logo
US Shutting Nursing Facilities Despite Ageing Population

US Shutting Nursing Facilities Despite Ageing Population

Miami Herald28-05-2025
The number of nursing facilities in the United States has declined sharply despite a rapid growth in the country's ageing population.
More than 820 nursing facilities closed across the U.S. between 2015 and 2024, according to the hospital bed company Opera Beds. It revealed that 45 out of 51 states saw a reduction in nursing facilities despite a nationwide increase in the older population.
It comes as more than 60 percent of states saw an increase in their citizens aged 85 and older between 2013 and 2023.
The trend threatens to put increasing strain on remaining nursing facilities and homecare services across the country. States with the fastest-ageing populations, such as Alaska, may need to invest substantially more money in healthcare services for the elderly in the coming years.
America's ageing population also poses significant economic challenges when combined with the country's declining birth rate. These include a drop in the working-age population, falling tax revenues, and an increase in individuals reliant on tax-based services like Social Security.
According to Opera Beds, America's population aged 85 and over grew by around 39 percent between 2003 and 2023, significantly higher than the wider population at around 17 percent.
Nevada saw the largest growth in its 85+ population over this period at 127 percent, followed by Alaska at 122 percent, and Hawaii at 100 percent.
These three states in particular face significant strains given the relative drop in facilities, along with the rising cost of living, the researchers warn.
Between 2015 and 2024, Opera Beds found that Montana saw the sharpest decline in nursing facilities, falling by 28 percent; followed by Maine on 21 percent; and Massachusetts on 17 percent.
The findings revealed that Arizona is the least prepared to care for its ageing population, with only 142 nursing facilities. This means there are 1,050 individuals over the age of 85 per available facility. Arizona is followed by Hawaii on 958 individuals per facility, and Florida on 836.
Meanwhile, Iowa is best prepared to care for its ageing population with 412 nursing facilities, and one per 174 residents over the age of 85.
"The state's strong infrastructure for elderly care may be attributed to its rural composition and policies emphasizing accessible healthcare services for older residents," the report stated.
"Additionally, Iowa's long-standing commitment to senior care ensures its ageing population has more options for assisted living and skilled nursing care than in many other states."
Opera Beds used data from the U.S. Census Bureau and the health policy research organization KFF.
Opera Beds wrote in its report: "The United States is experiencing a significant demographic shift as its population ages rapidly, with projections indicating a substantial increase in the number of older adults in the coming decades. As the proportion of individuals aged 60 and above grows, the strain on healthcare and homecare services... is becoming more apparent."
James Pomeroy, global economist at HSBC, told Newsweek previously that America's ageing population represented a "massive problem" when combined with the declining birth rate.
"In the U.S., the number of over-65s is expected to rise by more than 1.5 percent per year every year for the next decade," he said. "That means that when birth rates are so low, population pyramids becoming inverted very quickly. Less migration takes people out of the middle section of that pyramid, too, so you would expect the share of the U.S. population of pensionable age to rise quickly in the coming years as a result, which brings big social and economic change."
Opera Beds projects a substantial increase in the U.S. population aged 85 and older by 2043, estimating that Alaska could see its share more than double to two percent of the state's population.
Related Articles
Republicans' Chances of Flipping New York Governor Seat, According to PollsSome People in Florida Advised To Stay Inside Amid Warning of Saharan DustAmerican Bishops' War With Trump Admin Is Heating Up
2025 NEWSWEEK DIGITAL LLC.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Trump Megabill Threatens Low-Income Health Insurance And Nursing Homes
Trump Megabill Threatens Low-Income Health Insurance And Nursing Homes

