“More than 201,000 residents and staff of long-term care facilities died from Covid, about 23 percent of all deaths which is a staggering number,” declares Jesse Slome, director of the American Association for Long-Term Care Insurance.  ”People never wanted to go to nursing homes and Covid is only making people more aware that this is not a desirable option.”

“When care is needed, people want to remain in their own home, something the long-term care insurance industry has known for decades,” Slome admits.  “But everything associated with the product category focuses on skilled care with home care listed as a secondary benefit that is included.  Try selling that something people don’t want and, oh yes, charging a whole lot of money for it.”

Nursing Home Avoidance Protection

Instead, the long-term care insurance expert has advocated positioning long-term care insurance as ‘nursing home avoidance protection.’  “You buy this coverage for the very simple reason that you do not want to go into a nursing home,” he states.  “In fact, I wish State regulators would allow individuals to buy home care insurance protection with minimal benefits for skilled care, similar to what some short-term care policies permit.”

Slome points to the failed Washington Cares program as an example.  “While there were flaws in the effort, the State clearly understood the desire and need for a benefit that paid for home care,” Slome explains.  “Long-term care facilities do everything they can to safely serve individuals and I am confident will continue to do so.”

“If long-term care insurance is to ever become a viable option for more than a very small percentage of individuals, things need to change,” Slome advocates.  “Part of that change I believe needs to be a re-branding of the category and Covid certainly provides a great opportunity to do that.”

Covid Deaths Data

The data comes from a just-published study from the Kaiser Family Foundation.  According to the report, residents and staff of long-term care facilities accounted for 201,000 Covid deaths.  That amounted to about 23 percent of all deaths (680,000).  The report acknowledged the number could be even higher due to under-reporting.  At the inception of the pandemic, nearly half of all deaths occurred in long-term care facilities.

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 long-term care insurance statistics regarding 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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“Just over 76 percent of new buyers of a long-term care insurance policy do so after turning age 50 and before they turn 70,” AALTCI’s director shared with insurance professionals who market the protection.  “It is important to understand the marketplace in order to know how to effectively communicate with prospective buyers.”

Slome shared that most buyers today are between ages 55 and 59 (24.7%) or between 60 and 64 (23.2%).  “The sweet spot for buying traditional health-based long-term care insurance is between 55 and 65, before you go onto Medicare,” Slome noted.

“Once on Medicare, many individuals take advantage of the excellent health preventative tests ad covered doctors visits, which is a good thing because these exams often detect problems that can be addressed,” Slome explained.  “But, the exams also can uncover conditions that may make it impossible for an individual to health qualify for long-term care insurance.  That’s why we urge action prior to reaching Medicare age.”

Slome urged planning for long-term care begin prior to age 65.  “There are many reasons to plan prior to turning age 65,” Slome explained.  “If you want long-term care insurance to be an option, meeting the insurer’s health qualifications is more difficult after 65 and, of course, insurance is less expensive if you lock in coverage at younger ages.”

Data on long-term care insurance sales by issue age as well as the most recent data on benefit period selected was posted on the Association’s website and can be accessed at https://www.aaltci.org/long-term-care-insurance/learning-center/ltcfacts-2019.php

The American Association for Long-Term Care Insurance advocates for the importance of long-term care planning.   Established in 1998, the organization connects consumers with knowledgeable professionals who are independent advisors for no-cost, no-obligation long-term care insurance costs quotes and policy comparisons.

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See more long-term care insurance facts and statistics here.

Millions of Americans have benefited from owning a long-term care insurance policy that pays for care at home or in a skilled facility people to do just that,” explains Jesse Slome, director of AALTCI that gathered data from seven leading long-term care insurance companies.    ”Some claims last many years and have paid out over $2 million, others may last for just a few days, weeks or months.  But ultimately all claims come to an end and it’s helpful to consumers to understand the reasons that claims end.”

According to the national LTC Association’s analysis of long-term care insurance claims that ended in 2018 some 72.5 percent of claims ended due to the death of the policyholder who was receiving claim benefits.  Some 14 percent ended because the person recovered and no longer needed qualifying care and 13.5 percent ended because the policyholder exhausted their policy benefits.

