About 90% of baby boomers do not carry long-term care insurance policies, which are primarily designed to pay for nursing homes. North Jersey reports that in the area, a nursing home costs about $300 a day, a steep figure that still does not motivate many seniors to keep their long-term care policies or to get one at all. Health insurance covers medical expenses, and long-term care insurance covers expenses related to daily activities and custodial care. Both Medicare and Medicaid have specific and limiting guidelines about income and medical need when it comes to providing any long-term care coverage.
Nasdaq offers a few explanations for this recent development, citing that premiums have increased, often doubled in cost, making it difficult to maintain what sometimes may seem like a luxury expense. The market for long-term care insurance policies has also decreased by 80% and consists of about 20 companies. There is also the issue of rejected applications. Nasdaq adds that LTC Tree rejects about 35% of applicants due to their health profiles, which often include chronic ailments.
Some baby boomers have also misunderstood their coverage options under Obamacare. Due to confusing verbiage, Nationwide reported that over 70% of boomers thought the Affordable Care Act would provide coverage for long-term care expenses. Solutions to this problem do exist, and baby boomers may benefit from getting two policies and sharing the household discount and coverage benefits with a spouse. Nasdaq also contends that rising in-home care costs and nursing home expenses will make it very difficult for anyone, with or without long-term care insurance, to afford these services.
Long-term care has been in the news before as more baby boomers reach an age that qualifies for these services. Even celebrity boomers have begun to get attention as their various health conditions bring them into the spotlight as a result of their long-term care decisions. Inquisitr recently reported on Glen Campbell this past spring when he was moved to a long-term care Alzheimer’s facility. The country legend had been working on his music until the disease began to show its devastating effects.
Long-term care insurance is of great value to those who want to plan ahead for chronic illnesses or sudden ailments with physical or mental devastation. Since many insurance companies no longer carry these policies, it is wise to carry long term care coverage as soon as possible. Baby boomers will benefit from keeping their current policies and adding on long term care coverage, while younger people may want to consider acquiring the coverage before it is too late or too expensive for them.