Forbes

time7 hours ago

  • Forbes

Trump Megabill Threatens Low-Income Health Insurance And Nursing Homes

Port Washington, N.Y.: The residents of the Harborside, a retirement community that has filed for ... More bankruptcy three times in nine years, hold a rally to call on politicians and others to save their homes and life savings on Oct. 24, 2024 in Port Washington, New York. (Photo by Howard Schnapp/Newsday RM via Getty Images) In the scramble for Donald Trump's megabill, the Senate had to make changes to the House version to pass the body's rules for reconciliation. The result included large cuts in programs that serve the financially needy, including Medicaid. There are two major implications of the Medicaid cuts. One has been discussed widely: the loss of health insurance coverage for millions and the impact on the nation's healthcare system. The second has garnered less attention. There are enormous implications for the availability of nursing homes at a time when changes in demographics have made all forms of senior housing much more important in the U.S. The Medicaid Numbers Medicaid is an expansive program dually funded by the federal and state governments. KFF, formerly known as the Kaiser Family Foundation, has compiled extensive data on the program by analyzing federal government statistics. In 2023, Medicaid covered 19% of all hospital care spending. That was $283 billion out of $872 billion in total Medicaid expenditures, or 32%. Physician and clinical services were 14%, and retail prescription drugs, another 6%. There has been no Congressional Budget Office scoring on the Senate version because of timing. According to KFF's estimate, the Senate bill, which became the law, will reduce federal Medicaid spending by $1.04 trillion over the next ten years, or a $104 billion per year reduction on average. That will result in 11.8 million more people nationwide without insurance. Another measure is the amount of Medicare funding states would lose. Thirty-seven states would lose a minimum of 13% annually, and another five would lose between 7% and 10%. The lack of insurance has broader implications as well because the medical care those 11.8 million people need affects many more. KFF projects the cuts to ultimately affect an estimated 83 million people. In addition to those covered by Medicaid, there are state workers (Medicaid, again, isn't purely federal), and healthcare providers who are independent, working in clinics, and associated with hospitals. As U.S. health expenditures as of 2023 were 17,6% of gross domestic product according to the Peterson-KFF Health System Tracker, there is a potential significant impact on the entire economy. Senior Housing The senior housing real estate market incorporates several types of living arrangements, including independent living, assisted living, skilled nursing (also known as nursing homes), memory care, and in-home care. Around for many years, these options are becoming more important because of the country's aging demographics. From 1920 to 2020, the U.S. population age 65 and older grew about five times faster than the total population, as the Census Bureau has written. By 2020, that group numbered 55.8 million, or 16.8% of the U.S. population. By 2024, the 65-and-older group numbered 61.2 million. The under-18 population decreased by 0.2% to 73.1 million. The number of metro areas with more older adults than those under 18 grew from 58 to 112. By 2030, 20% of the population is expected to be 65 years or older, or 71.6 million, as S&P Global notes. The older people grow, the greater the need for specialized housing. However, Medicaid is the primary payer of nursing facility residency, covering 63% of the residents, KKF says. The program paid for 44% of the $147 billion the U.S. spent on long-term care in 2023. 'Most Medicaid enrollees using institutional [long-term care] are dually enrolled in Medicare, compared to just over half of those using home care,' the organization said. According to Senior Housing News, senior living broadly is somewhat insulated from the Medicaid spending cuts, but not immune. 'The bill likely means more financial challenges ahead for nursing homes, hospitals and community health centers and could push them to scale down services or even close their doors,' they wrote. It will take time for the effect of the cuts on senior housing, hospitals, and insurance for lower-income to become obvious. However, it could be disastrous.

Retired workers to see shocking change to Medicare in 2026
Retired workers to see shocking change to Medicare in 2026