“Most of the traditional long-term care insurance policies purchased today will provide a contractually based amount,” Slome explains.  “The person’s benefit pool of available claim dollars could be maxed at $200,000, $500,000 which all depends on the policy provisions they selected and pay for.  It’s important to note that only a small percentage of policyholders exhaust or run out of insurance benefits.”

Slome believes that is an important factor for consumers to know because while more insurance coverage is always better, he explains the more coverage you buy, the more you will likely pay in monthly or yearly premiums.  “I advocate consumers consider a Good-Better-Best approach to comparing long-term care insurance because affordability is always an important factor,” Slome says.  “Some coverage is always better than no coverage and as the data shows, for many will be sufficient benefits for the care they need.”

Just over 300,000 individuals received benefits in 2018 from owning a long-term care insurance policy according to AALTCI claims data reported earlier in the year.  “The industry paid out over $10 billion in 2018 and this increases each year as more people need assistance,” Slome adds.   The LTC expert notes that it’s best to apply for insurance coverage before you qualify for Medicare at age 65.

The American Association for Long-Term Care Insurance advocates for the importance of long-term care planning.  The organization connects consumers with knowledgeable professionals who are independent advisors.   Consumers seeking long-term care insurance cost comparisons should visit the Association’s website at www.aaltci.org or can call the organization’s national headquarters at 818-597-3227.

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Jesse Slome, leading long term care insurance expert, director AALTCI

Nearly a quarter of Americans age 85 and older now live in a multi-generational household and could benefit from smarter planning suggests the director of the American Association for Long-Term Care Insurance (AALTCI), a national trade organization.

“The number of older Americans living together with younger family members continues to climb,” declared Jesse Slome, AALTCI’s director.   Slome points to recent data that reported the in 2006 only 20 percent of those 85 and older lived in a multi-generational setting.

“Several factors account for the growing trend including inadequate retirement savings and the need and cost for long-term care services,” Slome notes.  A Pew research study found that as many as 40 percent of nonwhite and 42 percent of Asian-Americans lived in shared households.

“I would expect the trend to continue with more Americans living with and caring for their aging parents,” Slome predicted.  “For many of these individuals and families, a different means of approaching long-term care planning could be extremely beneficial.”

Slome suggested millions of Americans would benefit from a form of long-term care planning that included smaller and shorter long-term care insurance policies and where they are available short-term care insurance policies.  The latter offer benefits because some policies can be obtained at older ages, well into the applicant’s 80s.

“A long-term care insurance policy that provides more modest benefits will cost around $100 a month which is the maximum many people can or will spend,” Slome pointed out.  “But it could enable some level of professional care in the home that allows the adult child to maintain their job or just some have some respite from the job of care giving.”

Short-term care insurance policies are available in a growing number of states a trend Slome believes is beneficial for millions of families as well as taxpayers.  “If we want to avoid a significant increase in the number of individuals turning to government programs funded by taxpayers, we need to find affordable solutions, and short-term care insurance is an option we hope more states accept,” he added.

“Throwing the burden onto families and communities and kicking the can down the road are not viable solutions,” Slome explained.   The national long-term care insurance planning advocate noted that it was the responsibility of those with a stake in the game to take action.   He noted that long-term care insurance, which provides protection to roughly eight million Americans was a small but important piece of the puzzle.

To learn more about long-term care insurance planning options call the American Association for Long-Term Care Insurance at 818-597-3227 or visit the organization’s website at www.aaltci.org to find LTC insurance professionals.   To learn more about short-term care insurance visit the National Advisory Center for Short-Term Care Information.

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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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“The population of seniors age 85 and older is projected to more than quadruple between now and 2050,” explains Jesse Slome, executive director of the American Association for Long Term Care Insurance, a national trade group based in Los Angeles, CA.  “Financing long term care in Virginia will become a huge problem and kicking the can down the road is fraught with enormous risk.”

The Association director praised a new report researched and written by Stephen Moses, president of the Center For Long-Term Care Reform and presented by the Thomas Jefferson Institute.  “This is a very well prepared look at the current environment that draws some very dire conclusions if we continue to hide our heads in the sand,” Slome explains.  “Kudos to Moses and the Center for another excellent look at the problem in an extremely fair and balanced way.”

