Long Term Care Insurance Association Reports Positive Claims Data

Positive news for the nation’s aging senior population and taxpayers.  An increasing number of individuals who possess long term care insurance are receiving benefit payments.

The Association worked today with one leading long term care insurance company MedAmerica Insurance Company to help create heightened awareness of the growing importance of this form of protection.    “There’s much media coverage about the importance of long-term care planning but rarely is the story told of how this benefits real people today,” Slome shares.  “We salute and recognize MedAmerica Insurance Company for their help in enabling our organization to tell this important and powerful story.”

The news story has already appeared in some 90 major media outlets with the potential to reach thousands of consumers.

Links to some of the key news media reporting the story:

MarketWatch
http://www.marketwatch.com/story/long-term-care-insurance-paid-claims-increase-home-care-benefits-growing-2015-02-18

Boston.com  (Boston Globe)
http://finance.boston.com/boston/news/read/29297517/long_term_care_insurance_paid_claims_increase

Chicago Business
http://www.bizjournals.com/chicago/prnewswire/press_releases/Georgia/2015/02/18/DC33223?ana=prnews

Association Urges Heightened Dementia-Prevention Awareness

The nation’s leading long term care insurance trade organization calls on health and consumer groups to heighten awareness of advances in understanding ways consumers can significantly reduce the risk of getting dementia.

“Another major study finds that some simple lifestyle changes can reduce the risk of cognitive decline by 60 percent,” explains Jesse Slome, executive director of the American Association for Long-Term Care Insurance (AALTCI).   ”If there was a pill that had the same effect, everyone over age 50 would be taking a daily dose.”

According to the long-term care insurance organization, dementia, which can include Alzheimer’s disease, affects 15 percent of the over 70 U.S. population.  “The percentage affected increases as one ages,” Slome adds.  “This is not a nice disease, so when one hears of research that demonstrates simple ways to reduce risk, a call for heightened awareness is called for.”

Slome is referring to recent study reported in the Wall Street Journal.  Conducted at Cardiff University in the U.K., researchers followed 2,235 men for 30 years.  “The study started when these men were initially between ages 45 and 59 years old,” Slome notes.   The report found that men who consistently did a few things on a consistent basis reduced their risk for cognitive decline and dementia by 60 percent.

The activities included eating three or four servings of fruits and vegetables daily, maintaining a normal weight and a body-mass index of between 18 and 25, not smoking and limiting alcohol consumption.  Walking two miles a day or some similar activity proved to have the greatest impact on risk.

“Considering the millions of Americans who will be living into their 80s, 90s and beyond without a financial plan in place to deal with the costs of long-term care, it would be prudent for a massive educational effort,” Slome advocated.  “We’ll do our part to encourage more people to plan and to live healthy lifestyles.  I hope others join in the efforts.”

20 States Long Term Care Insurance Partnerships Lauded By Association

Twenty states now offering consumers a significant incentive when purchasing long term care insurance coverage were applauded today by the American Association for Long-Term Care Insurance.

“We have said the Partnership Long-Term Care program was the best kept secret because it was created to provide middle income individuals with an special incentive to purchase coverage,” declares Jesse Slome, executive director of the American Association for Long-Term Care Insurance (AALTCI).   The Long Term Care Partnership Program is a joint federal-state policy initiative to promote the purchase of private long term care insurance.   According to Slome, the Partnership Program is intended to expand access to private long term care insurance policy to pay for long term care services.

“States required that consumer purchase inflation growth option but many states have failed to change the formula which makes the policies far more expensive than consumers are willing to pay,” Slome explained.  “Some 20 states now allow consumers to select a low one percent growth option and that makes coverage highly affordable.”

The 20 states include Florida, Texas, Virginia Colorado, Tennessee and Georgia.   “We applaud the states which have acted to provide their residents a significant advantage and hope others follow,” Slome said.  “Especially when a new generation of long term care insurance policies allow consumers to purchase coverage with a one percent growth option that can be changed in future years without having to re-meet health qualification requirements.”

Long Term Care Insurance Buyers Tip For Different Aged Couples

There’s no reason a husband and wife both applying for long-term care insurance should spend 50 percent more each year declares the director of the American Association for Long-Term Care Insurance.

“Take a common scenario where the husband is 65 and the wife is 55,” share Jesse Slome, executive director of the Association, a national trade group focused on creating heightened awareness. ”They could pay $2,475 a year by choosing one leading insurer or they could pay $3,675 yearly if they chose a different insurer an almost 50 percent difference.”

Slome was sharing real examples of why it is increasingly important for consumers to comparison shop when considering long-term care insurance protection. “People mistakenly think this is a commodity and that all prices are going to basically be the same but that is clearly not true today,” Slome advised consumers.

