Long term care for 2010 and beyond

Though the future of long term care is still hazy, the proposed CLASS Act might be a good indication of where the path may lead. According to industry-insider Jesse Slome, the influence of the Act is still tough to determine: “Unless the economy comes roaring back and Washington is again flush with taxpayer dollars, the best legislators will be able to accomplish is an underfunded, initially voluntary plan. In simple terms, get a plan in place, but kick the can down the road a bit further in terms of financial solvency.” However it turns out, Slome offers a few outcomes to consider for 2010: some good and some not-so-good:

On the bright side:

? The changes may provide the industry with an opportunity to rethink current policies. Slome provides this example: “…Level premiums really no longer serve the intended purpose (making products attractive for elderly buyers). In fact, they make insurance costly for younger buyers. LTCI supplement policies (like Medicare Supplement) could gain traction.”