2024 Long-Term Care Insurance Claims Data

A just-published report from the Connecticut Partnership for Long-Term Care Insurance can provide some valuable insights explains Jesse Slome, director of the American Association for Long-Term Care Insurance.

“Thankfully Connecticut remains the only state that publishes current and highly relevant data regarding long-term care insurance,” declares Jesse Slome, AALTCI director. “Information is essential to educating people about the value of this protection and reasons to consider it as part of their longevity planning. And 2024 long term care insurance claims data is unbelievably helpful to those marketing this valuable protection.”

According to Slome, the data looked at some 37,201 policies in force. “For me, the key data I look for is claimant data,” Slome explains. “People want to know if owning long-term care insurance pays. By pays, they mean, do insurers pay benefits, at what ages and how much?”

“Of the 6,878 total claimants, 60 percent represented care by a home health aide or a home visit by skilled nursing,” Slome points out. “Only 34 percent of claims were for nursing home and 29 percent for assisted living. I like to share with reporters and consumers that this is really nursing home avoidance protection and the numbers validate that.”

2024 Claims Data

Number of Policyholders who have qualified to receive benefit payments: 6,878

Gender of Claimant:  59% Female – 41 % Male

Marital Status:  51% Married – 41% Not Married – 8% Unknown

Average Age at Policy Purchase:  64

Age at Time of Claim:  Mean: 81     (Range 31  to 103)

Amount Paid To Date: Least ($19) – Most ($2,647,545)

Type of Service (top categories only)
Home Health Aide – 53%
Nursing Home – 27%
Assisted Living Facility – 29%
Skilled Nursing (Home Visit) 7%

Data from CT Partnership for Long-Term Care statistical report published September 16, 2024.

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Costs for traditional long-term care insurance coverage are level compared to the prior year according to the 2024 Long-Term Care Insurance Price Index released today by the American Association for Long-Term Care Insurance.

“In some cases, prices decreased a little compared to the prior year,” states Jesse Slome, directory of the national organization that advocates for the importance of long-term care planning. “The declines were minimal and there were a few instances where costs rose but again the increases were nominal.”

According to the organization’s 2024 Price Index report, a couple, both age 55, who each obtain long-term care protection valued at $800,000 (total) for their needs at age 85 can expect to pay around $5,000 annually.

“This couple could pay as little as $2,080 combined if they opted for policies that did not include any future growth of benefits,” Slome acknowledges.  “Adding a 3 percent annual inflation growth factor increases their cost to $5,025-per-year. Selecting coverage that will grow at 5 percent annually increases their cost to almost $8,600 annually.”

While prices for traditional long-term care insurance offerings remained relatively level, the same was not true for linked benefit policies.

“Costs for linked benefit products are substantially lower compared to a year ago” reports the long-term care insurance expert.  “The linked-benefit market is more competitive and life insurers clearly are looking to capture more premium. Rising interest rates provided them with an opportunity to offer reduced premium costs,” Slome explains.

According to the 2024 Long-Term Care Insurance Price Index, a single 55-year-old male purchasing a life plus LTC policy providing around $520,000 of potential long-term care benefits at age 90 could expect to pay $5,022 in annual premiums. The Association’s 2023 Price Index reported that same coverage would have cost $5,600. Access the 2023 LTC Price Index at https://www.aaltci.org/long-term-care-insurance/learning-center/ltcfacts-2023.php.

The American Association for Long-Term Care Insurance ( https://www.aaltci.org ) advocates for the importance of planning and supports insurance professionals who market both traditional and hybrid LTC solutions. To learn more or to connect long-term care insurance specialists visit the organization’s website or call 818-597-3227.

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Click to access 2024 Long term care insurance statistics

The annual Long-Term Care Insurance Price Index was pre-released today by the American Association for Long-Term Care Insurance.

“People have many misconceptions about long-term care insurance and we post data to help them better understand what can be a confusing topic,” states Jesse Slome, director of the long-term care insurance organization.

The 2024 Long-Term Care Insurance Price Index is the organization’s annual compilation of costs for both traditional and linked benefit long-term care insurance.

