost of long-term care for people aged 65 today is about $122,400.

But some people need to take care of for many years and pay a huge cost for a lifetime, which is hundreds of thousands of dollars - "It's an impossible thing for many Americans."

As life spans grow, as the U.S. population ages, the number of people in need of care expands.

"It's obvious that the amount of savings (workers) in retirement, checking or savings accounts don't have most savings, and most people don't have long-term care insurance," said Bridget Bearden, a research and development strategist at the Employee Welfare Institute.

"Where does that money come from?" she added.

According to the HHS-Urban report, most people who need long-term care “spend relatively less” will spend at least $100,000 on future care.

The cost from state to state can vary greatly and depends on the type of service.

The cost of home health assistants nationwide is about $6,300 per month, and a private room in nursing homes is $9,700, according to 2023 data from insurance company Genworth.

It seems that many families don’t know the potential costs of themselves or loved ones.

For example, according to a new poll by the Employee Welfare Institute, 73% of workers say at least one adult may need to provide them with long-term care.

However, EBRI estimates that only 29% of these future caregivers may account for at least a portion of the bill – estimates future care costs. Among those who do so, 37% believe the price will be below $25,000 a year, the organization said.

The EBRI survey voted to survey 2,445 employees aged 20 to 74 in late 2024.

Experts say most of the funds for long-term care are likely to be out of pocket.

Experts say health insurance generally does not cover long-term care services, and Medicare doesn’t cover most expenses.

For example, Medicare may cover “skilled” care in the first 100 days section, said McClanahan, a member of the CNBC Financial Advisory Board. She said, for example, when patients need nurses to help with rehabilitation or managing medicine.

But Medicare doesn't cover "customized" care when someone needs help with daily activities such as bathing, dressing, using the bathroom and eating. According to the HHS-Urban report, these basic daily tasks constitute the majority of long-term care needs.

Medicaid is the largest payer for long-term care expenses today, Bearden said. Not everyone is eligible, though: Many people who receive Medicaid benefits come from low-income families, Bearden of Ebrie said. To obtain benefits for long-term care, families may first have to exhaust most of their financial assets.

"You basically have to be poor," McCranahan said.

Republicans in Washington are weighing Medicaid as part of a large tax plan. Experts say that if successful, Americans may have difficulty getting Medicaid for long-term care.

According to the Congressional Research Services, few families have insurance policies specifically targeting long-term care risks: about 7.5 million Americans have some form of long-term care coverage in 2020.

By contrast, more than 4 million baby boomers are expected to retire from 2024 to 2027.

Washington state offers residents a public long-term care insurance plan, and other states such as California, Massachusetts, Minnesota, New York and Pennsylvania are exploring their own residents.

McLanahan said that long-term care insurance policies make the most sense for those who need care in the long term. This may include those at high risk of dementia or who live long in family history, she said.

McClanahan recommends choosing A mixed insurance policy combining life insurance and long-term care benefits; only traditional independent policies for long-term care are often expensive, she said.

She said that you should also be vigilant about the benefits of this policy.

For example, the “reimbursement” policy requires the insured to choose from the list of preferred providers and submit a receipt for repayment. She said that for some people, especially older people, this can be difficult without assistance.

McClanahan recommends a “indemnification” policy, insurers usually write benefits checks immediately if the insured is eligible for assistance, and they can spend the money. However, the amount of benefits is usually lower than the reimbursement policy, she said.

“The challenge with long-term care costs is that they are unpredictable,” McLanerhan said. “You don’t always know when you get sick and need care.”

McClanahan believes that the biggest mistake people have with respect to long-term care is that they do not consider long-term care needs and logistics, or discuss with their families before they need care.

For example, considering the following issues may be needed, McLanerhan said:

• Do I have any family members who will help provide care? Will they provide financial assistance? Do I want to self-insurance?
• What is financial logistics? For example, who will help you pay your bills and file an insurance claim?
• Do I have good pre-health care instructions? For example, as I get sick, would I keep my family going to keep me alive (which increases the cost of long-term care), or would I move care and hospice?
• Do I want to age? (This is usually a cheap option if you don't need 24 hours of care, McClanahan says).
• If I want to age, is my house set for this? (For example, are there a lot of stairs? Is there a small bathroom that is difficult to operate the walker?) If not, can I make my house age? Will I move to a new home or another state where long-term care costs are lower?
• I live in a rural area and can it be difficult to get long-term care?

Proactiveness can help families save money because responsiveness determines often “expensive prices.”

“When you think about it in advance, it makes decisions more frankly,” she said.