U.S. consumers may be more confident about the odds that insurers will pay valid long-term care insurance claims now than they were back in 1990.
The Long Term Care Innovation Subgroup, part of the National Association of Insurance Commissioners, put the slidedeck in the packet for a public hearing on long-term care innovation it has scheduled for the NAIC’s summer meeting. The NAIC plans to start the hearing at 10 a.m. Pacific Daylight Time Thursday, in the Manchester Grand Hyatt in San Diego.
AHIP, a group that represents issuers of long-term care insurance and disability insurance as well as issuers of major medical coverage, worked with LifePlans, a Waltham, Massachusetts-based consulting firm, to survey both long-term care insurance buyers and nonbuyers in 2015. LifePlans has conducted similar consumer surveys in the past.
In both 1990 and 2015, the survey team asked the non-buyers to react to several possible reasons for not buying long-term care insurance.
The percentage of participants who agreed that “don’t believe insurers will pay” is a very important reason to avoid long-term care insurance dropped to 13 percent in 2015, from 36 percent in 1990.
In both years, the top consumer objecting to buying long-term care insurance was cost, but the percentage who cited cost as a very important obstacle fell to 51 percent, from 58 percent.