Long-term care insurance (LTCI) providers paid about $9.2 billion in U.S. long-term care claims in 2017, or about 6.4% more than they paid in 2016, according to the American Association for Long Term Care Insurance.
AALTCI bases those figures on results from surveys of LTCI providers.
The Westlake Village, California-based group also collects data on the number of people getting LTCI benefits. AALTCI gets a beneficiary count by asking about the number of people on claim on one specific day in the year.
The number of people on claim increased 5.4% between 2016 and 2017, to 295,000, according to AALTCI.
(Related: Long-Term Care Insurers Pay More Claims)
Jesse Slome, AALTCI’s director, noted in a statement about the new data that the total number of people who received LTCI benefits at some point in 2017 is much higher than the number who received benefits on the reporting day used in the survey.
AALTCI posted a summary of the 2017 results on its website Wednesday. A copy of the results is available here.
The average claim per person on claim increased 1%, to an average of about $31,200 per person on claim, according to calculations based on AALTCI data.
U.S. residents spent $269 billion on nursing home care and home care in 2017, according to the Centers for Medicare and Medicaid Services.
Medicaid and Medicare accounted for $168 billion of that post-acute care spending, or 62% of the total.
Private LTCI providers covered about 3.4% of all U.S. nursing home and home care bills 2017, and they covered about 9% of the bills not paid by Medicaid or Medicare.
Slome said one gap in AALTCI’s survey is a lack of information about hybrid products — life insurance policies or annuities that offer long-term care benefits.
“The total value of benefits paid was also undoubtedly larger, as there are thousands of individuals who own linked benefit life insurance or annuity policies that can also provide LTC benefits,” Slome said.
—Read Most Long-Term Care Insurance Claims Are for Home Care on ThinkAdvisor.