“The cost for long term care paid by taxpayers through Medicaid programs are already straining budgets,” Slome notes.  “Medicaid consumes almost 17 percent of Virginia’s general fund expenditures, exceeding elementary and secondary education (15.8%).   And, it’s only going to get worse if nothing changes.”

The report outlines a number of recommendations designed to protect both the current welfare system for the state’s neediest as well as viable options that can assure individuals receive long term care services.  “Long term care insurance is definitely one of the options for those who can health qualify and can afford premiums,” Slome notes.  “Without it, you might just find yourself at the whim of whatever government programs may exist in the future or dependent on your family members to provide care.”

For additional information or for no obligation long term care insurance costs call the organization at (818) 597-3227 or visit their website at www.aaltci.org.

The full report can be accessed online at http://www.thomasjeffersoninst.org/files/3/LongTermCare.pdf

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“Consumers don’t realize that to keep prices as low as possible for all policyholders, insurers take the time to examine health records, conduct face-to-face assessments and all that is costly,” explains Jesse Slome, executive director of the American Association for Long Term Care Insurance.  “When the Federal government attempted to launch a plan with minimal to no health requirements, their own actuaries set premiums so high that they abandoned the program acknowledging that costs were higher than what almost anyone would pay.”

Slome noted that the Association undertook an informal study of costs related to long term care insurance applicants following a discussion with a reporter.  “Like so many consumers we speak to, this individual was surprised to learn how many individuals who apply for long term care insurance are declined due to health reasons,” Slome noted.  “We wanted to substantiate the fact that this cost insurers hundreds of millions of dollars each year.”

According to the Association’s annual research into buyers and claimants, some 25 percent of applicants between the ages of 60 and 69 are declined by insurers after they apply.   The rate is significantly lower at earlier ages.

“Each insurer has its own health underwriting practice that can include extensive review of the applicant’s medical records as well as a face-to-face interview,” Slome explains.  “The goal is not to decline people but just one additional unhealthy person within a pool of 100 insureds could necessitate a significant price increase that is ultimately shared by all policyholders.

Some 322,000 individuals obtained individual long term care insurance protection last year according to the trade group.  “The ideal time to start to look into this protection is between your mid-50s to mid-60s,” Slome recommends.   To request long term care insurance costs from a designated long term care insurance professional member of the Association visit call the organization at (818) 597-3227 or visit the Association’s website at www.aaltci.org.

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Long term care insurance experts call for no obligation costs information

“Long term care insurance plays an increasingly important role paying for care needs and protecting retirement plans,” declares Jesse Slome, executive director of the American Association for Long Term Care Insurance (AALTCI).  The organization released industry claim projections today based on analysis by leading independent actuarial experts.

In 2012, long-term care insurers paid $6.6 Billion in claim payments to some 264,000 individuals according to AALTCI.  “By 2032 insurers are expected to pay $34 Billion-a-year in benefits a 415 percent increase,” Slome reports.  “The quadrupling in benefit payments is the result of aging of policyholders, policy value increases and the continued growth of individuals purchasing protection,” Slome explains.  “State regulations require insurance companies set aside significant reserves ensuring that today’s insurers are prepared to pay increasing claim costs in the future.”

The Association study focused on traditional long term care insurance policies purchased by individuals or offered to employees at the worksite. “Billions more in yearly long-term care benefits will be paid to the growing number of people who are purchasing hybrid products including life insurance policies that offer long term care benefit riders,” Slome adds.  The Association reports that roughly eight million Americans currently have some form of long-term care insurance protection.  Over 320,000 individuals purchased new coverage in 2012, an increase over 2011, according to the 2014 Long-Term Care Insurance Sourcebook published by AALTCI.

“Taxpayer supported government programs like Medicare and Medicaid simply cannot afford to pick up the growing cost for care as today’s Baby Boomers reach the age when most long term care is needed,” Slome concludes.  “Private long-term care insurance will play an increasingly important role providing individuals with choices and options not available elsewhere.”

