Health News
Seniors are facing increases in their premiums for long-term-care insurance as insurance companies scramble to deal with increasing longevity of seniors and low interest rates that are "crimping investment returns," Chris Otts reports for The Courier-Journal.
Louisville retiree Judy Witte, 72, said she received a letter from her insurance company recently saying her premiums will go up by 77 percent, from $986 to $1,746 per year.
Her situation is part of a larger trend in which the cost of an average policy has increased by 6 to 17 percent from 2011 to 2012. Long-term-care insurance helps pay for the cost of assisted living, nursing homes, hospice care and home care.
In the Louisville area, assisted living costs about $45,000 per year and nursing homes cost about $72,000 per year and more.
People should buy long-term-care insurance if they can't afford the care they might need without dipping into their savings, Otts reports. "For example, someone who receives $100,000 a year in retirement income but spends only $30,000 might be able to afford an assisted-living center or nursing home," Otts notes. But if that same person spends $80,000 a year, then it would be a wise investment to buy long-term-care insurance because they would not be able to afford the assisted living or nursing home costs.
The right time to buy long-term-care insurance is between age 50 and 60. If Witte had waited to buy hers today, it would have cost her more than $26,000 a year, Otts reports. "To me, it's a precious possession," she said. "It helps me sleep at night to know I have this." (Read more)
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Health News
Cost of long-term-care insurance going up, but it's still a wise investment, depending on your income
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| Judy Witte says her long-term-care insurance premiums are going up at a worrying rate. C-J photo by Matt Stone. |
Louisville retiree Judy Witte, 72, said she received a letter from her insurance company recently saying her premiums will go up by 77 percent, from $986 to $1,746 per year.
Her situation is part of a larger trend in which the cost of an average policy has increased by 6 to 17 percent from 2011 to 2012. Long-term-care insurance helps pay for the cost of assisted living, nursing homes, hospice care and home care.
In the Louisville area, assisted living costs about $45,000 per year and nursing homes cost about $72,000 per year and more.
People should buy long-term-care insurance if they can't afford the care they might need without dipping into their savings, Otts reports. "For example, someone who receives $100,000 a year in retirement income but spends only $30,000 might be able to afford an assisted-living center or nursing home," Otts notes. But if that same person spends $80,000 a year, then it would be a wise investment to buy long-term-care insurance because they would not be able to afford the assisted living or nursing home costs.
The right time to buy long-term-care insurance is between age 50 and 60. If Witte had waited to buy hers today, it would have cost her more than $26,000 a year, Otts reports. "To me, it's a precious possession," she said. "It helps me sleep at night to know I have this." (Read more)
- Aarp Ranks Kentucky Last In The Nation For Long-term Care And Support For Aging, Disabled And Family Caregivers
Kentucky ranks last in the nation in its long-term care services and support for seniors, people with disabilities and family caregivers according to a report compiled by AARP, formerly the American Association of Retired Persons. The state ranked 46th...
- Nursing-home Violations Went Up In Third Quarter, But A Record 8 Facilities Had No Deficiencies
In the third quarter of 2011, inspectors found 403 deficiencies in 56 Kentucky nursing homes, an average of 7.2, up from 5.9 in the second quarter. But no deficiencies were found in eight facilities, the first time that has happened in so many. "I guess...
- Employers: Dropping Group Health Insurance Could Cost You
Looking ahead to 2015, many employers are deciding how to respond to the rising cost of employee group health insurance premiums. A study of employers by the large consulting group Mercer suggests that ?the per-employee health benefit cost will rise by...
- The Affordable Care Act & Nursing Home Abuse
A Look at Nursing Home Abuse Elder abuse in nursing homes is largely due to the inadequate staff levels. According to a 2001 Health and Human Services (HHS) study, 90 percent of nursing homes are understaffed. Lack of adequate staffing is known...
- Class Act, Voluntary Long-term Care Insurance Program Of Affordable Care Act, Is Called-off
On October 14, 2011, the Obama Administration announced that the voluntary long-term care insurance program of the Affordable Care Act, the ?CLASS Act,? is not viable for implementation. The announcement came from Kathleen Sebelius, Secretary of the United...