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5 Top States for Long-Term Care Insurance Use: AARP

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In spite of all of the gloom and doom surrounding private long-term care insurance, more than 10% of the older residents of five states have it.

Long-term care insurance penetration among residents ages 40 and older ranges from 2.5% in Nevada to 12% in the top state, with a median of 4.7%.

(Related: 5 New Facts About Retirees’ Real Health Care Bills)

AARP has published state-by-state data on long-term care insurance ownership, and dozens of others related to long-term care needs, delivery systems and finance systems, in a database linked to its latest long-term services and supports state scorecard.

The idea of a general long-term care state scorecard may stick in the craw of insurance agents, financial advisors and other professionals who help clients plan for acute care and long-term care needs. The best location for any specific client will depend on that client’s finances, nonfinancial resources, care needs, personal relationships, and personal values. The worst state for the average client might be heaven for your client.

The database behind the scorecard may be more useful for a financial professional who is looking for easy-to-use data to use in prospecting efforts, to flesh out sales proposals and marketing presentations, or to create newsletter articles and social media posts.

Financial professionals might be able to use the data in presentations aimed at consumers who expect to use annuities or life insurance to pay for long-term care costs as well as for those with an interest in long-term care insurance.

The long-term care insurance penetration data in the database includes figures from the National Association of Insurance Commissioners and other sources.

Another interesting table shows the percentage of nursing home residents in a state who appear not to really need nursing home care.

Older man with caregiver (Photo: Shutterstock)

In those states, a long-term care planner might be able to help clients make long-term care insurance benefits and other resources go further by connecting them with assisted living facilities or providers of home care services, adult day care services. In some cases, in states in which services such as adult day care services scarce, planners might even consider participating in nonprofit or for-profit efforts to fill the void.

Other interesting tables cover indicators such as median nursing home costs, the supply of assisted living facility units and the percentage of residents who need long-term care services.

Site users can create maps using the data. They can also see the underlying data, and export the underlying data into downloadable spreadsheets.

Here’s a look at the states with the highest private long-term care insurance penetration rates. In many of those states, worksite long-term care programs for state, local and federal government employees have produced unusually high penetration rates. (We excluded the highest-ranking jurisdiction, the District of Columbia, because it’s not a state. A successful long-term care insurance program for federal employees has given the district a 16% long-term care insurance penetration rate penetration rate.) 

5. Iowa: 10.14%

4. Nebraska: 11.8%

3. Hawaii: 12.1%

2. North Dakota: 12.1%

1. South Dakota: 12.2% 

— Read What Expense Drives a Typical Older Senior’s Budget? on ThinkAdvisor.


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