Long-Term Care Changes

The long-term care industry is becoming increasingly disrupted. Last weekend in the Wall Street Journal, an article appeared addressing the affordability of long-term care. As many have learned, the cost of long-term care insurance has skyrocketed, and many insurance companies that previously offered the product have exited from the market place.

Recently, Genworth Financial, which is the largest seller of long-term care insurance in the United States, declared that it would stop writing new individual long-term care policies in the State of California. The company’s withdrawal from the State of California may portend Genworth’s future action in other states. It is becoming increasingly difficult for families to address the cost of skilled-nursing care or other long-term care facilities. In Wisconsin, cost of a skilled-nursing home can exceed $300.00 per day. In fact, at one of the nursing homes in Janesville, Wisconsin, the cost does exceed $300.00 per day, depending upon the needs of the patient. In addition, the Medicaid system in the United States is becoming excessively drawn upon to cover the long-term care costs of millions of aging Americans. While the idea of government support is useful, the extent of the support is beginning to drain the federal budget. As the Baby Boomers increase in age, we will only see an even larger scope of Medicaid applicants.

It is never too early to consider how you will address the cost of long-term care. While my firm does not sell the insurance product, I can provide you information on long-term care insurance alternatives and options. The State of Wisconsin has also published a comprehensive report, which can be found at oci.wi.gov/pub_list/pi-047.pdf. The report provides detailed information on long-term care insurance policies and other aspects of the long-term care industry.