Washington, D.C. (February 1, 2016)—Private long-term care insurance has an important role to play in addressing America’s long-term care needs, according to a new report from the Bipartisan Policy Center (BPC).

“Initial Recommendations to Improve the Financing of Long-Term Care,” released today, offers several recommendations for America’s long-term care crisis. The report notes that personal savings and government programs alone cannot meet the public demand for long-term care financing. It recommends making long-term care insurance more affordable and available to help consumers receive the services they need. 

“The high and rising cost for long-term care services threatens the financial and retirement security of millions of Americans,” said American Council of Life Insurers (ACLI) President and CEO Dirk Kempthorne. “The BPC’s report makes a valuable contribution to the national conversation on ways to help people prepare for their long-term care needs, including the important role of private long-term care insurance.”

Increased long-term care insurance coverage would have many benefits for consumers and the nation. A 2014 ACLI study found that if one quarter of adults purchase and maintain a long-term care insurance policy, by 2050 Medicaid will save $47.7 billion and consumers will save $69 billion in out-of-pocket expenses annually.

Long-term care insurance covers a variety of services that help people live at home or receive care outside the home. Services can be provided at home, in a nursing home or community-based care facility, such as adult day care, or in an assisted living setting. Policies may include reimbursement for respite care (temporary care to help relieve the primary caregiver), medical equipment, care coordination services, and even home modifications. Some policies pay family caregivers.

Long-term care insurance also can be combined with life insurance and annuities, providing consumers with increased flexibility as their needs change in retirement. 

            “Long-term care insurance can help people pay for the cost of care in a setting that allows them to live with dignity and without being a financial burden on their families,” said Governor Kempthorne. “We commend the BPC for its work on this report and welcome the opportunity to work with policymakers in Washington, D.C. and the states to find solutions to America’s long-term care needs.”

The American Council of Life Insurers (ACLI) is a Washington, D.C.-based trade association with approximately 300 member companies operating in the United States and abroad. ACLI advocates in federal, state, and international forums for public policy that supports the industry marketplace and the 75 million American families that rely on life insurers’ products for financial and retirement security. ACLI members offer life insurance, annuities, retirement plans, long-term care and disability income insurance, and reinsurance, representing more than 90 percent of industry assets and premiums. Learn more at www.acli.com.