Previously, on Long Term Care Insurance Myths…
We have seen multiple examples of the press misrepresenting the current state of the Long Term Care insurance (LTCi) industry. In my last blog post (you can read it here), I called out a specific article in the Wall Street Journal (Jan 2018) that predicted the imminent downfall of the industry. They cited financial instability and unexpected rate hikes as the central culprits.
Multiple experts from the LTCi industry penned their objections, offering well-sourced facts. Like me, they were compelled to present a number of articles in response. The status of long term care insurance is not only financially stable, but also more popular than ever.
More Answers to Long Term Care Insurance Myths
This blog focuses on the response from my colleague, Steve Moses, President of the Center for Long Term Care Reform. Moses is a noted expert on both state and national levels.
In a letter addressed to the author of the WSJ article, Moses highlighted the glaring omission from the article: the dominant role that Medicaid plays in the long term care solution*. He reminds the author that government policy is central in determining the financial stability of long term care.
He concludes: “It is a tragedy to blame private insurers and the dedicated people who’ve tried to make the LTC insurance product work for problems caused by poor public policy. Blame the culprits, not the victims.”
As we’ve recently discussed, people who own long term care insurance (LTCi) have necessary funds and are far more likely to be able to avoid Medicaid, stay at home, or access quality assisted living if they need long term care.
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*In his monograph, “How to Fix Long Term Care Financing” (July 2017), Moses explains:
“Medicaid is not just a factor in long-term care financing; it is the critical factor. Since its founding in 1965, Medicaid has evolved from a minor funding source to the primary funder of formal paid care.”