“First, prices for traditional long-term care insurance can vary significantly depending on which insurance company you select,” Slome points out. “You generally only buy this protection once so selecting the right insurer is of upmost importance.”

The long-term care insurance expert pointed out that the vast majority of long-term care coverage purchased in 2023 consisted of linked-benefit policies. “Consumers like the ‘don’t use it – don’t lose it’ aspect of a life plus LTC policy,” Slome agrees. “But it’s not like this comes without a cost.” The 2024 Price Index attempts to compare premium costs for virtually equal coverage under both options.

The 2024 Long-Term Care Insurance Price Index along with other statistics and data can be accessed via the Association’s website at https://www.aaltci.org/long-term-care-insurance/learning-center/ltcfacts-2024.php.

The American Association for Long-Term Care Insurance (AALTCI) advocates for the importance of planning and supports insurance professionals who market both traditional and hybrid LTC solutions. Jesse Slome is recognized as a leading long-term care insurance expert at https://www.aaltci.org/for_media/.

To learn more or to connect with long-term care insurance specialists visit the organization’s website or call 818-597-3227.

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“Total national expenditures are predicted to grow to $266.2 billion by 2028,” states Jesse Slome, director of the American Association for Long-Term Care Insurance.  ”That is a 58 percent increase from the latest actual reported expenditure of $168.5 billion for 2018.”

The report predicts the national growth of expenditures for nursing care facilities as well as Continuing Care Retirement Communities.  “Total expenditures are expected to reach $210.7 billion in 2023,” Slome shared.  “The concerning aspect is that out-of-pocket expenses are expected to grow from $44.8 billion (2018) to $52.7 billion in 2023.  By 2028, out-of-pocket expenses that will be imposed on families is projected to reach $59.4 billion.”

Nursing Home Care Expenditures Data

Increased costs will account for some of the increase Slome acknowledges.  “So will the increase in the number of aging Americans who will need care,” he adds.  “The reality is that people age and need care.  When they do, someone will be facing bills.”

The Association director shared that the percentage of costs expected to be paid by Medicaid will grow.  “Nearly $50 billion was paid by Medicaid in 2018,” Slome shared.  “The projection for 2028 is that the cost will rise to $73 billion, a 59.1 percent increase.  Is this financially feasible, only time will tell.”

Slome suggested that insurance agents drip continuing information to their clients starting around age 50.  “Educating consumers is paramount to the process of creating awareness of the risk and need,” Slome advised.  “Government reports of projected out-of-pocket risks that will face individuals comes with added trust factors and can be a most valuable tool to use.”

Access Latest Long-Term Care Insurance Statistics 

The American Association for Long-Term Care Insurance (AALTCI) advocates for the importance of long-term care planning and supports insurance professionals who market both traditional and hybrid LTC solutions.  To access the latest data regarding long-term care need and insurance, visit the Association’s Data Center at www/aaltci.org/LTCFacts-2022/.

To obtain long-term care insurance costs from a long-term care insurance specialist call the organization at 818-597-3227 or visit their website www.aaltci.org.

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January 21, 2022 – An analysis of over 5,000 long-term care insurance found that 80 was the mean age at time of claim according to the American Association for Long-Term Care Insurance.

“People understand why they may need long-term care insurance,” states Jesse Slome, director of the American Association for Long-Term Care Insurance.  ”What they often ask is whether people actually benefit from owning this protection.  For that reason, we strive to share the most relevant and latest data regarding long-term care insurance claims.”

Slome shared new claims information with insurance professionals marketing long-term care insurance protection.  “The data reveals helpful information you’ll want to share with individuals considering long-term care insurance,” Slome advised.

Access Claims-Paid Data and Latest LTCi Statistics

According to Slome, the analysis reported data on 5,439 policyholders studied by the Connecticut Partnership for Long-Term Care.  “Over half (59%) of the claims were women and 41 percent of all claimants were not married at the time.  That’s important because many people are married when they start planning but should understand they may not have a spouse to provide care at older ages.”

Click here to access 2022 long-term care insurance statistics.

Among the data shared by the long-term care insurance expert was the amounts paid to date per-claimant.  “The mean was $142,043 but the largest claim was $1.9 million,” Slome shared.  “Those very large claims are definitely a risk but our analysis of years of long-term care insurance statistics validate my position that some amount of protection is always better than having none.”

