U.S. Long-Term Care Insurance Companies Paid $14B in 2023 Claims
The nation’s long-term care insurance companies paid out a record $14.1 Billion to policyholders on claim in 2023. The data was revealed today in a new report from the American Association for Long-Term Care Insurance (AALTCI).
“There were over 350,000 individuals who received claim payments last year,” states Jesse Slome, =director of the advocacy organization. AALTCI reported data for claim benefit payouts for policyholders with traditional long-term care insurance.
“The amount paid by insurers continues to grow as more policyholders age into needing the type of care that long-term care insurance pays for,” Slome explains. “In 2020, insurers paid out $11.6 Billion,” reports Slome adds. “The increase in benefit payouts was anticipated when insurers priced these policies.”
According to AALTCI’s Slome, the amount reported represents claims paid for individuals with traditional or health-based long-term care insurance. “Data for linked-benefit policies is hard to calculate,” the long-term care insurance expert explains. “LTC policies tend to need many years before aging policyholders are likely to need care and there are so many variations gathering this information would be formidable.”
For 2023, the Association reports that benefits were paid to a projected 353,000 policyholders. “This represents a nominal increase over the prior year,” Slome shares. For 2022, AALTCI reported benefits were paid to 345,000 claimants. During the calendar-year 2020, AALTCI data reported 325,000 policyholders received claim benefits.
“Long-term care insurance benefits are typically paid to individuals who receive benefits for qualifying care in their own home or in an assisted living facility,” Slome points out. “Benefits also are paid when policyholders require care in skilled nursing home settings.”
The AALTCI data is gathered and corroborated with leading industry actuaries including historical average annual growth rates from the last 10 years from companies’ year-end reporting data.
Access the 2024 Long-Term Care insurance Price Index and other current data and statistics at the Association’s website. The organization reports industry costs for individuals and couples at ages 55, 60 and 65. Go to https://www.aaltci.org/long-term-care-insurance/learning-center/ltcfacts-2024.php.
The American Association for Long-Term Care Insurance (AALTCI) advocates for the importance of long-term care planning. Since 1998 AALTCI has supported insurance professionals who market both traditional and hybrid long-term care solutions. To access information, go to https://www.aaltci.org or call the organization at 818-597-3227.
Contact