“Long-Term Care Planning: What Advisors Should Know”

“Long-Term Care Planning: What Advisors Should Know,” by Ginger Szala, ThinkAdvisor

Quote:

“The financial situation of the long-term care insurance fund is apparently precarious due to the additional costs caused by the Corona pandemic. According to a media report, the providers of long-term care insurance are facing a gap of billions of euros. The ‘Bild’ newspaper reports that the nursing care insurance fund urgently needs a financial injection from the Federal Ministry of Finance.”

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

We anticipated this problem in “LTC Bullet–LTCI in Germany,” August 15, 2002: “[A]fter only seven years in operation, Germany’s new LTCI system is already in deficit. It collects in taxes less than it spends in benefits. It has consumed the surplus of funds originally created by withholding benefit payments for the first three months when payroll deductions were initially levied.” Are you listening WA Cares Fund?