“Long-Term Care Claims Skyrocket In 2022”

“Long-Term Care Claims Skyrocket In 2022,” Advisor Magazine

“Claims in the long-term care (LTC) insurance segment skyrocketed 20% in 2022, creating a difficult combination with inadequate pricing assumptions on older blocks of business that have forced significant reserve increases, according to a new AM Best report. Rising interest rates have provided some relief to the companies underwriting this high-risk product, given the potential boost to investment yields. However, the market challenges for this segment will persist despite the improved interest rate environment, according to the Best’s Market Segment Report, ‘Long-Term Care Claims Skyrocket in 2022.’”

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

If you think private LTCI has problems, cast a glance at the public LTC “insurance” system. Medicaid and Medicare are the dominant players, but Social Security is big too because Medicaid recipients have to contribute their SS benefits to supplement Medicaid. Medicare and Social Security are under water fiscally. Medicaid doesn’t even have a phony trust fund to pretend it’s solvent. The national debt is creeping up to $33 trillion and government debt service costs are through the roof due to the same increasing interest rates that help private LTCI. “Trends that can’t continue, won’t,” said the late economist Herb Stein. That denouement is upon us.