A report proving how and why long-term care insurance (LTCi) helps all of us and our country was just published. LifePlans conducted the study over a period of twelve years. It was commissioned by America’s Health Insurance Plans (AHIP).
The report shows that that for LTCi policyholders:
- A typical 60-year old LTCi policyholder would pay $188/month in premium for the same amount of care they would otherwise have to save $1,666/month, for 22 years, for.
- Roughly 22 years of premium payments would be returned after only five months of collecting from the average LTCi policy.
- The majority (97.6%) of all LTCi claims get paid. My experience has been that the only reasons LTCi claims are not paid are due to incomplete claim paperwork or no true need.
- Most LTCi claimants agree that LTCi enhances access and flexibility as they seek to obtain to the services of their choice.
- LTCi owners receive on average 35% more hours of care than those without, and their care is also more likely to address their needs.
- The LTCi industry currently serves 7.4 million policyholders and is expected to pay out roughly $700 billion in claims over the life of those policies.
For Family Caregivers, the report shows:
- Individuals caring for family members with LTCi are nearly twice as likely to be able to continue working as when there is no LTCi.
- Caregivers of LTCi claimants experience less stress finding appropriate services for their loved ones.
- LTCi enables family members to spend less time on hands-on care and more on social interaction and companionship, which leads to better experiences and less stress.
Why the report proves that LTCi is good for America:
- Because LTCi covers a majority of LTC costs, insureds are not forced to depend on Medicaid.
- Between 21 and 31% of insured nursing home residents would spend down to qualify for Medicaid if they did not own LTCi. Fewer than 5 percent of LTCi policyholders spend down to Medicaid.
- Today’s 7.4 million current LTCi policyholders are expected to save the Medicaid program about $50 billion over their lifetimes. Annualized Medicaid savings per in-force policy are about $334.
The graphics in the report are great. They are straightforward and easy to understand, as is the report itself. If you would like to receive a copy of the entire report, email me at email@example.com.