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From 1982 to 2004/2005 the percentage of Medicare enrollees age 65 and older who lived in long-term care institutions such as nursing homes dropped dramatically from 7.5 percent to 4.0 percent. The emergence of assisted-living options, changes in Medicare reimbursement policies and improved rehabilitation services may have fueled this decrease in institutionalization.National Institute on Aging.

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Related links:
AARP,
Medicare,
U.S. Department on Aging,
US Senate Special Committee on Aging,
WSJ's Health Blog

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