Milliman LTC Index Highlights $135K Average Cost, Gender Disparity
Event summary
- Milliman launched its first Long-Term Care Index (LTC Index) on January 22, 2026.
- The index estimates the average lifetime cost of formal long-term care at $135,000 for a 65-year-old in 2025.
- The average cost is $171,000 for women and $98,000 for men.
- Approximately 60% of women and 53% of men are projected to use formal, paid long-term care services in their lifetime.
- The index projects 4.1 million Americans will turn 65 annually through 2027.
The big picture
Milliman’s LTC Index provides a much-needed benchmark for a market facing increasing demand and significant financial risk. The substantial gender disparity in projected costs highlights the need for tailored financial planning and insurance solutions. The index’s release underscores the growing importance of actuarial data and risk modeling in navigating the challenges of an aging population and the rising costs of care.
What we're watching
- Demographic Shifts
- The index's projections of LTC usage rates will be heavily influenced by the ongoing aging of the US population, requiring continuous recalibration of cost estimates.
- Regulatory Response
- Government policies regarding Medicaid and other long-term care funding sources will significantly impact the commercial LTC insurance market and the index's benchmark costs.
- Insurance Innovation
- The LTC insurance industry will likely respond to the index's data by exploring new product designs and risk mitigation strategies to improve affordability and market penetration.
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