“LTC Insurance Payouts Increased 6 Percent In 2017,” by Jadah Riley, Financial Advisor

“U.S. long-term-care insurance companies paid out $9.2 billion in benefits to 295,000 recipients last year, up 6 percent from $8.65 billion a year earlier, according to the American Association for Long-Term Care Insurance.  ‘The total of all benefits paid increased as did the number of long-term-care insurance policyholders on claim,’ said Jesse Slome, director of American Association for Long-Term Care Insurance (AALTCI). … ‘Long-term-care insurance provides more than just money,’ Slome said. ‘It’s as much about having control and choices, while protecting your retirement plans and lifestyle.’”

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

The U.S. spent $162.7 on nursing homes and CCRCs and $92.4 billion for home care in 2016 for a total of $255.1 billion. The vast majority of that spending came from Medicaid and Medicare. The fact that private LTC insurance ponied up $9.2 billion or 3.6% is quite amazing given all the obstacles government financing of long-term care has placed in its way, including easy access to Medicaid after the insurable event has occurred which crowded out demand and artificially low interest rates which made the product unprofitable and more expensive. Please see LTC Bullet:  So What If the Government Pays for Most LTC, 2016 Data Update for details.

LTC Insurance Payouts Increased 6 Percent In 2017

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