OneAmerica panel: 3 trends will shape long-term care in 2025

Three trends that will shape the market for long-term care in 2025 are flexibility, simplicity and technology, according to a panel of OneAmerica Financial executives who spoke during a recent webinar.

“Consumers are looking for flexibility in their LTC coverage. They’re also looking for products that offer financial security and support for caregivers. They want simpler, more transparent solutions that can help empower them to make informed decisions,” Jeff Levin, VP, care solutions distribution, said.

The United States is expected to hit a long-term care crisis in just five years, when adults 65 and older are projected to make up more than 20% of the American population. The panelists said more than half of those American seniors will likely need some form of long-term care.

Additionally, they noted the number of Americans with Alzheimer’s is expected to nearly double by 2060 and the demand for long-term care workers is expected to jump by over 40% by 2036, putting pressure on the US healthcare system and driving innovation for products and services.

“As costs continue to climb, people are looking for long-term care solutions that are not only affordable, but flexible, tech-driven and easy to understand. So, the future of long-term care is truly about giving people options that fit their needs and make sense for their lives,” Amy Chinn, VP, LTC claims and risk management, said.

“As the need for care rises, coupling with the way that family dynamics are evolving, people want support structures — whatever that might look like — to fit their specific family situation that also offers financial security,” Jaime Mueller, VP, product and market innovation, added.

LTC trend one: Flexibility

Flexibility, such as LTC solutions that incorporate caregiver benefits or offer payment options or annuity products, will be “absolutely key” to innovation in the LTC industry in 2025, OneAmerica’s panelists said.

They emphasized that informal caretakers, namely relatives providing unpaid care for a loved one, are often overlooked but are an essential part of the long-term care system. Consumers have begun looking for solutions that take care of individuals physically, help financially, and also offer caretaker support.

“Today, more than 53 million American adults provide unpaid care for a loved one. Flexibility is so important because they’re juggling both their work and personal responsibilities, while at the same time dealing with the emotional and financial strain that comes with a long-term care event,” Chinn noted.

Levin also noted that informal caregivers in the younger generations are increasingly looking for LTC solutions that can adapt to unique needs and protect assets as well as family members.

“Sixty-five percent of all consumers say that flexibility in the types of care available for them to tap into is a top priority when they’re researching their options,” Mueller pointed out.

LTC trend two: Simplicity

A OneAmerica survey found 64% of LTC consumers acknowledge that long-term care planning is important, but only a third feel confident about their decisions. Thirty-one percent of those unconfident respondents cited a lack of information as a key barrier to purchasing long-term care insurance, while 44% actively sought guidance when seeking coverage.

According to panelists, these results indicate not only a need for more simplicity, but that consumers do want to talk about long-term care — they just don’t know how to go about it and can feel overwhelmed by it.

“We need to make the planning part simpler, and that means simple products, intuitive products, products that are easy to understand. From a distribution partner, it’s probably more education,” Levin said.

The key for the financial services/insurance industry is finding the balance between providing top-of-the-line solutions that offer a lot of flexibility but are also simple, panelists noted.

LTC trend three: Technology

Technology is already transforming care, and it’s expected to be critical in making LTC more accessible, efficient and personalized while also helping to ease the burden on caregivers.

“There’s just a lot of incredible innovation that supports caregivers and those who want to stay at home,” Chinn said. “Aging at home is a goal for many of us and it’s really exciting to see how technology helps provide that with mobile cloud-based solutions, robotics, sensors, and advanced data analytics tools. This momentum isn’t slowing down; the long-term care software market is on track to hit over $11 billion by 2033.”

Mueller mentioned AI tools that are transforming the industry, from the product, carrier administration and end consumer sides, whether it’s predicting LTC needs, building plans of care, comparing solutions or more.

“If you’re not on board with AI, I think it’s time… Technology is here to stay. As the demand for care grows, these tools will be critical to ensure that our consumers and caregivers have all the resources and the support that they need,” she said.

However, Levin suggested that the most effective tech solutions will strike a balance between innovation and personal touch.

OneAmerica Financial is a financial services firm offering life insurance, annuities, long-term care solutions and other retirement planning products.

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