The largest long-term care insurance claim paid totaled $3 million while the largest claim still being paid has exceeded $1.7 million in paid benefits, according to a report from the American Association for Long-Term Care Insurance.
“Last year the nation’s long term care insurance companies paid $6.6 billion in claim benefits to over 200,000 individuals,” Jesse Slome, AALTC executive director, said in a statement.
According to the association’s report, the amount of claim benefits paid increased 8 percent compared to the prior year. Women accounted for nearly two-thirds (65 percent) of new claims opened during 2011. About one in four (24.1 percent) of new claims commence between ages 70 and 79 while 65.5 percent start after the policyholder reached age 80.
“One in 10 claims start when policyholders are in their 50s or 60s, often the result of an accident or illness,” Slome said. “The widespread question asked by individuals considering long-term care insurance is will I ever use it. The best we can do is gather information on how people use their benefits.”
According to the association, Alzheimer’s disease was the leading cause for claims in a nursing home or assisted living community while cancer was the top cause for claims that begin at home.
Half of all new individual long-term care insurance claims pay for home care services, the association’s research found. New claims by women receiving care at home accounted for 32 percent of new claims with 18 percent of men receiving benefits for home care.
“Less than one-third (31 percent) of new claims begin with the policyholder receiving care in a nursing home,” Slome said.
The association study revealed that the largest claim still being paid at the end of 2011 had reached $1.7 million, for a woman who had been receiving care for nearly 15 years.
“There are a number of claims still being paid that have exceeded $1 million,” Slome said. “In this particular case, the claimant is a woman who purchased coverage and began receiving care three years later.”
