Cost increase vs. benefit increase

[BobE557728]

We have had long term care insurance thru AARP for many years and until the last ten years were satisfied. We did have the question as to why the premium was going up 11-13% while the benefits were going up 5%. However, when they sent the letter in 2017 saying they were looking for a 23% increase that got our attention, but they presented it as a one time thing they they would get back to normal... BUT there normal seemed to be a much larger disparity. We have so much invested we are reluctantly continuing it given our advanced age but are not taking the yearly benefit upgrade and still our premium is up 10% with 0 benefit increase. We did communicate with them to ask how they could justify this and received back a bunch of boiler plate that basically said ' because we can'. Any young person that decides to do this is making a mistake, invest you money!

[GailL1]

Setting the premiums for LTC insurance has never been easy - thus the concept of balancing premiums to benefits and you get to decide which is the best for you - same benefits with a higher premium or lower benefits with the same or slightly higher premiums.

Think about it - LTC caregiving is like any other employment.  The caregivers are affected by a shortage of workers, affected by workers wanting to make more income, then there are things like higher workman’s comp ins.which is pretty high for this type of worker.

They have a talent and should be compensated as anybody else with a fair wage - including benefits.  

So yea, as cost rise in this industry - whether a single caregiver or a business supplying the caregivers and their services - cost are gonna increase through the years and thus the premiums.

So your have to decide what level of coverage you want that you can budget for and this maybe a year by year decision.

Washington State just started their 1st public LTC program - 

The Washington Long-Term Care Program, known as the WA Cares Fund, is the nation’s first public state-operated long term care insurance program. The Program (RCW chapter 50B.04) will be funded with a .0058 (0.58 percent) payroll tax on all employee wages, beginning July 1, 2023.

It isn’t that great in amount but at least it is something - well something after a few years of paying in at least the minimum.  Link for more info from the WA state government.  

WA CARES FUND 

[WilmaD901429]

I am so glad that you care about your clients. WELLMED has been trying to take over your customers! They tried to tell me and my husband what we could not do and what they would not pay, I was so glad to hear that they were not involved with this company.