Milliman launches Long-Term Care Index, providing a benchmark for expected lifetime long-term care costs

SEATTLE--(BUSINESS WIRE)--Milliman, Inc., a premier global consulting and actuarial firm, today released its first Long-Term Care Index (LTC Index), which estimates the expected lifetime costs of formal paid long-term care (LTC) services and how those costs can vary by factors such as geography and length of claim. Milliman’s LTC Index provides a benchmark that can be used by LTC stakeholders to better plan for the financial impact of aging.

What constitutes formal paid long-term care?

LTC encompasses a range of services and supports to help older individuals meet their personal care needs. Individuals may receive LTC at home, in a facility setting like a nursing home, or in a community-based setting like an assisted-living facility. LTC can be provided “formally” through paid caregivers or informally by family/unpaid caregivers. While Medicaid is the largest payer of formal/paid LTC services, individuals also rely on personal savings, LTC insurance, government-sponsored programs, or other resources (such as unpaid care) before qualifying for Medicaid.

What is the average lifetime long-term care cost for a 65-year old?

According to the Milliman LTC index, as of 2025:

• The projected benchmark cost to cover future LTC needs for an individual at age 65 is $135,000, assuming services are paid at commercial insurance market rates without Medicaid or other reimbursement.
• The benchmark LTC cost for a 65-year-old female is $171,000; for a male it is $98,000.
• The LTC Index cost can vary greatly by length of need – ranging from less than $30,000 to over $660,000.
• The 2025 LTC Index projects that 60% of women will use formal, paid services in their lifetime while the same is true for 53% of men.

"Our findings show that LTC costs vary widely based on sex, geography, and length of need,” said Chris Giese, a principal at Milliman and co-author of the LTC Index.

"With over 4.1 million Americans turning 65 each year through 2027, understanding the potential costs of long-term care is critical. 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,” Giese adds.

To view the complete LTC Index, including information on the variation in costs, visit https://www.milliman.com/en/insight/2025-milliman-long-term-care-index.

About Milliman

Milliman leverages deep expertise, actuarial rigor, and advanced technology to develop solutions for a world at risk. We help clients in the public and private sectors navigate urgent, complex challenges—from extreme weather and market volatility to financial insecurity and rising health costs—so they can meet their business, financial, and social objectives. Our solutions encompass insurance, financial services, healthcare, life sciences, and employee benefits. Founded in 1947, Milliman is an independent firm with offices in major cities around the globe. Visit us at milliman.com.