Aging-in-place
Insurers and startups are innovating quickly to meet the demand for older adults to age at home.
$151B
SPENT IN 2019 SUPPORTING OLDER ADULTS AGING AT HOME*
*excludes healthcare expenses
Insurers are enabling independence for older adults living securely at home.
Medicaid and Medicare are the two major publicly funded health insurance payors for care. They both reimburse private providers, creating a huge opportunity for companies with unique offerings for older adults, like Papa, which provides companionship and on-demand assistance for daily tasks, and Age Bold, an online fitness program.  Medicare Advantage plans, in particular, cover at least one care-related benefit and are experiencing a high number of enrollees and claims against those benefits.

The rules for the benefits that Medicare Advantage plans could offer changed in 2019, opening up a range of new care benefits. The seven highlighted below are recent additions to help older adults age in place.

Pre-2019 care-related benefits have wide penetration, and most are growing more quickly than Medicare Advantage is overall. The top three benefits experiencing the faster growth are all new as of 2019: home-based palliative care, in-home support services, and telehealth.


Includes all plans in CMS PBP Benefits data. Plan type examples: Health Maintenance Organization (HMO), Provider-Sponsored Organization (PSO), Medicare medical Savings Account (MSA), Special Needs Plans (SNP), National Program of All Inclusive Car for the Elderly (National PACE), and employer direct PPO. Other public reports may EXCLUDE certain plan types such as SNP, PACE, employer only plans; 2. Total plan number CGAR: 14.4%; Total enrollee number CGAR: 7.9% 53%
 92% 62% 10% 19% 4%
 120% 51% -24% 6%
 6% 5% 5% 3% 2%
 2% 2% 1% Home and bathroom safety devices 
and modifications In-home support services Counseling services Telemonitoring services In-home safety assessment Post discharge in-home medication reconciliation Home-based palliative care Adult day health services Support for caregivers for enrollees 84% 18% 10%
 56%
 32% 63% 25% 15% 73% 69% 52%
 43%
 36% 15% 12% 7% Telehealth Fitness benefit Remote access technologies 
(e.g., nursing hotline) Meal benefit 
(limited time for health-related meals) Transportation Personal emergency response system Nutritional/Dietary benefit Medical nutrition therapy CGAR IN NUMBER OF OF PLANS 2018-2021 PERCENT OF ALL PLANS IN 2021 BENEFIT CGAR IN NUMBER OF OF PLANS 2018-2021 PERCENT OF ALL PLANS IN 2021 BENEFIT
Aging parents and their adult children make care spending decisions together.

Older adults are living longer and redefining aging, balancing their desire for autonomy with increased dependence on others. And they’re not doing it alone; 72% say their adult children are negotiating budgets and care decisions alongside them. Products and services in the following six categories are aimed at supporting aging Americans to have agency over how and where they live should remember the importance of marketing to their concerned kids as well.

12% EXPECTED CGAR $42.6B MARKET SIZE IN 2019 Meals, home, and personal care; home repair; delivery; transporation services DAILY ESSENTIAL ACTIVITIES
12% EXPECTED CGAR $4.2B MARKET SIZE IN 2019 CAREGIVER QUALITY OF LIFE Respite and backup care; social support; 
health and wellness
14% EXPECTED CGAR $2.3B MARKET SIZE IN 2019 CARE COORDINATION Care planning; care professional engagement; records and benefits management; 
recovery support
18% EXPECTED CGAR $4.4B MARKET SIZE IN 2019 Health vital alerts; diet and nutrition; medication management; 
personal safety monitoring HEALTH AND SAFETY AWARENESS
9% EXPECTED CGAR $4.6B MARKET SIZE IN 2019 Home retrofit services; long-term care insurance planning; care provider referral; 
legal assistance; hospice/funeral planning TRANSITION SUPPORT
31% EXPECTED CGAR $1.5B MARKET SIZE IN 2019 Digital inclusion; life enrichment and empowerment; community networking; 
life companions SOCIAL WELL-BEING
1.Market size at Year 2019 (forecast from 2017)
2.CAGR calculated based on market size at Year 2017 to forecasted market size at Year 2021

Source: AARP Caregiving Innovation Frontiers, https://doi.org/10_26419/res.00299.001

46%

value health and safety highest

Family caregivers for older adults overwhelmingly 
ranked health and safety as the primary 
factor in their aging-in-place purchases 
(just 14% ranked price highest).

13%

average (pre-COVID) annual growth

Spending on products and services supporting aging in place has grown consistently since 2017, and that’s before COVID-19!

Aging is one of the most exciting and dynamic markets in the care economy. COVID has accelerated the demand for solutions for older adults to thrive, including...
Mobility and fitness
Physical and cognitive tech for older adults
Community
Co-living and technology to enable connection with friends and family
HOME-TECH
Home healthcare, remote monitoring, and connected home devices to support older adults aging safely and healthily in their own homes
END-OF-LIFE
Understanding, managing, and planning for end-of-life
Fintech
Managing and coordinating finances for older adults