An option is what’s called short-term care insurance, now available from a number of companies. “There is currently a significant opportunity for Colorado seniors to get coverage at a significant savings,” explains Jesse Slome, director of the American Association for Long-Term Care Insurance.

Colorado Long-Term Care Plan Savings

A just concluded analysis found that a 70-year-old Colorado woman could buy coverage for less than half of what a 70-year old woman in Chicago would pay.

“Each insurer establishes their pricing and often you can find and take advantage of some significant savings,” Slome explains. The Association was looking into home care benefits. “Most seniors today want the ability to age and ultimately receive care in their own home,” Slome notes. “Indeed most long-term care is provided in the home and that’s where a home care policy can be very beneficial.”

In this particular instance, the Association was looking at a policy that provided $1,050 in weekly home care benefits for a 52 week period. “In Denver, Colorado a 70-year-old woman would pay $519 for $54,600 of potential benefits,” the Association director shares. “In Chicago, a 70-year-old woman would pay $1,133 yearly for identical coverage.”

To learn more about long-term care planning, call the American Association for Long-Term Care Insurance at 818-597-3227 or visit the organization’s website at https://www.aaltci.org.

Short-Term Care Insurance (STCI) presents a more affordable alternative to traditional long-term care insurance. For many seniors in Colorado, the cost of long-term care can be prohibitive, with monthly expenses ranging from $2,000 to $10,000 or more. STCI policies typically range from $50 to $200 per month, making them a viable option for those on a tighter budget. Additionally, STCI often has simpler qualification processes compared to long-term care insurance, which may involve extensive medical evaluations.

One significant advantage of STCI is that it usually comes with a 0-day deductible period. This means that benefits kick in immediately upon qualifying for coverage—an essential feature for seniors who may face sudden health issues or accidents requiring immediate assistance. Furthermore, STCI can complement Medicare coverage by providing additional financial support without overlapping restrictions found in traditional long-term care policies.

Many health issues requiring care are often resolved within a year; thus, STCI is tailored to meet these short-term needs effectively. It covers various services such as home health aides and nursing home stays for up to one year, ensuring that seniors receive necessary support during recovery periods without incurring overwhelming expenses.

The post Colorado Long-Term Care Plan Offers Significant Savings appeared first on American Association for Long Term Care Insurance.

Almost half of Medicare beneficiaries have either one or two disabilities. The disability risk among seniors is important information for two reasons. The first is that disabilities are a key risk that aging Americans face resulting in the need for costly care. And second, because once someone has a disability, they generally can not qualify for long-term care insurance.

The latest data is highly relevant and important to share prior to turning 65 recommends the American Association for Long-Term Care Insurance. Living a long life means the likelihood of needing aide – and that’s where planning is important.

The data reflected seniors 65 and older who had difficulty hearing, seeing, remembering, dressing or bathing. These are Activities of Daily Living used to qualify for benefits under a traditional long-term care insurance policy.

Disability Risk Among Seniors 85-Plus

The risk of disabilities grows as one ages. Research indicates that among those aged 85 and older, approximately 25% have one disability.

Top-10 Disability Risk Among Seniors

The prevalence of disability among older adults is significantly influenced by various health conditions. As individuals age, they become more susceptible to chronic diseases and disabilities that can impact their daily functioning and quality of life. Based on the information provided, the following are the 10 leading causes of disability after age 65:

1. Arthritis or Rheumatism: This condition affects joints and connective tissues, leading to pain, stiffness, and decreased mobility. It is one of the most common causes of disability in older adults.
2. Back or Spine Problems: Issues related to the back and spine, such as degenerative disc disease or spinal stenosis, can result in chronic pain and limitations in movement.
3. Heart Trouble: Cardiovascular diseases can lead to significant functional impairments due to heart failure or other heart-related issues.
4. Lung or Respiratory Problems: Conditions like chronic obstructive pulmonary disease (COPD) can severely limit physical activity and overall health.
5. Mental or Emotional Problems: Mental health conditions such as depression or anxiety can affect cognitive function and daily activities.
6. Diabetes: This metabolic disorder can lead to various complications that affect mobility and overall health.
7. Deafness or Hearing Problems: Hearing loss can impact communication abilities and social interactions, contributing to isolation and disability.
8. Blindness or Vision Problems: Visual impairments significantly affect independence and the ability to perform daily tasks safely.
9. Stroke: A stroke can lead to long-term disabilities affecting mobility, speech, and cognitive functions.
10. Cancer: Various types of cancer may cause disabilities either directly through the disease itself or indirectly through treatments that impair physical function.

