Commercial long-term care insurance in the United States began in the 1970s and 1980s. It is a relatively late insurance product and has now become the most popular insurance product in the US health insurance market. Its characteristics are comprehensive coverage, diverse benefits, emphasis on home care and community care, emphasis on the classification of care service levels, emphasis on transactional payment methods, flexible and diversified policies, full tax benefits, and sales in a group manner.
Who needs long-term care?
According to the latest research report of the American Cancer Society in 2016, nearly 1.6 million people in the United States are diagnosed with cancer each year, of which 64% survive for at least 5 years. Nearly 1.2 million people have heart disease each year, of which 60% survive. Currently, 22 million people in the United States have had heart disease, stroke and cancer.
A high survival rate should be a happy thing, but many families are also worried about it. The high cost of care and medicine makes it difficult for many families to maintain or even file for bankruptcy. Many people will ask, isn't there medical insurance? Ironically, 78% of people who file for bankruptcy due to large medical expenses are those who already have medical insurance. According to a survey by the American Cancer Society, more than 67% of medical expenses are actually indirect expenses (such as nursing fees), which are not included in medical insurance and patients need to pay out of pocket.
According to statistics, the chance of a house fire is 1/1200, the chance of a car accident is 1/240, the chance of hospitalization for surgery is 1/15, the chance of needing long-term care at the age of 65 is 2/5 (40%), and the chance of needing long-term care at the age of 75 is 3/5 (60%). With the increasing prevalence of aging in the United States and various diseases, many elderly people or patients are facing a very practical problem-they need to go to a nursing home or hire someone to take care of themselves at home.
How to pay for long-term care expenses?
There are three main ways to pay for long-term care expenses:
- Medicaid (public medical assistance)
- Use your own money
- Long-term care insurance claims
Some people may ask, isn’t there Medicare (public medical insurance)?
Medicare is a government-funded acute medical care program for Americans over 65 and people with disabilities, such as doctor visits, hospitalization, surgery, medication, and other medical professional care, but does not include daily care, such as eating, dressing, bathing, and going to the toilet.
What is long-term care insurance?
Many American families have already relied on long-term care insurance for their old age. Traditional long-term care insurance is a type of consumer insurance. If you don't use it, you're just wasting money. It's expensive and not cost-effective, so generally no one will choose it.
