Long-term care: The present and the future

The long-term care (LTC) insurance industry has been getting a lot of attention lately. At least one state-level government, Washington, has developed and adopted a social program that targets the need for LTC insurance. Several other states have taken developmental steps to address LTC needs through similar programs or by other means.

The need for LTC services has been fairly well documented since the inception of the private LTC insurance industry in the 1980s. Many Americans rely solely on the coverage from existing social programs (i.e., Medicare and Medicaid) and/or self-funding to cover LTC services. Based on estimates from 2014, only 11% of adults ages 65 and over living in non-facility care settings were covered by private LTC insurance. Additionally, the number of insurance companies offering traditional LTC coverage has decreased since the product was first introduced. The need for LTC is not going away, especially as the population continues to age.

In this article, Milliman’s Stephanie Moench and Shawn Stender discuss the future of the LTC insurance industry.