Who pays for caring for older people in our community

The majority of older people will enjoy good health and productive lives in their later years. But in 2000 there were an estimated 167,000 persons over age 65 in Ohio experiencing severe disability and requiring daily assistance in caring for themselves. 319,000 older persons were moderately disabled, needing help with at least one ADL, or two IADLs. The severely disabled population will increase to 172,000 by 2010 and to more than 450,000 by 2050. The state of Ohio will face not only an increasing older population, but also an increasing number of disabled older persons. This study examined who provides and pays for the care. First we determined the number of individuals with disability who receive formal care, informal care, and those with unmet care needs. Next, the value of the care was estimated. The more challenging part of this project was estimating the number of hours of care needed per each specific ADL deficiency and the value of that care, if purchased. We also examined the opportunity cost of caregiving and the impact of lost future income on financing the caregiver's own future care. The implications of maintaining the existing policies regarding long-term care financing during the years 2010-2050 when the baby boom generation reaches age 65 and beyond were explored for Ohio, and alternative scenarios are presented graphically.