Miami Herald

time8 hours ago

  • Miami Herald

Retired workers to see shocking change to Medicare in 2026

It's only an estimate - but if history is any guide, it's one you'll want to watch. Tucked deep inside the 267-page 2025 Medicare Trustees report is a projection that the standard monthly Medicare Part B premium could rise to $206.50 in 2026. That's an 11.6% jump from the $185 premium set for 2025 - and it would be the largest single-year increase since 2016, when premiums climbed 16.1%, from $104.90 to $121.80. This estimate, however, is not the final number. In fact, it could be even higher. Don't miss the move: Subscribe to TheStreet's free daily newsletter "There is certainly a potential for the monthly premium to increase further," said Marcia Mantell, president of Mantell Retirement Consulting. "And each person's share - 25% of the total premium - could rise before the final numbers are published later this year in the third or fourth quarter." Photo by Nappy on Unsplash Medicare Part B is the portion of Original Medicare that covers outpatient and preventive care, including: Doctor visits and lab testsCancer screenings and flu shotsDurable medical equipment (e.g., walkers, wheelchairs)Some prescription drugs administered in outpatient settingsHome health care and skilled nursingMental health services and ambulance transportation In 2025, the standard monthly premium is $185. Beneficiaries also face a $257 annual deductible, and once that's met, typically pay 20% coinsurance on covered services. Related: Social Security payment dates for July 2025: what you need to know Around 7-8% of the 68 million Medicare beneficiaries pay higher premiums due to income-related monthly adjustment amounts (IRMAA). Most preventive services are covered at no cost if the provider accepts Medicare assignment. The projected jump to $206.50 in 2026 may be just the beginning. According to the Medicare Trustees, monthly Part B premiums are expected to continue rising, reaching $347.50 by 2034 - a $141 monthly increase per person over nine years. And that 2026 estimate doesn't yet reflect potential changes from federal budget decisions or shifting health care spending trends. "There is certainly a potential for the monthly premium to increase further," said Marcia Mantell, president of Mantell Retirement Consulting. "And each person's share - 25% of the total premium - could rise before the final numbers are published later this year in the third or fourth quarter." In recent years, the Trustees' estimates have been remarkably accurate, often landing just a few dollars off the final figure. But as Katy Votava, founder of points out, these aren't just projections - they reflect a deeper cost trend. "Medicare Part B premium estimates typically track within a reasonable margin of error year to year," Votava said. "That said, Medicare B is in a hyper-inflation mode for the foreseeable future." She identified two long-term forces driving these increases: A shift of cost-intensive care from inpatient (Part A) to outpatient (Part B) settings, such as major surgeries or cancer treatments. The growing popularity of Medicare Advantage (MA) plans, which now cover 54% of all Medicare beneficiaries. "The MA program costs 20% more than Original Medicare," Votava explained. "Given these cost shifts, I anticipate a +/- 10% increase in Medicare Part B premiums going forward." According to the 2025 Trustees Report: About 72-75% of Part B funding comes from general revenues from the U.S. 25% comes from premiums paid by beneficiaries - totaling $139.8 billion in revenue includes interest on trust fund investments ($3.5 billion) and brand-name drug fees ($2.8 billion). These Treasury contributions are legally required to automatically adjust to match program costs - helping keep Part B financially balanced. One question on many retirees' minds: Will the "hold harmless" rule kick in to protect benefits from the premium hike? According to The Senior Citizens League, the projected Social Security cost-of-living adjustment (COLA) for 2026 is 2.5% - the same as for 2025. That translates to a $50 per month increase for someone receiving the average $2,000 Social Security benefit. Since the projected Part B premium increase is $21.50, most beneficiaries will not be protected by the hold harmless provision - because the COLA is more than enough to absorb the increase. Related: Young workers face stark Social Security reality "The COLA would have to come in below 1.06% for hold harmless to apply broadly," Mantell explained. "That's highly unlikely. Only Social Security recipients receiving less than about $800 per month might be affected if the COLA is 2.5%." These might be, she said, dependent spouses whose spouse had low wages and lower-than-average benefits. Or an individual worker who spent many years outside the workforce and has many $0 years in their benefit calculation." According to the Social Security Administration, nearly 4 million Social Security beneficiaries receive less than $800 per month. She added that historically, those subject to the Windfall Elimination Provision (WEP) or Government Pension Offset (GPO) often had low benefits and would have been in the hold harmless group. But she noted, "With the Social Security Fairness Act eliminating those reductions, this should not be the case for most." There's no way to avoid the premium increase, Mantell said. "By law, each Medicare beneficiary pays 25% of the overall premium," she explained. "It is deducted from their Social Security payment automatically. If not yet claiming Social Security, premiums are generally paid quarterly from your checking account or using the online options at Medicare." But that doesn't mean you're powerless. Mantell offers these five planning steps: Forecast your 2026 healthcare budget "The most important step to take now is to forecast your own budget for 2026," Mantell said. "Consider all healthcare costs you can reasonably expect - there are often more costs than just Part B premiums." (Use Mantell's free worksheet: Boomer Retirement Briefs – Estimating Your Medicare Costs.)Learn to use the Medicare Plan Finder tool "Several major insurance companies are no longer paying brokers to sell their plans, so you will not necessarily see the lowest-cost providers this fall," she said. "You need to find the lowest premium plans on your own from now on." Use this tool, Medicare Plan Compare, during Open Enrollment (Oct. 15–Dec. 7).Call your members of Congress "Tell them you are not happy about such huge projected increases in your Part B premiums," Mantell advised. "This is a significant burden to your budget along with all the other increases in goods and services and local taxes, etc."Explore property tax relief locally "Talk to your town clerk or other local official who can help you find property tax savings opportunities in your town," she said. "In some towns, you can work a certain number of hours to reduce property taxes."File your taxes using IRS Form 1040-SR "It's generally the same as the regular 1040," Mantell noted, "but it includes the higher standard deduction for seniors." In addition to budgeting and plan shopping, it's wise to think about how rising premiums could impact your long-term investment plan. "I think people might need to stress-test their portfolios," said T. Rowe Price Senior Research Analyst Sudipto Banerjee. "Run your portfolio projections under current spending assumptions, and then test what happens if you increase your health care spending projections by X% (pick any number). If you don't like the results, you'll probably need to save more." If the Medicare Trustees are right - as they have been in recent years- beneficiaries will face the largest premium hike in a decade next year. And with health care costs continuing to outpace inflation, it puts pressure on retirement budgets. "There is certainly a potential for the monthly premium to increase further," Mantell warned. "And each person's share…could rise." Got questions about retirement, email What You Need to Know about Medicare Part D The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.

