Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Life Health > Health Insurance > Health Insurance

Rising Cost of LTCI Angers Seniors (The Republic)

Your article was successfully shared with the contacts you provided.

As Boomers continue to age and LTCI premiums continue to face severe rate hikes, the long-term care conundrum is growing — and seniors are getting angry. Many seniors who bought their policies in the ’80s or ’90s, with the expectation that they were locking in a lower rate, can’t afford the new, fees. The repercussions are twofold: one, individuals who can no longer afford their policies stand to lose thousands of dollars of invested cash; two, these individuals may ultimately require state assistance for their long-term care needs. This would be disastrous for our already over-burdened Medicaid system. In Minnesota, for example, Medicaid currently covers about 40 percent of the state’s long-term care. By 2035, if a solution isn’t found, those costs could skyrocket to a crippling $5 billion.