This Insight on the Issues discusses the availability of assisted living and residential care, which represent a critical component of the long-term services and supports (LTSS) system for older adults who cannot live alone, but do not require the skilled care provided by nursing homes. In 2010, states reported a total of 51,367 licensed residential care settings with a total capacity of 1,233,690 beds—a dramatic increase from an estimated 1,046,631 beds in 2007. (July 2012)