Medigap Plan N Pros and Cons: What to Know
Medigap Plan N Pros and Cons: What to Know

Health Line

time12 hours ago

  • Health Line

Medigap Plan N Pros and Cons: What to Know

Medigap Plan N offers a balance of comprehensive coverage and affordable premiums. It is one of the more robust Medigap offerings, but there are some gaps in its coverage. Medicare supplement insurance, also called Medigap, is private insurance that helps cover the out-of-pocket costs of Original Medicare (parts A and B). With Original Medicare, beneficiaries incur various expenses despite Medicare's coverage. These include deductibles, coinsurance, and copayments. Third-party insurance companies sell Medigap policies to help cover these additional expenses. Medigap plans are not available to people enrolled in Medicare Advantage plans. Medigap Plan N is one of 10 Medigap plans offered in 2025. Although many companies can sell Plan N policies, their coverage is standardized nationwide (except in Massachusetts, Minnesota, and Wisconsin, which have unique Medigap rules). What is Plan N? Plan N is the third most popular Medigap offering behind plans G and F. It accounted for roughly 10% of Medigap plans sold in 2023, according to health policy research nonprofit KFF. As with Plan G, Plan N covers most of the costs of Original Medicare. But there are a couple of notable differences: Plan N does not cover Part B excess charges. Excess charges are fees you may pay if you visit a doctor who does not accept Medicare assignment. They may be up to 15% more than the Medicare-approved amount for a given service. Plan N does not cover all Part B copayments. With Plan N, you still have copayments of up to $50 for emergency room visits and $20 for some office visits. Since Plan N and other Medigap plans only help cover costs associated with Original Medicare, they do not cover costs related to vision, dental, or hearing care, nor do they cover drug costs. To receive these types of benefits, you would need a Medicare Advantage (Part C) plan. Medigap Plan N pros and cons Pros of Medigap Plan N comprehensive coverage of major medical expenses no restrictions on provider access lower premiums than Plan G despite offering similar coverage complete coverage of Part A deductible predictable out-of-pocket expenses coverage of 80% of emergency care during foreign travel What Plan N covers Plan N offers coverage for a wide range of costs. These include: 100% of the Part A deductible 100% of the Part A coinsurance and hospital costs 100% of the Part A coinsurance or copayment for hospice care 100% of the skilled nursing facility coinsurance 100% of Part B coinsurance the first 3 pints of blood 80% of foreign emergency care What Plan N does not cover Despite Plan N's extensive coverage, there are a few things it does not cover. These include: the Part B deductible Part B excess charges dental, hearing, and vision care prescription drugs long-term skilled nursing care Who should consider Plan N? No single Medicare plan is right for every person. Coverage decisions depend on personal factors, such as your medical needs and financial constraints. Plan N may be right for you if you have moderate healthcare needs and want predictability in your costs. Although you'll have higher monthly premiums with Plan N than with most Medicare Advantage plans or Original Medicare alone, you'll have very few out-of-pocket expenses for the care you receive. Those seeking a balance between premiums and coverage may also wish to consider Plan N, particularly if they visit healthcare professionals who accept Medicare assignment. Plus, if you're willing to incur small copayments in exchange for lower monthly premiums, Plan N may be right for you. How to purchase Medigap Plan N You're only eligible to buy a Medigap policy if you're enrolled in Original Medicare. If you have a Medicare Advantage plan, companies are prohibited by law from selling you a Medigap plan. The best time to sign up for Plan N is during your Medigap open enrollment period. This is a 6-month window that begins when you sign up for Part B and are 65 years or older. If you wait until after this period, insurance carriers can charge you higher premiums or deny coverage based on preexisting conditions. To see Plan N options in your area, use the coverage finder tool on After entering your ZIP code, you'll see plans from different insurance carriers in your area. Scroll down to Plan N at the bottom and select 'View Policies.' To see the most accurate pricing information, contact the company offering your desired plan and enroll directly with a representative. Alternatively, you can use a third-party insurance broker to help you sign up. Summary Medigap Plan N is supplemental insurance for individuals who have Original Medicare. It covers most out-of-pocket costs associated with Original Medicare. Plan N is a popular Medigap option. Some of its benefits include comprehensive medical coverage, lower premiums, no restrictions on provider access, and predictable out-of-pocket expenses. Some drawbacks of Plan N include copayments for office visits and emergency room visits and no coverage of Part B excess charges. Plan N may be right for individuals seeking a balance between robust coverage and lower monthly premiums than similar plans. The information on this website may assist you in making personal decisions about insurance, but it is not intended to provide advice regarding the purchase or use of any insurance or insurance products. Healthline Media does not transact the business of insurance in any manner and is not licensed as an insurance company or producer in any U.S. jurisdiction. Healthline Media does not recommend or endorse any third parties that may transact the business of insurance.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store