The post Disability Risk Among Seniors 65-Plus appeared first on American Association for Long Term Care Insurance.

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.

The post Latest Data for 2024 Long Term Care Insurance Claims appeared first on American Association for Long Term Care Insurance.

“Women are more likely to need long-term care because they generally live longer lives,” explains Jesse Slome, AALTCI’s director. “Among women, 61% are likely to develop a chronic disability often simply due to living a long life.”

The Association director was sharing data about long-term care need and length of paid long-term care services with senior specialists who help educate consumers about the risk and need.

“Some 51 percent of women age 65 and over will need paid long-term care before they die,” Slome shared. “Meanwhile only 39 percent of men age 65 or older will need such care.”

Married people are less likely to need paid long-term care services Slome reported. “Again, it’s 51 percent of unmarried people over age 65 who will require paid long-term care in their lifetime,” Slome shared. “Whereas it’s only 43 percent for married people, part of which is likely that the healthier spouse becomes the caregiver.”

The long-term care insurance expert and advocate noted that long-term care insurance planning was off the radar during the pandemic. “We have a new generation of men and women entering the long-term care planning sweet spot. “They need information including facts and figures to understand the potential future financial risk they face,” Slome added.

To read the latest long-term care need data go to https://www.aaltci.org/long-term-care-need/.

The American Association for Long-Term Care Insurance (AALTCI) https://www.aaltci.org advocates for the importance of planning and supports insurance professionals who market both traditional and hybrid LTC solutions. Access comprehensive long-term care insurance statistics and data at https://www.aaltci.org/long-term-care-insurance/learning-center/ltcfacts-2024.php.

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The overwhelming majority of consumers experiencing a premium increase on their long-term care insurance chose to pay the higher premium.  The findings of a new analysis were released today by the American Association for Long-Term Care Insurance.

“Between 50 and 60 percent of policyholders choose to keep their original policy benefit levels and pay the increased premium,” explains Jesse Slome, American Association for Long-Term Care Insurance director.  ”While no one likes to pay more money, these individuals recognize the value of this protection because they are older and thus closer to the risk of needing long-term care.”

According to the Association between 20 and 30 percent of individuals notified of an approved premium increase chose to adjust their policy provisions.  “Many buyers initially selected the 5 percent inflation growth option,” Slome notes.  “When they review their policy benefits along with their present financial situation, it often makes sense to reduce the growth factor and thus avoid the premium increase.  In some cases, they may even pay less money for their continued long-term care insurance coverage.”

Between 10 and 20 percent of consumers elect the non-forfeiture option Slome shares.  “Typically, these individuals will stop paying premiums but will still qualify for benefits should they need qualifying care,” Slome notes.  “The last time we conducted such an analysis, it was common for only 1-3 percent of policyholders to drop coverage,” Slome adds.

The long-term care insurance executive attributed the change to ‘premium increase fatigue’ as well as two other factors.  “The long-term care insurance industry has failed to convey to consumers how this protection is benefiting hundreds of thousands of families each year,” Slome shares.
“And, for some, the value of accrued benefits are perceived to be sufficient for meeting future needs. Paying continued premium is viewed as no longer making financial sense.”

Rate Increases – Long-Term Care Insurance Data

Rate Increase and other long-term care insurance statistics,  To access the latest long-term care insurance statistics go to https://www.aaltci.org/ltcfacts-2022.php.

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 long-term care solutions.  To access information go to https://www.aaltci.org or call the organization at 818-597-3227.

The post Rate Increases Long-Term Care Insurance; How Consumers Act appeared first on American Association for Long Term Care Insurance.

“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.

The post Covid Deaths Should Prompt Rebranding Of Long-Term Care Insurance appeared first on American Association for Long Term Care Insurance.

“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.

The post Out-Of-Pocket Costs For Nursing Home Care Expenditures To Grow appeared first on American Association for Long Term Care Insurance.

“In years past insurers often filed new rates for long-term care insurance,” explains Jesse Slome, AALTCI’s director.   “New rates were typically five to 10 percent higher, sometimes more.”