The American Association for Long-Term Care Insurance (AALTCI) advocates for the importance of planning and supports insurance professionals who market both traditional and hybrid LTC solutions.

To access the latest long-term care insurance claims statistics and other data visit the organization’s website at www.aaltci.org/LTCFacts-2022/.   To obtain long-term care quotes from a long-term care insurance specialist call the organization at 818-597-3227 or visit their website www.aaltci.org.

Slome is also head of the American Association for Medicare Supplement Insurance.  AAMSI supports insurance professionals who market Medicare Advantage and Medicare Supplement insurance products.  Access Medicare insurance statistics via the organization’s website.

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“The costs for virtually identical coverage can be significant,” states Jesse Slome, director of the long-term care insurance organization.  The organization just released pricing for 65-year olds examining costs for single men, single women and couples where both parties obtain the coverage.

“A 65-year old couple can pay 46 percent more based on which company they select,” Slome notes.  “The spread between the lowest priced and highest priced policy compared by the organization was as high as 84 percent for a 65-year-old woman.”

The organization analysis reported expected costs for various policy options.  “This year we especially looked at the inflation growth option which can literally double or even triple the base cost of this insurance policy,” Slome explains.  The organization provides real examples of policies with various levels of future benefit growth.

Access 2021 Long-Term Care Insurance Price Index

According to Slome, traditional long-term care insurance policies offer consumers the option of increasing the value of their protection.   ”Years ago, many selected the option that increased their benefits by five percent yearly,” the long-term care insurance expert notes.  “More recently consumers started to favor the three percent formula.  However, this too can be costly in today’s historic low interest rate climate.”

The 2021 Long-Term Care Insurance Price Index reports that a 65-year-old couple each purchasing an initial benefit of $165,000 could expect to pay $3,750 combined for their insurance policies.

“If the couple chooses to add a three percent benefit increase option, their yearly cost more than doubles,” Slome reports.  The 2021 pricing report found that coverage with the three percent benefit increase option would cost $7,150 annually.  Selecting the five percent option would cost the couple $9,675 combined per-year.

Considering various future inflation growth options can benefit consumers suggests AALTCI.  “Working with a knowledgeable long-term care insurance specialist can be highly beneficial in terms of knowledge and savings potential,” suggests Slome.  To view 2021 long-term care insurance prices and statistics and data visit the organization’s website.

Headquartered in Los Angeles, the American Association for Long-Term Care Insurance (AALTCI) advocates for the importance of planning and supports insurance professionals who market both traditional and hybrid LTC solutions.   Request long-term care insurance costs by calling the organization at 818-597-3227 or visit their website at www.aaltci.org.

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“While Medicare and Medicaid continue to pay the majority of nursing home costs, individuals and families are shelling out more than ever,” explains Jesse Slome, director of the long-term care insurance organization.  “The amount of out-of-pocket costs reached $45.6 Billion in 2019, and increase of $5.6 Billion compared to outlays in 2015.”

The Association director was sharing the latest information for nursing care facilities and continuing care retirement communities.   ”Nursing home out-of-pocket expenditures grew by 4.0 percent in 2019 compared to the prior year,” he adds.

“In 2000, some $26.9 Billion was paid out-of-pocket and in 2010 the amount reported was $37.1 Billion,” Slome shared.  “While people today are opting for care at home, nursing homes still are still utilized when long-term care services are required.”

AALTCI added a compilation of relevant information regarding long-term care need to the organization’s website.  “Consumers want a resource with current data where they can access the information they need to make prudent financial decisions,” Slome explains.   The new webpage can be accessed at www.aaltci.org/ltcneed.

The American Association for Long-Term Care Insurance (AALTCI) advocates for the importance of planning and supports insurance professionals who market both traditional and hybrid LTC solutions.   Request long-term care insurance quotes call the organization at 818-597-3227 or visit their website at www.aaltci.org.

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“As millions of Americans age and require support services, they prefer to receive care in their own home,” explains Jesse Slome, director of the long-term care insurance organization.  “As a result, expenditures for home care services reached a new high in 2019.”

