“Changes In The LTC Industry Call For Advance Planning By Seniors Who Intend To Age In Place”

Long-term-care law might be changing again, and solvency is sought,” by Elizabeth Hovde, Washington Policy Center


“LTC is experiencing the perfect storm. Just when the industry is rebalancing and shifting away from institutional care, the number of caregivers is decreasing. The trend began several years ago, but the impact was obvious only recently. Greater competition for limited services, new minimum wage laws, and inflationary pressures have been driving up prices. Home health care costs rose 12.5% in 2021 alone, increasing more than the CPI, and exceeding the popular 3% inflation option on long-term care insurance (LTCI) policies that had previously seemed generous. If my predictions are correct, this is only the beginning of the challenges that elderly clients and their families will face. As the industry transition continues, it will strongly favor care for people who own enough private insurance or have enough personal savings to pay higher wages. I suspect aging in place will be out of reach for middle income individuals unless LTC planning becomes an integral part of their retirement plans. As advisors, we’ll have to advise clients to save significantly more if they intend to self-pay, purchase insurance with higher benefits and inflation protection, or combine the two.”


LTC Comment, Stephen A. Moses, President, Center for Long-Term Care Reform:

The key to obtain quality LTC in your preferred setting is to pay privately. That’s always been true but is today more than ever. Tell prospects!