According to the Association’s annual Long-Term Care Insurance Price Index a 55-year-old male could pay $950 annually for a policy providing $165,000 of benefits.  A 55-year-old woman could expect to pay $1,500.  Both amounts are identical to the findings of the prior year’s price index.

“Prices for traditional long-term care insurance likely remain stable for a number of reasons,” cites Slome.  “First, insurers have a good sense of the most important factors that go into pricing this insurance.  In addition, investment returns have remained relatively stable.”  Insurers depend on investing premiums to accumulate funds to pay future anticipated claims.

The 2022 Long-Term Care Insurance Price Index reported that a couple both age 65 could expect to pay $3,750 combined.  The two policies could provide each with $165,000 of future benefits.  Adding an option that increased future benefits by three percent annually would cost the couple almost twice as much ($7,150 combined).

“Having some price stability is good,” Slome notes.  “However, consumers should not use that as a reason to delay investigating long-term care insurance costs.  What you’ll pay goes up each year you wait and one change in your health can prevent you from health-qualifying for coverage entirely.”

Data on long-term care insurance costs can be accessed on the Association’s website.  In addition, the Price Index compares costs for traditional long-term care insurance as compared to linked benefit options. To access, go to www.aaltci.org/LTCFacts-2022.

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.  These specialists can provide information along with long-term care insurance quotes and policy comparisons for both traditional and linked benefit long-term care insurance options.

The post Cost For New Long-Term Care Insurance Policies Remain Stable appeared first on American Association for Long Term Care Insurance.

“With so many couples, there’s often one spouse who is resistant, usually the husband,” explains Jesse Slome, director of the long-term care insurance organization.  “This new information will help those who have doubts understand the significant consequences and the benefits of this important protection.”

Slome was sharing data from a recently released study by Milliman Actuarial.  “When one spouse has a long-term care claim, the odds of a claim by the second spouse is four times higher than would normally be expected,” Slome shared with a group of long-term care insurance sales professionals.  Data comes from Milliman’s “Is Your Spouse Contagious” study.

Access the Milliman Couple Claims Report

Click here for the couple claims information.

“Following the death of a spouse who has been on a long-term care insurance claim, the odds of the second spouse needing long-term care within a year triples,” Slome adds.  “You tell that to all the recalcitrant husbands who tell their wives, don’t worry honey, I’ll never need care but you get some if you like.”

The Association director speaking to the group of long-term care insurance professionals noted that the Milliman analysis examined a pool of 50,000 long-term care insurance claims before the Covid-19 pandemic.

2021 Long-Term Care Insurance Statistics

See the latest long-term care insurance statistics and data posted by the Association.

“The need by the second or the surviving spouse was for both home care as well as facility care,” Slome pointed out.  “Consumers need to understand that long-term care insurance provides benefits.  And, that when insurers lower spousal discounts, as many are, there is a reason.”  The Association recently reported that insurers were reducing available spousal discounts when both partners obtain coverage from 30 percent to 15 percent.

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

The post New Long-Term Care Insurance Couple Claims Data Should Be Shared appeared first on American Association for Long Term Care Insurance.

“When you live a long life, there is a real risk that you’ll need assistance with daily activities like walking, bathing and dressing,” explains Jesse Slome, director of the long-term care insurance organization.  “But too few people are prepared and when a need starts to exist your planning options, specifically long-term care insurance, are no longer available.”

The Association director shared data with leading long-term care insurance professionals who regularly counsel seniors.  “Some 28.7 percent of Medicare beneficiaries who live at home reported serious difficulty walking or climbing,” Slome shares.  “Almost one in five (17.1%) reported a serious difficulty concentrating, remembering or making decisions.”

“Without understanding that issues like this creep up on you as you age, people have no urgency to start planning prior to Medicare eligibility,” Slome adds.  “The Association’s position is that the sweet spot for long-term care planning is between ages 55 and 64, prior to Medicare eligibility.  That’s when you have the most options available and added time to prepare, whatever your ultimate choice for dealing with this real risk.”

In addition to cost and claims information, the Association posts relevant information regarding long-term care need statistics.

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 obtain long-term care insurance quotes call the organization at 818-597-3227 or visit their website at www.aaltci.org.

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