The Association director was sharing the latest information with specialists who market long-term care insurance protection.   ”Home care expenditures grew by 7.7 percent in 2019 compared to the prior year,” he adds.  According to Slome while a significant portion of home care services are paid for by Medicare and Medicaid, the poverty program, individual out-of-pocket costs can impact an individual and their family.

“In 2019 $5.9 Billion of home care expenditures were classified as out-of-pocket meaning the recipient or their family had to pay the cost,” Slome shared.  “In 2018, some $11.4 Billion was paid out-of-pocket and in 2017 the amount reported was $12.7 Billion.”

The Association recently added a new updated compilation of information regarding long-term care need to the organization’s website.  “Our goal is providing an easy to use resource of current data where consumers can find the information they need to make smart financial decisions,” he explains.   Information can be accessed at www.aaltci.org/ltcneed.

The American Association for Long-Term Care Insurance (AALTCI) advocates for the importance of planning and supports insurance professionals who market both traditional and hybrid LTC solutions. Request long-term care insurance quotes call the organization at 818-597-3227 or visit their website at www.aaltci.org.

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“Unlike other insurance where you might have a claim almost immediately, there needs to be a long period of time before a claim is expected to occur,” explains Jesse Slome, director of the American Association for Long-Term Care Insurance (AALTCI).  “You may pay $2,000 a year with the anticipation of receiving $200,000 in ultimate benefits and that isn’t possible if people were all immediately claiming on their policies.”

Slome was sharing the most recent data shared by the Connecticut Partnership for Long-Term Care.  Connecticut, one of four original Partnership states has been gathering and reporting data consistently since the mid 1990s.

“You typically buy a long-term care insurance policy between the ages of 55 and 65, which means you are most likely to need the benefits and receive car in your 80s,” Slome explains.  “If you pay that $2,000 a year for 15 years, you have paid in $30,000.  For those who have significant claims, it’s an incredible value.  For those who never need long-term care, I don’t think they are disappointed that they avoided a lengthy stay in a nursing home or being dependent on having caregivers in their own home.”

The long-term care insurance expert was sharing data with insurance professionals who market various long-term care insurance policies.  “According to the latest Connecticut the amount paid to claimants ranged from $19 to $1.5 million,” Slome acknowledged.  The mean amount paid to claimants was $127,628.

Slome advised increased education among consumers making more people aware of how long-term care insurance works, when one needs to apply for coverage and how people benefit from the protection.

To obtain long term care insurance quotes from a professional with expertise specifically in long term care insurance products offered by multiple leading companies call the national organization at (818) 597-3227 or visit the Association’s website at www.aaltci.org.

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“Individuals who want long-term care insurance protection must health qualify and our health generally gets worse as we get older,” explains Jesse Slome, AALTCI’s director.   The Association has released the final findings of its study of decline rates for those applying for a traditional long-term care insurance policy.

According to the Association, some 51 percent of those who submitted an application and were age 75 or older were declined for the coverage.   “This is something you clearly have to do well before turning 75,” Slome advises.  “Our advice is to look into this coverage between the ages of 55 and 65.  Once people get onto Medicare, they often take advantage of all the health screens that Medicare pays for and while those are great, they can uncover health issues that can prevent you from qualifying for long-term care insurance.”

Only 16 percent of applicants whop were age 49 or younger were declined by insurers sharing data.  The percentage increased with each age band the Association reported.

Nearly a quarter (24 percent) of individuals applying between ages 60 and 64 were declined for coverage.  The percentage increased to 32.5 percent for ages 65 to 69.

Decline rates increased slightly from the last time the Association compiled data in 2014.  ”There little attention paid to educating consumers about the age to start investigating long-term care insurance as an option to cover potential risk of needing care at home or in a skilled nursing facility,” Slome admonished.

“You can’t start saving for retirement at age 60 and hope to have enough money put aside,” Slome noted.  “With long-term care insurance, it is your health that’s most important and clearly, the younger you are, the better your health is likely to be.  Waiting could be a very costly mistake.”

The Association makes available the latest data on long-term care insurance on the Association’s website.  Go to https://www.aaltci.org/long-term-care-insurance/learning-center/ltcfacts-2019.php to see studies from 2019.

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