Insights into the Long-Term Care Market Trends
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More than half of Americans turning 65 today will need some
type of long-term care (LTC). More than 20% will likely need
care for five or more years.
10,000 Americans turning 65 every day
Median cost of over $100,000 for a one-year stay in a private
nursing home room
Boston College Center for Retirement Research
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Tremendous variation in the duration and intensity of care
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Misconception that the private long-term care insurance market has
collapsed
Reality
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Millions of Americans are covered by private LTC insurance today
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ACLI members paid out nearly $12 billion in LTC insurance claims in 2019
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Consumers find private LTC coverage to be invaluable
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Growing Hybrid Long-Term Care Market
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Growing Interest in State and Federal Long-Term Care Initiatives and Programs
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Examples
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Washington Cares
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California Study
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WISH Act
Create Opportunities for Public/Private Partnerships
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Nonduplication of Benefit Provisions
Inflation Protection Requirements
Flexibility in Pricing and Benefit Structure
Ability to Provide a Cash Value in Stand-Alone Long-Term
Care
Opportunities to Age-in-Place
Consumer “Protections”
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The long-term care marketplace presents a significant financial challenge for aging Americans, with over half of those turning 65 expected to require some form of long-term care. Despite misconceptions about the collapse of the private long-term care insurance market, millions of Americans are covered by private LTC insurance. There is a growing interest in hybrid LTC options and state/federal initiatives to address long-term care needs. Opportunities exist for enhanced benefit provisions, inflation protection, pricing flexibility, and consumer protections in the long-term care sector.
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Presentation Transcript
Long-Term Care Marketplace Jan M. Graeber Senior Actuary ACLI jangraeber@acli.com July 15, 2021
State of the Long-Term Care Market More than half of Americans turning 65 today will need some type of long-term care (LTC). More than 20% will likely need care for five or more years. 10,000 Americans turning 65 every day Median cost of over $100,000 for a one-year stay in a private nursing home room Boston College Center for Retirement Research Tremendous variation in the duration and intensity of care 2
Private Long-Term Care Market: Misconceptions vs. Reality Misconception that the private long-term care insurance market has collapsed Reality Millions of Americans are covered by private LTC insurance today ACLI members paid out nearly $12 billion in LTC insurance claims in 2019 Consumers find private LTC coverage to be invaluable Growing Hybrid Long-Term Care Market Growing Interest in State and Federal Long-Term Care Initiatives and Programs 3
State and Federal Long-Term Care Initiatives Examples Washington Cares California Study WISH Act Create Opportunities for Public/Private Partnerships 4
Opportunities Nonduplication of Benefit Provisions Inflation Protection Requirements Flexibility in Pricing and Benefit Structure Ability to Provide a Cash Value in Stand-Alone Long-Term Care Opportunities to Age-in-Place Consumer Protections 5
