Milliman, Inc., a global consulting and actuarial firm, has launched its inaugural Long-Term Care (LTC) Index, providing an estimate of the expected lifetime costs for formal paid long-term care services and analyzing how these costs fluctuate based on factors such as geography and duration of care.
The Milliman LTC Index serves as a benchmark for various stakeholders, including individuals, payers, providers, and governments, to facilitate better financial planning for the impact of aging and potential long-term care needs. The index projects the benchmark cost to cover future LTC needs for an individual at age 65 to be $135,000, assuming services are paid at commercial insurance market rates without Medicaid or other reimbursement.
Formal paid long-term care encompasses a range of services and supports designed to assist older individuals with their personal care requirements. These services can be received at home, in facilities like nursing homes, or in community-based settings such as assisted-living facilities, provided by paid caregivers. While Medicaid is the primary payer for formal LTC services, individuals also utilize personal savings, long-term care insurance, government-sponsored programs, or informal care before qualifying for Medicaid.
As of 2025, the Milliman LTC Index provides further insights into these costs. For a 65-year-old female, the benchmark LTC cost is projected at $171,000, whereas for a male of the same age, it is $98,000. The index also indicates significant variability in costs depending on the length of need, ranging from less than $30,000 to over $660,000. Projections for 2025 show that 60% of women and 53% of men will utilize formal, paid long-term care services in their lifetime.
Chris Giese, a principal at Milliman and co-author of the LTC Index, stated, “Our findings show that LTC costs vary widely based on sex, geography, and length of need. With over 4.1 million Americans turning 65 each year through 2027, understanding the potential costs of long-term care is critical.” Giese added that “The LTC Index is designed to be a starting point to help individuals, payers and providers, and governments anticipate these expenses and make informed decisions about coverage, savings strategies, and risk management.”
Milliman, Inc., established in 1947, is an independent global consulting and actuarial firm with offices worldwide. The firm offers solutions across insurance, financial services, healthcare, life sciences, and employee benefits, leveraging its expertise, actuarial rigor, and advanced technology to address complex challenges.
