AARP Posts LTCI Fact Sheet

Ujvar has increased the estimate for the average annual assisted living facility base rate to $41,000, from $34,000. The average hourly rate for a licensed but non-Medicare-certified home health aide increased more slowly, to $20, from $19.

Ujvar cites a George Washington University study that suggests private LTCI is paying only 12% of LTC costs. In 2009, Kassner estimated based on data from the Centers for Medicare & Medicaid Services and Thomson Reuters that private LTCI was paying only 7% of LTC costs.

Ujvar kept the 2009 fact sheet estimate that private LTCI pays about 60% to 75% of the cost of care for coverage holders who use paid care.

Ujvar also keeps the 2009 fact sheet sections on topics such as LTCI rates and rate stability. She notes that the number of states that have adopted an LTCI rate stability standard approved by the National Association of Insurance Commissioners (NAIC), Kansas City, in 2000 has increased to 41, up from 36 in 2009.

Another bit of information that Ujvar retains is an estimate from AALTCI that every 1 percentage point drop in long-term interest rates increases the premium amount that an insurer must charge to hold LTCI product performance steady by about 10% to 15%.