Long-Term Senior Care Costs Drain Ohio Families’ Wealth, Study Finds
New study reveals Ohio families are forced to exhaust life savings to near-poverty levels before qualifying for Medicaid coverage of senior care costs.
COLUMBUS, OHIO — Long-term care costs for seniors are draining wealth from Ohio families, forcing middle-class residents to exhaust their savings before qualifying for government assistance, according to a new study published in April by the Roosevelt Institute.
The report reveals that many Americans mistakenly believe Medicare covers long-term care expenses, when in reality the costs fall to families until they meet strict income and asset requirements for Medicaid coverage.
“The result is a system that drains the resources of low-income and middle-class families, eroding their ability to build or transfer wealth across generations,” the report stated. “In this way, long-term care is both a symptom and a cause of the nation’s deepening wealth divide. It is a force shaping who gets to grow old with security and who bears the financial cost of care.”
Widespread Misconceptions About Coverage
The study found that 62% of those surveyed incorrectly think Medicare, the health program for people over 65, pays for long-term care. Instead, these services are financed through Medicaid, the state and federal health program designed for low-income Americans.
This misconception leaves many families unprepared for the financial reality of senior care costs, which can quickly deplete lifetime savings.
Ohio’s Strict Asset Requirements
To qualify for Medicaid coverage of long-term care in Ohio, individuals must meet stringent financial criteria. According to the American Council on Aging, individual assets must be less than $2,000 and monthly income cannot exceed $2,982.
These requirements mean that regardless of how much someone saved during their working years, they must spend down their assets to near-poverty levels before receiving government assistance. Families are forced to pay out of their own pocket until they reach the $2,000 asset threshold.
Impact on Wealth Transfer
The current financing system creates a significant barrier to intergenerational wealth transfer, particularly affecting middle-class families who have accumulated modest savings over their lifetimes. Unlike wealthy families who can afford private long-term care or have sufficient assets to weather the costs, middle-class families often see their entire life savings consumed by care expenses.
The Roosevelt Institute study highlights how long-term care costs contribute to growing wealth inequality in the United States. Families that might otherwise pass down modest inheritances or help younger generations with education or home purchases instead find themselves financially depleted by senior care needs.
As Ohio’s population continues to age, the financial strain on families is expected to intensify, making long-term care financing an increasingly pressing economic issue for the state’s residents.
