Federal LTC Enrollment Soars

An August study by the Government Accountability Office showed that, in 2009, premium increases of up to 25% were largely due to costs associated with a 5% automatic compound inflation option. Despite the increase, 46% chose to keep their coverage unchanged. An equal percentage opted instead to reduce coverage to 4%, either by keeping the original plan (20%) or by opting for FLTCIP 2.0 (26%); the latter offers enhanced coverage that includes 100% coverage of the cost of home care and adult day care. The previous plan had covered 75% of these.

Jesse Slome, executive director of the American Association for Long-Term Care Insurance, said of the numbers, “In addition to those enrolling in the plan, we estimate some 10,000 or more eligible individuals purchased private coverage directly as a result of all the promotion.”

Regarding the GAO study, Slome had said earlier, “Instead of hyperbole, we now have facts to prove that the majority of consumers understand the value of their long-term care insurance protection and do not drop or reduce their coverage even when faced with a rate increase … “People understand the risk they face when they purchase long-term care insurance and the protection becomes even more valuable as they age themselves.”