27 Mar Long-Term Care Insurance Continues to Increase
According to the 2015 Long-Term Care Insurance Price Index, long-term care insurance premiums increased approximately 8.6% in year 2014 as a result of higher claim costs and low interest rates. In year 2015, approximately $7.5 billion was paid in claims. The American Association for Long-Term Care Insurance (a trade association for long-term care insurance providers) projects claims to reach $34 billion by 2032 as baby boomers age. Long-term care insurance costs are greater for women since they generally outlive men. As baby boomers continue to age, a larger segment is going to need to plan for care whether it be by tax incentives or by forcing coverage or by other means. The government needs to further address this issue since it cannot continue to pay for the increasing numbers of uninsured in the future. The average annual cost of nursing home in the U.S. is presently $87,600.