The total value of long term care insurance benefit payments for 2006 was $3.3 billion, according to a new study.
Although payout data for prior years was not collected, the 2006 disbursements were probably the highest amount ever for a one-year period, estimates Jesse Slome, executive director of the American Association for Long Term Care Insurance, Westlake Village, Calif., which conducted the study.
Around 30,000 claims were filed in the period, says Slome. The average duration between the time the policy was bought and a claim filed was 7.5 yrs, the study found.
Around 8 million Americans now own LTC insurance policies bought either individually or through their employer, Slome notes.
The study of data from 8 of the nation’s largest LTC insurers found about 34% of the insurance benefit payments they made in 2006 were allocated for home care.
In addition, close to 30% of LTC benefits paid went toward assisted-living costs. Around 36% was allocated for nursing-home care.