California Partnership for Long Term Care

Will Boomers Bust the Budget?

Aging baby boomers and higher health care costs will have major impacts on long-term careCare given to someone who can no longer perform activities of daily living. in the coming decade. A recent study by the University of California, Berkeley shows that the unprecedented size and chronic illnesses of California's boomers will overwhelm the state's current capacity to meet growing long-term care needs.

By 2023, California can expect to see:

  • A 44 percent increase in seniors, from 4.8 million today to 6.9 million by 2023
  • Doubling of Medi-Cal long-term care costs, from $6.5 billion to $12.4 billion annually by 2023
  • Eighty-eight percent increase in public expenditures for institutional long-term care

Since nearly 90 percent of long-term care is provided by family and friends, the growing demands not only impact state coffers, but family caregivers as well. Family caregivers, the study says, report higher levels of mental and physical problems and are generally uncompensated for their services. For their employers, the demands of caregiving also hurt productivity and increase absenteeism.

Californians should strongly consider planning ahead to ensure they live their later years with dignity and quality. At some point, they may require in-home or nursing home assistance with basic, daily functions that are often taken for granted. Without proper planning, paying for long-term care can be a devasting financial burden. Click here to learn more about options for long-term care.

Infographic: Growing Demand for Long-Term Care - Impact on the State of California

Infographic: Growing Demand for Long-Term Care - Impact on Baby Boomers