A new report from Genworth (via NY Times) reports that Long Term Care costs are rising, but with a bit of a twist. There’s an emerging disparity between the growth rate in facility care costs and the growth rate in home health care costs.
We got a call from a client in Washington who was 59 and comparing Long Term Care Insurance options. She rattled through a list of benefits like payment duration, daily benefit amount, and then got to inflation protection. She dropped the 5% simple bomb without missing a beat and we continued on.
The tax credit offered to residents of Virginia remains in place for 2013, narrowly escaping the ax after a bill failed in committee to kill it. As part of a general transportation bill to reduce tax rates and add other consumption taxes such as gasoline tax, the bill sought to destroy this incentive to buy Long Term Care Insurance offered to Virginia residents.
Thrivent Financial is now selling Long Term Care Insurance once again. Thrivent, a non-profit Minneapolis-based company, announced welcome news for the Long Term Care Insurance industry in October 2012. The Thrivent LTC policy will compete with many other private-market offerings, and has a fairly standard set of options for those planning for the risk of Long Term Care.
If you’re considering purchasing Long Term Care coverage at work, you may want to weigh the seemingly low prices with some of the fine print and other limitations that come with this type of Long Term Care Insurance. After all, LTC plans are complicated, so you want to be sure you’re comparing apples and apples.
Long Term Care Insurance policies have been sold since 1974 in some form or another. Coverage for Long Term Care was not ubiquitous, however, until 1996. Until the mid-2000s, many insurance companies could honestly claim that they had never raised their LTC policy rates in history.
Virtually all companies who sold Long Term Care Insurance over a period of many years have had to go back and adjust rates on existing policyholders. Mutual of Omaha has increased rates on several policy forms it sold in the past. The reasons for rate increases vary, and this page is general in many ways and not specific to Mutual of Omaha.
The Sunshine State accounts for 3.30% of the Long Term Care Insurance market, and 6.2% of the U.S. population, meaning Floridians protect themselves at smaller proportions than the rest of the country. Florida is also a retirement haven, with many baby boomers moving here each year, so Long Term Care insurers would be remiss to ignore this market.
By any metric, Americans are under-insured when it comes to Long Term Care coverage. Long Term Care planning is of growing concern in the larger healthcare debate as baby-boomers race towards retirement. Ultimately, social scientists expect a dramatic increase in the need for Long Term Care services at a national level, and on an unprecedented scale.
The Evergreen State accounts for 2.89% of the Long Term Care Insurance market, and 2.2% of the U.S. population, meaning Washingtonians protect themselves at higher proportions than the rest of the country. Washington residents are also known to be some of the healthiest in the United States, so Long Term Care insurers would be remiss to ignore this market.