Los Angeles, CA, February 26, 2014 --(PR.com
)-- Two decades ago an innovative approach to long term care insurance planning was introduced. New data released by the State of California reveals valuable insights into how the program needs to change to benefit future consumers declares Jesse Slome, director of the American Association for Long Term Care Insurance (AALTCI).
"I once called the Long Term Care Insurance Partnership program the single most important way to encourage planning by middle income Americans," states Slome. "So much has changed in the past 20 years but regrettably some states have not kept up with the times and the report from the California Partnership for Long-Term Care reveals much helpful data that can benefit both consumers and those who hope to avoid having the financing of long-term care dumped on the taxpayer's lap."
According to the latest report covering second quarter data gathered by the California Partnership staff, nearly 190,000 applications for Partnership Long Term Care Insurance have been received since the program started in 1994. Some 127,871 policies remain in force. Only 435 applications for policies were received in during the quarter for which data was gathered.
"Of particular note is the fact that 4,424 policyholders have qualified to receive benefits from their policy," Slome notes. "This number will surely grow as policyholders age and start to reach the age when most people require long term care services." The California report notes that policyholders who received benefits have earned over $237 million of asset protection. "Partnership policies have a special benefit allowing policyholders to protect additional assets should they ever need to turn to State programs for care."
To date some 95 policyholders who have exhausted their benefits have accessed Medicaid (Medical in California) Slome shares. "Most of these policyholders (85) purchased long term care insurance coverage that offered either a one or two-year benefit period," Slome adds. "Having an option to avoid Medicaid when a time for long term care arrives benefits consumers and certainly taxpayers who end up footing the tab," he notes. "This data from one of the oldest and more popular state Partnership plans is a good starting point for those who want to discuss the future."
For long term care insurance cost comparisons call the American Association for Long Term Care Insurance at (818) 597-3227 or visit the Association's website at www.aaltci.org.