Providers of long-term care may need to consider other financial options when caring for the elderly, as research shows that long-term care insurance policies are increasing monetarily and leaving many baby boomers without the ability to afford such coverage.
Compared to five years ago, premiums for these insurance policies are 30 to 50 percent more for people who are 55 to 65 years of age, according to the Herald Times. Even in the last year, the policy rates have increased by 6 to 17 percent.
The main reasons behind this escalating costs includes the extended lifespan of human beings today, the improved medical care that boosts the life of the chronically ill and the increased amount of elderly keeping their long-term care coverage policies.
"Any rate increase for long-term care has to be reviewed and approved by the Indiana Department of Insurance," Rebecca Vaughan, director of the Indiana Long Term Care Partnership Program, told the news source. "Indiana has an extensive rate review process, which includes both an actuarial review and administrative review. State regulation also provides criteria that a company must meet before a rate increase can be approved."
With these skyrocketing prices, some insurers such as Prudential Financial and Met-Life have halted providing any long-term care coverage altogether, according to the Morningstar. Another issue that has forced this hike in costs is that, in the past, insurers have had to cover claims that were much larger than they had ever expected.
While some end up looking at Medicare or Medicaid to cover their long-term care, the news source mentions this may not be the best solution. Medicare only insures people under specific instances and for a shorter amount of time while Medicaid coverage requires a vast amount of prerequisites for eligibility.
Medical providers who wish to help elderly patients handle their financial woes may need to speak with a long-term care consultant. Such professionals offer medical billing consulting services and other imperative financial advice.