A report says an increase in the size of the average claim has pushed long-term care costs higher, leveling a heavier burden on the shoulders of patients who don't have life insurance to cover those expenses.
Aon Risk Solutions released its 2011 Long Term Care General Liability and Professional Liability Actuarial Analysis, which analyzes the severity and frequency of claims for long-term care insurance and determines how much financial loss results from those claims. According to the report, the severity of long-term care liability cliaims rose to $153,000 in 2010, up from $125,000 in 2005. That figure also rose 4 percent year-over-year and should reach $159,000 in 2011. The report noted that while claims decrease in incidence, their cost increases, pushing the expenses long-term care patients pay higher.
"For the long term care profession, controlling liability costs is necessary if we are to make do with dwindling resources for patient care and adequate staffing," said former Kansas Governor Mark Parkinson, president and CEO of AHCA.
Rising costs can quickly sap older Americans of the savings they had earmarked for retirement. A life insurance policy can step in to cover long-term care costs, minimizing the financial impact of later-life diseases and care issues.