“We expect 300,000 Americans will purchase a new traditional long term care insurance policy or a combo product in 2015,” predicts Jesse Slome, executive director of the American Association for Long-Term Care Insurance (AALTCI).  “The maximum potential benefit value for just 2015 new sales will equate to about $5 billion in future benefit payments for home care services.”

Some eight million Americans currently possess some form of long-term care (LTC) benefit and while sales of traditional LTC insurance products have declined in recent years, Slome notes that sales of life insurance and annuity policies that offer long-term care benefits are increasing.  “For the first time, we project annual sales of the newer options will equal and quite possibly surpass sales of traditional long-term care insurance policies.”

The Association estimates the total maximum potential benefit value to all current holders of long-term care insurance policies will approach $2 Trillion (2014 dollars).   The nation’s insurers paid out $7.5 Billion in benefits in 2013 according to an AALTCI report.  “By 2032, insurers expect to pay out in excess of $34 billion as today’s 60-year old policyholder reach their 80s,” Slome notes.

Home health care providers and agencies will be among the leading beneficiaries according to AALTCI analysis.  “Of the billions paid out each year, nearly 30 percent currently pays for home care services,” Slome notes.  “That percentage will grow significantly in the years ahead.”  The most recent Association analysis found that 51 percent of all newly opened claims in 2013 paid for home care services.

“The number of Americans requiring help with daily living at home is expected to more than double from the current 12 million to 27 million by 2050,” explains Margaret Haynes, Chief Operating Officer of Right at Home an international franchise organization.

“People want to remain in their own home when care is needed,” Slome adds.   “As millions of Americans live into their 70s, 80s and beyond, long term care insurance policies will enable millions to receive the care they need in the setting they prefer.”

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“Americans mistakenly associate long term care with nursing home care and that’s clearly something that needs to be addressed, declares Jesse Slome, executive director of the Association, a national trade group focused on creating heightened awareness.   ”The majority of long term care today takes place outside of a nursing home environment.”

To make consumers aware of the growing importance of assisted living the Association is seeking an organization interested in creating heightened awareness.  “We have hundreds of thousands of consumers visiting the Association’s website each year and that alone provides us with an incredible opportunity to educate.”

The Association just published its mid-year report.  “Our focus on home care and the role of long term care insurance in paying for home care services has generated increased traffic to the Association’s website and exposure for the two supporting home care organizations that support our efforts,” Slome shared.   “A partner will enable us to create the same level of understanding of the many benefits of assisted living community residency for those who are aging and may or may not have a need for long term care.”

The American Association for Long Term Care Insurance is a national organization that advocates for sound and responsible planning for the real risk of needing long term care services.  The national organization is headquartered in Los Angeles, CA.  To connect or learn more about long term care insurance costs call the organization at 818-597-3227.

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“Last year the nation’s long term care insurance companies paid $6.6 billion in claim benefits to over 200,000 individuals,” reports Jesse Slome, executive director of the Los Angeles-based organization.  According to the Association’s report, the amount of claim benefits paid increased eight percent compared to the prior year.

The Association reports that women accounted for nearly two-thirds (65%) of new claims opened during 2011.   About one in four (24.1%) of new claims commence between ages 70 and 79 while 65.5 percent start after the policyholder reached age 80.  “One in 10 claims start when policyholders are in their 50s or 60s,” Slome acknowledged, “often the result of an accident or illness.”

“The widespread question asked by individuals considering long-term care insurance is will I ever use it,” Slome admits.  “The best we can do is gather information on how people use their benefits.”

According to Association, Alzheimer’s disease was the leading cause for claims in a nursing home or assisted living community while cancer was the top cause for claims that begin at home.

Half of all new individual long term care insurance claims pay for home care services the Association’s research found.   New claims by women receiving care at home accounted for 32 percent of new claims with 18 percent of men receiving benefits for home care.  “Less than one-third (31%) of new claims begin with the policyholder receiving care in a nursing home,” Slome adds.

The Association study revealed that the largest claim still being paid at the end of 2011 had reached $1.7 million.  “There are a number of claims still being paid that have exceeded $1-million,” Slome notes.  “In this particular case, the claimant is a woman who purchased coverage and began receiving care three years later.”   She has been receiving care for nearly 15 years.

The complete findings of the Association’s research are contained in the just-published 2012 Long-Term Care Insurance Sourcebook.    Copies will be mailed at the end of July to all members of the Association.  For additional information, call the Association at 818-597-3227.

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That compares to only 1.5 million in nursing homes and 1.1 million who reside in assisted-living communities according to the American Association for Long-Term Care Insurance which teamed up with Homewatch CareGivers to conduct a study examining trends in long-term health care and the utilization of associated support services. 

“Most people incorrectly associate long-term health care with skilled nursing care in a facility when the vast majority of care takes place at home,” explains Jesse Slome, Executive Director of the American Association for Long-Term Care Insurance.  “It is clear that the people in today’s society prefer treatment for chronic conditions and issues related to aging in their own home rather than in a residential facility.” 

One aspect of the study sought to compare individuals with long-term care insurance policies with those without insurance coverage.   The findings indicated that individuals with long-term care insurance receive significantly more home care, and thus can stay in their homes longer.    The study found that 70.6% of those covered by long-term care insurance received an average of between five and seven days of care each week, while only 35.1% of those without insurance received similar care as often. 

“When possible, home is almost always the preferred setting for people who require care,” says Leann Reynolds, president of Homewatch CareGivers. “This has been a clear and growing trend for more than a decade, as more and better home services have become available.  The vast majority of people want to receive support care in their homes in order to maintain independence and quality of life for as long as possible.” 

Possessing insurance to pay part or all of the cost of home care services enabled individuals to receive care at home for longer periods of time. The study found that 41.2% of those with insurance received care for longer than one year; compared to 29.7% of those without coverage. 

“The study confirms what we’ve long suspected, that a basic long-term care insurance plan costing less than $1,000 a year may provide sufficient coverage for those who want care at home and still have the ability to transition to more costly skilled facilities should the need arise,” adds Slome. 

According to the Urban Institute, a nonprofit founded in 1968 that conducts research on social and economic issues to foster sound public policy, 21.3 percent of the frail older population receives paid home care services and it projects this will increase to 22.3 percent by 2030 and 25.5% by 2040. 

“It is vitally important for individuals to recognize the increased likelihood of needing care at some point in their lives, and to plan for that inevitability,” concludes Reynolds. “Having sufficient financial resources or the protection of long-term care insurance are the prime factors for all of us who want to stay in our homes and receive care for as long as possible.” 

Founded in 1980, Homewatch CareGivers <a href> http://www.homewatchcaregivers.com/                    </a> is the largest, most experienced international provider of full-service home care for people of all ages, including seniors, children, veterans, the chronically ill, and those recovering from medical procedures.  In-home care services are personalized for each client and customized care plans are administered through an international network of 111 owners with 181 territories.  Founded in 1998, the American Association for Long-Term Care Insurance <a href> http://www.aaltci.org </a> is the national trade organization established to educate Americans about the importance of long-term care planning.   For more information visit the organization’s Consumer Information Center or to access a free guide to reducing the cost of long-term care insurance click on this link: <a href>   www.aaltci.org/free-guide/ </a>.

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