“If the husband is older, one long-term care insurance combination will be better,” Slome notes. “If the wife is older, another is going to be the better buy, this is one of those nuances that few people are aware of.”

“Contacting an insurance company directly is not going to get you the comparison you seek,” Slome advised the group. “It will put you in touch with an agent who will clearly favor that company but he or she may not be appointed to sell other companies so don’t expect an unbiased comparison.”

“Prices for virtually identical coverage will vary considerably, discounts available will vary and even acceptable health conditions will vary from one insurance company to the next,” Slome notes. “We encourage comparison shopping but few consumers have the time or knowledge to really compare policies. True expertise comes from experience that is really acquired over time.”

Best Long Term Care Insurance Fact For 2014 Revealed

2014′s most interesting fact pertaining to long term care insurance was announced today by the American Association for Long-Term Care Insurance

“We find ourselves deluged at the end of the year with lists of most interesting people, most interesting news stories and we look back on the most interesting facts and findings pertaining to long term care,” explains Jesse Slome, executive director of the American Association for Long-Term Care Insurance (AALTCI). ”I’ll grant everyone this pales in comparison to the selection of Time magazine’s person of the year or People’s sexiest man of the year, but it’s a good time to have some fun and lighthearted banter.”

According to AALTCI the 2014 fact of the year pertains to the fact that the nation’s long term care insurers paid a record $7.5 billion in claim benefits.

“Why is this the most important fact?” Slome asks rhetorically. “Because Americans are not aware of the benefits already provided to hundreds of thousands of individuals who purchased long term care insurance and are now on claim receiving benefits for greatly needed care.”

The Association reports that roughly 273,000 Americans had active long term care insurance claims that went into the $7.5 billion paid.

2015 Long Term Care Insurance Forecast Shared

Single digit growth in long term care insurance sales along with heightened interest in asset-based products is forecast for 2015 according to the American Association for Long-Term Care Insurance.

“We expect to see sales of traditional long term care insurance grow both in terms of policies and premium written,” predicts Jesse Slome, executive director of the American Association for Long Term Care Insurance (AALTCI).   ”The growth should be in the three to five percent range for policy sales and roughly eight to 10 percent for new premium overall for 2015.”

The forecast should be welcome news for many of the nation’s long term care insurers who have experienced double digit sales declines in 2014.  “Sales would be larger if more insurance professionals re-entered the long term care insurance marketplace,” Slome admits.   “I don’t see that happening over the short term in 2015 but it is good to see some major insurers are investing heavily in trying to rebuild distribution for the product.”

The Association forecast predicts continued growth of hybrid or asset-based long term care insurance products.  “These products are much harder to track and report as more life insurance companies add a long term care benefits option to their life insurance contracts,” Slome notes.  “If adding a benefit like LTC gains traction for life insurance sales, then considering the number of life insurance agents, we expect many more Americans will have some form of long term care protection in place at the end of 2015.”

Slome noted issues facing the traditional long term care insurance industry continue to pose a threat to future growth.  “We are seeing more consumers frustrated with the claims payment process who are turning to the media as part of the resolution-seeking process,” Slome acknowledged.  “Today, it only takes a few negative stories that go viral to impact any goodwill the industry has built-up.  That continues to be a worrisome condition.”

Long Term Care Insurance Association Director Addresses Nursing Home Drug Abuse

According to reports and a recent lawsuit as many as one in five nursing home patients are given antipsychotic drugs that are not only unnecessary but can also be extremely harmful for older patients.

“Anyone who has visited a skilled nursing home facility quickly realizes what a difficult job those working there face,” explains Jesse Slome, executive director of the American Association for Long-Term Care Insurance (AALTCI).  “That said, the reports are extremely concerning and a reason more consumers will want the means and option to be cared for in their own home.”

Reports have stipulated that patients in the nation’s 15,500 nursing homes are given antipsychotic drugs used as chemical restraints especially for those patients suffering from dementia.   These drugs are intended for people with severe mental illness.

“According to a report aired today by NPR, some 300,000 nursing home residents are currently receiving antipsychotic drugs,” Slome adds.  “The report indicates they are administered to suppress the anxiety or aggression associated with Alzheimer’s disease and other dementia.”

“Consumers continue to associate long-term care insurance with nursing home care,” Slome advised a group of long term care insurance specialists this morning.

“The industry keeps strengthening that association with many reports citing costs.  Instead, we should be focusing on the fact that long term care insurance pays for home care services which is what patients want and can provide a greater degree of control over situations like this.”

Slome urged the agents to focus on the fact that just over half of all new long term care insurance claims begin and end paying for home care services.  “Until you break the cycle of connecting your product with something people don’t want and now have an even greater reason to view it negatively, you won’t see consumers view this protection positively,” Slome admonished.