Home Care Makes Up Most Long Term Care Claims
As the presence of long term care continues to increase across the country, more people are looking into the details of long term care and the direction the industry is moving. Though nursing homes were once the dominating care setting, recent data revealed that is no longer the case. The majority of long term care claims paid to policyholders are for home care, according to this new data.
Long Term Care Claims
This new data shows that of all long term care claims, home care constitutes approximately 59%, or more than half. Nursing home care is the second most common care setting, making up approximately 27% of all long term care claims. Assisted living is the least common choice and makes up approximately 14% of long term care claims. You can view the breakdown in the chart below.
A positive trend in the long term care insurance industry is that most good individual policies now provide benefits for home care. Though some of the older policies and even some newer group plans don’t cover home care, a large percentage of plans from the larger, more reputable providers do.
This is great news for consumers because home care is significantly cheaper than nursing home care.
Cost of Care
The national average cost of home care is $44,479 annually, according to the 2013 Genworth Cost of Care Survey. The average cost of a private room in a nursing home is almost double at $83,950 annually.
This difference in cost has a huge effect on those paying for care and even with long term care insurance, choosing the less expensive option is the better choice if possible. Because home care is so much cheaper, you are much less likely to exhaust your long term care insurance benefits if you choose that care setting.
Home care is also usually the preferred care setting because it does not force the care recipient to uproot from their home and leave their community. Rather, they can remain engaged with their loved ones and continue living in the comfort of their home. This is very important to those people who fear that long term care automatically means a nursing home, but that isn’t necessarily true.
Long Term Care Insurance
The long term care insurance industry pays out nearly $11 million in benefits daily, and most of those dollars go towards home care. For those who believed that nursing homes were the only choice with a long term care policy, though that may have been the case in the past, it most certainly is not the case anymore.
Home care is by far the leading care setting and now makes up the majority of long term care claims. Long term care insurance can help you protect your assets from the high cost of care, be it facility care or home care, and help you preserve your nest egg for years to come.
We help our clients shop the market and navigate the different long term care options. If you are interested in learning more about long term care insurance, you can fill out this form and we will get in touch with you soon to send you a free quote comparison in the mail.
It’s crucial to do your research and meticulously read the policy you plan to purchase to ensure it does provide benefits for home care and any other details that are important to you. Read more about how to best plan for long term care or request your free quote now.