A recent article in the Wall Street Journal, titled Long-Term-Care premiums Soar, reported that, just like the title indicates, long-term care insurance premiums are on the rise. According to the article, there are approximately eight million Americans who own long-term care insurance, each of whom pay an average of $2,150 per year for their coverage. And, while this figure may already seem high, the article went on to report that many of the insured in this group may see their annual premiums increase even more. In fact, some long-term care insurance companies are raising premiums by as much as 40 percent.
The reason for these increases is simply that more people are using the insurance than insurance companies expected. For one thing, technology has made it possible for people to live longer lives. Coupled with the fact that less people are cancelling their long-term care insurance policies than expected, a situation has arose where insurance companies have been forced to raise premiums in order to remain profitable.
So what does this mean for Arizona seniors who are considering the idea that they may some day require long-term health care? It does not necessarily rule out long-term care insurance, but it does mean that people will likely have to pay more for coverage. What it also means is that more seniors may be considering Arizona Medicaid as an option. When long-term care insurance is not available, and paying out-of-pocket is not possible, many Arizona seniors turn to ALTCS/Medicaid to help cover the costs of their long-term care. And, these types of issues should not be confronted without professional advice. An Elder Law attorney can help seniors determine whether ALTCS/Medicaid indeed provides a viable solution.