Pivoting On Long-term Care Insurance: Who Should Really Own It?

There is a problem in America. We all know it. We all don’t want to talk about it. So in that way, we are all ignoring the consequences so we can all suffer together.

The NAIC’s (National Association of Insurance Commissioners) Senior Issues Task Force worked with the American Academy of Actuaries on the current and future financial crisis brewing in this country. According to their research, $468 BILLION dollars was spent in 2021 on care and support. Of that, $334 BILLION came from Medicaid.

Why is that important to you that Medicaid paid for three-fourths of the care bill? Because the American Taxpayer supplies the $334 Billion in Medicaid funding. Which amounts to about $1,000 per man, woman, and child in the United States… per year.

One of the major solutions recommended to NAIC is to reduce this funding crisis is for “Gen X-ers” to purchase their own insurance coverage. Primarily to lessen their personal financial risk when paying for their own care. But the insurance products they buy must also be affordable as they pay higher taxes to keep Medicaid afloat. Besides higher taxes, there is the cost of caring for their aging parents by leaving the workforce or actually paying the care bills outright. Helping Gen Xers is a huge challenge for insurance companies. Can insurers offer affordable premiums and meaningful benefits? If they are offered, will the average American in this age group take advantage of the opportunity when they are the youngest, healthiest, and hitting their peak earning years?

We are having these conversations regularly with our clients -even clients as young as their 40’s. Ignoring the crisis is not an option, and I appreciate Insurance News Net’s Susan Rupe for covering this topic to keep us better informed as to who and how this problem is being addressed at the State and Industry levels.