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Few LTCI claims begin in nursing homes

Insurance Forums Staff

The vast majority of long-term care insurance claims begin in the home, according to an industry analysis of claims conducted by the American Association for Long-Term Care Insurance (AALTCI).

“People continue to mistakenly associate long-term care insurance exclusively with skilled nursing home care,” says Jesse Slome, director of the Los Angeles-based long-term care insurance organization. The Association released findings April 20 from its study of 2017 claimant data.

According to AALTCI, 52.1% of all new long-term care insurance claims in 2017 began in the home setting. “Nearly one in five claims (19.7%) started in an assisted living facility and only 28.2% commenced in a skilled nursing home,” Slome says. The organization analyzed data from six leading long-term care insurance companies.

The nation’s long-term care insurance companies paid $9.2 billion in claim benefits in 2017 to some 295,000 individuals according to AALTCI.

“Both the dollars paid and the number of individuals receiving benefits continue to grow as more Americans benefit from having this important protection,” Slome added. “The total value of benefits paid was also undoubtedly larger as there are thousands of individuals who own linked benefit life insurance or annuity policies that can also provide LTC benefits.”

Women accounted for over two thirds (68%) of newly opened claims in 2017. “Long-term care planning is especially important for women because they are far more likely to need care,” Slome says. The study found that 19% of new claims by women started in a nursing home setting while 34% began at home.

“Individuals want to remain in their own home when care is needed and long-term care insurance enables them to get the care they need in the setting they prefer,” Slome says.



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