Long-Term Care Insurance Industry Paid $7.5 Billion in Claim Benefits
American Association for Long Term Care Insurance reports 13-percent increase in paid long-term care insurance benefits.
INN Breaking News, February 5, 2014
The American Association for Long Term Care Insurance has paid nearly $7.5 billion in claim benefits to 273,000 individuals in 2013. The group said the total benefit payments increased by 13 percent, and the number of long-term care insurance policyholders on claim grew 3.4 percent. Insurers paid $6.6 billion to some 264,000 policyholders in 2012.
According to The American Association for Long Term Care Insurance's (AALTCI) study of claimants, some two-thirds of all newly opened long-term care insurance claims paid for care in the home (51 percent) or in an assisted living community setting (18.5 percent). The association said a long-term care insurance policy is really nursing home avoidance protection. Some 30.5 percent of newly opened claims in 2012 begin in a skilled nursing home setting.
The association added that claim payments will continue to increase as more people purchase long-term care insurance policies and older policyholders reach their 70s and 80s. A prior AALTCI analysis projected that insurers likely would pay $15 billion in 2023, and $34 billion in long-term care benefit payments in 2033, when today's 60-year-olds reach their 80s.
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