“Medicaid is a valuable and very necessary safety net for America’s poor and less fortunate and it is by far the largest payer for long term care expenses,” explains Jesse Slome, executive director of the American Association for Long-Term Care Insurance.  “But, the more who need, the less this taxpayer-paid program will be able to provide and those who have means need to consider what that means to them.”

In a conference call with consumers earlier today, Slome noted that the data reported in yesterday’s Wall Street Journal noted that food stamp use is swelling, as is Social Security disability recipients.  “In 2008 there were around 9 million recipients and in 2013 there will be nearly 11 million, and there is a definite limit to what programs can provide in the face of greater need,” Slome noted.  “This will be especially true looking ahead as millions of Baby Boomers reach the age when they need long-term care services without any savings or assets to pay for care.”

“If you are in your mid-to-late 50s, have some savings and assets, own a house and have a job then long term care planning is something everyone needs to do,” Slome advocated.  “This is when you’ll have the most options available to you, including long-term care insurance which isn’t a universal solution but certainly can be an important part of avoiding a future need for government assistance.”

“It’s a mistake to look at long-term care insurance as a means of paying the full cost of long term care expenses,” Slome shared with the consumers.  “You’ll have savings and retirement income including Social Security that can be used to pay some of the cost with insurance augmenting and enabling you to have more options such as bringing a caregiver into your own home.”  The Association director advocates a ‘Good, Better, Best’ approach to long term care insurance planning.  “You can make this coverage far more affordable than you think,” he advised the group.

The American Association for Long-Term Care Insurance was established as a not-for-profit trade group and focuses on educating both consumers and insurance professionals.  For additional information on long term care insurance costs visit the organization’s website or call the national organization at 818-597-3227.

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“Long term care insurance can be a very viable business but an insurance company needs both critical scale and a commitment to meeting the needs of policyholders,” explains Jesse Slome, executive director of the American Association for Long-Term Care Insurance.  “Many companies have recognizable names but they really don’t sell many policies and that often is an indicator of things to come.”

Speaking to Association members who questioned the move, Slome noted that the Association recently reported that leading insurers recorded a 30-to-55 percent increase in policy submissions for the first two months of the year.  “Companies like John Hancock and Mutual of Omaha are large entities that are actively building the marketplace,” he added.

“There are several reasons why an insurance company ceases selling products in certain states,” Slome shared with the group.  “It could be in anticipation of filing a newer product with State Departments of Insurance, during which they no longer want to offer a product they believe is underpriced to pay future claims.”  He noted that this was a similar reason other insurers have taken similar steps in California.

“Bottom line, there are still many options for consumers interested in protecting their future,” Slome added.  “And, even when an insurance company ceases selling new policies they still must honor all the policies in-force, something consumers do not always understand.”   The long term care insurance expert noted that there were once as many as 100 insurance companies offering policies.  “Today, we have roughly 10 companies due to mergers, acquisitions and, of course, companies exiting the marketplace,” Slome notes.  “But there once were 100 car makers in the U.S. and today just a handful remain.”

The American Association for Long-Term Care Insurance was established as a not-for-profit trade group and focuses on educating both consumers and insurance professionals.  For additional information on long term care insurance costs visit the organization’s website or call the national organization at 818-597-3227.

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