The Association recently issued a report citing the largest long-term care insurance claims paid in 2012.  “The largest claim for a female policyholder has reached $1.8 million with the claim lasting nearly 16 years,” Slome notes.  “The largest claim for a male policyholder has reached $1.3 million.”  The vast majority of long-term care insurance claims begin after the policyholder reaches age 70 according to Association research.

“A healthy 60-year-old woman today has a 70 percent chance of reaching age 85,” Slome says.  “If you live a long life, the risk of needing long-term care is enormously high and most people have no plan in place to deal with this reality.”  The long-term care insurance expert recommends individuals interested in long-term care insurance as an option commence planning in their 50s.  “One must health qualify for insurance coverage and health starts to change after age 60,” Slome shares.

For more information, visit the American Association for Long-Term Care Insurance’s website at www.aaltci.org or call (818) 597-3227.

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“The National Association of Insurance Commissioners (NAIC) Senior Issues Task Force

long term care insurance rates addressed by NAIC

meets regularly to discuss important regulatory matters pertaining to this important industry,” explains Jesse Slome, executive director of the long term care insurance industry trade group.  “Recordings of the sessions are made available online and are now ready for interested parties to listen to.”

Slome shared anyone taking the time to listen to these audios will realize how enormously complex a topic long term care insurance is.  “Much of the discussion focused on important matters like rate increases and even the insurance commissioners shared their approaches are all over the board”, Slome shared with insurance agents participating in a regular executive level chat.  “If you listen to the discussion it becomes very clear how enormously complex the issue is.”

The participants in the meeting are very bright, committed individuals Slome noted who know they must take a balanced approach in their efforts to both protect consumers as well as maintain a market for private companies offering protection.  “At one point one of the Commissioners shared the recognition that they had no incentive to run companies out of the business,” Slome shared.  “If Medicaid is to be saved as a taxpayer paid program for the poor, States realize having private individuals be responsible by planning is crucial.”

The long term care insurance industry is still relatively young Slome notes.  “The first policies were designed and marketed in the 1980s but it took years before the product really caught on.” Slome added.  “Much has changed in the past 20 years in terms of health as well as economic demography and so the long term care insurance providers are working with insurance commissioners to keep improving solutions that serve the public and taxpayers who today bear the majority of the cost of providing long term care.”

Those interested in listened to audios from the June 10-13, 2013 NAIC Task Force can visit the NAIC’s website.

Consumers seeking long term care insurance costs and to learn about newer planning options from a designated specialist, a member of the American Association for Long-Term Care Insurance, can also visit the organization’s website or call 818-597-3227.

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According to the report from the Department of Health and Human Services’ inspector general, in 2009 Medicare paid for stays in skilled nursing facilities that failed to meet federal quality of care rule.  The investigators estimated that one out of every three times patients wound up in nursing homes that year, they landed in facilities that failed to follow basic care standards laid out by the federal agency that administers Medicare.

“These findings raise concerns about what Medicare is paying for,” the report said.  “Indeed they should raise concerns,” stated Jesse Slome, executive director of the American Association for Long-Term Care Insurance, a national trade group.  “We know not everyone can afford or health qualify for private long term care insurance but those who don’t want to depend on the future ability of government programs to provide quality care should do some planning.”

Investigators estimated that in one out of five stays, patients’ health problems weren’t addressed in the care plans, falling far short of government directives.   The Office of Inspector General’s report was based on medical records from 190 patient visits to nursing homes in 42 states that lasted at least three weeks.

The sample represents over one million patient visits to nursing homes nationwide in 2009, the most recent year for which data was available.  “Everyone wants the highest quality of care and Medicare benefits but no one wants to pay the taxes so it’s just silly to expect significant change,” Slome declared. “Ultimately we believe private long term care insurance offers the ability to have greater choice when it comes to choosing where care is received and while it isn’t a universal solution for all, for millions it provides a level of assurance, support and funding that is most beneficial.”

For long term care insurance costs connect with an endorsed long term care insurance professional and member of the American Association for Long-Term Care Insurance visit the organization’s website or call the national organization at 818-597-3227.

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