New Report on The Role of Long-Term Care Insurance

Private insurance currently plays a small, but potentially important role in financing the long-term care of the elderly in the United States, and some believe it can be a significant element in a restructured long-term care financing system, according to a new report. The report, from the Center for Retirement Research at Boston College, examined the long-term care insurance industry and found major benefits but also major problems.

According to the report, the benefits of long-term care insurance include a greater choice of care settings and providers than under Medicaid and the potential to reduce Medicaid spending by states. However, despite the benefits, sales of long-term care policies have not been increasing in recent years.

The report identified several reasons for people’s reluctance to purchase long-term care insurance. One reason could be that long-term care insurance is perceived by many to be expensive. The average premium for a 65-year-old is $2,000 a year, though premiums for younger adults are much more affordable; as many as 76 percent of those aged 35-59 could afford coverage according to the report. Another reason policies aren’t more popular is the confusion over what Medicare covers. Many people incorrectly believe that Medicare will cover long-term care in a nursing home.

The report talks about the fact that the government is attempting to develop the market for long-term care insurance through the Long-Term Care Partnership Program, which I reported on in a recent  newsletter .  

To read the full report, click here .

For more information on long-term care insurance, click here.

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About Evan H Farr, CELA, CAP

Evan H. Farr is a 4-time Best-Selling author in the field of Elder Law and Estate Planning. In addition to being one of approximately 500 Certified Elder Law Attorneys in the Country, Evan is one of approximately 100 members of the Council of Advanced Practitioners of the National Academy of Elder Law Attorneys and is a Charter Member of the Academy of Special Needs Planners.