Long Term Care Insurance Industry Pays $6.6 Billion In Benefits
Over 264,000 Receiving Benefits, Home Care Accounts For Half Of New Claims
LOS ANGELES, March 4, 2013 /PRNewswire/ — Some 264,000 individuals were receiving long term care insurance benefit payments as of December 31, 2012 according to a just-released report.
“Insurers paid $6.6 billion in benefits last year to individuals needing care at home, in assisted living communities as well as in skilled nursing facilities,” explains Jesse Slome, director of the American Association for Long Term Care Insurance that released the findings. “Americans are living longer and an increasing number are requiring long term care, little of which is covered by Medicare or traditional health insurance.”
According to the Association, leading causes for long term care insurance claims include Alzheimer’s disease, stroke, arthritis and cancer. Female policyholders account for roughly two-thirds of all long-term care insurance claims and benefit dollars paid by the industry. Care received in the home accounts for half of all newly opened individual insurance claims AALTCI reports. “People associate long term care with nursing home care but insurance actually enables many people to remain at home when care is needed,” Slome adds.
The largest open claim reported by the trade group for the prior year had exceeded $1.7 million. “The cost of long-term care can be quite high,” Slome acknowledges. “Having insurance to pay even some of the cost is enormously valuable.”
Eight million Americans currently have some form of long term care insurance protection. “More people recognize the value of this protection which does so much more than just pay for qualifying care,” explains Bill Jones, President of The MedAmerica Companies, a family of leading long term care insurance carriers. “Long term care insurance provides choice and control, protects retirements and lifestyles, and allows loved ones to care about you rather than being forced to care for you. You can’t put a price on that kind of value.”
About American Association for Long-Term Care Insurance
AALTCI is the national trade organization established in 1998 to create awareness regarding the importance of planning for long term care. For free guides outlining ways to reduce long term care insurance costs visit the Association’s website.
SOURCE American Association for Long-Term Care Insurance