Over half a million Americans are expected to apply for long-term care insurance before the year concludes according to a projection from an industry trade group.
This marks significant continued growth in awareness and action among consumers explains Jesse Slome, executive director of the American Association for Long-Term Care Insurance http://www.aaltci.org. "In 2010 the Association reported that 475,000 Americans obtained long-term care insurance coverage either on an individual basis or through their employer an increase over the prior year."
According to the projection, interest and sales continue to trend up which can be attributed to several factors. "Consumers in their 50s and young 60s are more aware than ever of the risks involved in living into their 80s and 90s," Slome explains. "The millions of pre-retirees understand that government programs will not be sufficient to deal with the burgeoning number of aging baby boomers and that new federal programs will be more suited to those with existing health limitations."
The Association director notes that significant growth in sales will result from the thousands of federal employees signing up for coverage through the Federal Long-Term Care Insurance Program (FLTCIP) where open enrollment closes June 24. "I would expect tens of thousands of newly covered individuals in the program with an equal number who searched and compared coverage on an individual basis," Slome adds.
Over eight million Americans currently have long-term care insurance protection and roughly 200,000 received benefits from their coverage in 2010 according to the 2011 Long-Term Care Insurance Sourcebook. The majority (56 percent) of individual applicants are between the ages of 55 and 64. "People increasingly understand the need to look into this protection prior to retirement age," Slome concludes. "That is when costs are more affordable and you are still most likely able to health qualify for coverage."
Showing posts with label federal. Show all posts
Showing posts with label federal. Show all posts
Monday, June 20, 2011
Wednesday, July 22, 2009
Study Reveals Federal Long-Term Care Insurance Plan Flaws
The proposed federal health plan being discussed by the U.S. Senate includes proposed long-term care protection. The Community Living Assistance Services and Supports Act (CLASS Act) would provide coverage paid by individuals who would have the ability to opt out.The goal of the American Association for Long-Term Care Insurance, the industry's professional organization, is to serve as an advocate for sound long-term care planning that ensures the future of all Americans -- those who can afford private long-term care insurance, and those who can not.
That said, the proposed CLASS Act (Senator Kennedy's new tax on Americans) is not the solution and a report released today by the American Academy of Actuaries reveals the plan's significant flaws. The plan's proponents believe a $65-per-month tax for individuals would be sufficient to provide a $50 average monthly benefit. The study reveals that the sound monthly premium level would be closer to $110 a month or over $1,300 a year per-individual.
The CLASS Act proposes a voluntary federal program that is sustainable and actuarially sound over a 75-year horizon. Based on the current assumptions, the independent actuaries project the new government fund established to pay long-term care claims will be insolvent by 2027. Sometime well before that date, taxpayers can expect the voluntary plan to become a new mandatory tax.
The report notes that part of the problem with the proposed plan is the increased likelihood of adverse selection. Simply stated, those individuals in poorer health will sign-up for the plan and those who are in better health will likely opt-out. Once claim payments begin after the five-year waiting period, one can expect an increasingly steady flow that will stretch the fund beyond what proponents expect.
The American Association for Long-Term Care Insurance is the independent trade organization providing information on long-term care planning to consumers and providing marketing and sales support to information. The organization maintains the industry's most comprehensive website on long-term care planning which can be found at http://www.aaltci.org/
If you would like to receive a PDF copy of the American Academy of Actuaries letter to the U.S. Senate Committee on Health, Education, Labor and Pensions, please click here to send an E-mail to Jesse Slome, Executive Director.
That said, the proposed CLASS Act (Senator Kennedy's new tax on Americans) is not the solution and a report released today by the American Academy of Actuaries reveals the plan's significant flaws. The plan's proponents believe a $65-per-month tax for individuals would be sufficient to provide a $50 average monthly benefit. The study reveals that the sound monthly premium level would be closer to $110 a month or over $1,300 a year per-individual.
The CLASS Act proposes a voluntary federal program that is sustainable and actuarially sound over a 75-year horizon. Based on the current assumptions, the independent actuaries project the new government fund established to pay long-term care claims will be insolvent by 2027. Sometime well before that date, taxpayers can expect the voluntary plan to become a new mandatory tax.
The report notes that part of the problem with the proposed plan is the increased likelihood of adverse selection. Simply stated, those individuals in poorer health will sign-up for the plan and those who are in better health will likely opt-out. Once claim payments begin after the five-year waiting period, one can expect an increasingly steady flow that will stretch the fund beyond what proponents expect.
The American Association for Long-Term Care Insurance is the independent trade organization providing information on long-term care planning to consumers and providing marketing and sales support to information. The organization maintains the industry's most comprehensive website on long-term care planning which can be found at http://www.aaltci.org/
If you would like to receive a PDF copy of the American Academy of Actuaries letter to the U.S. Senate Committee on Health, Education, Labor and Pensions, please click here to send an E-mail to Jesse Slome, Executive Director.
Subscribe to:
Posts (Atom)
