LTCG releases its 11th annual Cost of Care Study

New analysis provides valuable insight for insurers looking to successfully navigate the dynamic long term care marketplace

EDEN PRAIRIE, MN – January 28, 2016LTCG, the leader in business process outsourcing for long term care (LTC) insurance, has just released its newest Cost of Care Study. This analysis is based on data collected from surveys distributed to more than 47,000 providers last year including nursing homes, assisted living facilities, home care providers (for both skilled and non-skilled care) and adult day cares. The annual study provides detailed information on the cost of LTC services and facilities nationwide, covering more than 190 Metropolitan Service Areas (MSAs).

This year’s study documents continued cost increases across a variety of services based on the survey data collected. The national average cost for Home Health Aides represented the largest increase, jumping eleven percent from 2014 to 2015. In comparison, skilled nursing facilities rose just 2 percent to approximately $100,000 for a private room annually.

Insurers use LTCG’s Cost of Care Study to empower both producers and consumers in making decisions about new or existing LTC coverage. This is especially critical as the industry continues to adapt to new consumer demands, changing demographics and other market trends. For example, new hybrid LTC/life insurance plans are increasingly being introduced by insurers in order to provide greater value to consumers who may not ultimately require extensive LTC services as they age. Yet many of the life insurance producers marketing these plans have limited experience in the LTC market. LTCG’s Cost of Care report provides guidance that will help these individuals and their customers understand how much coverage is appropriate based on the policyholder’s needs and their geographic area. It can also aid policyholders in making decisions about their existing LTC coverage in order to offset rate actions or address inflation offers.

According to Stephen Holland, MD, Chief Medical Officer of LTCG, “We are constantly adapting the report to reflect recent trends such as the move to greater utilization of in-home services. From costs associated with home care provided by registered nurses to daily fees for adult day care, our study provides a comprehensive picture of the costs associated with aging safely and comfortably based on the policyholder’s preferences and clinical needs.”

Since its introduction in 2006, LTCG’s Cost of Care Study has become the gold standard for LTC pricing in the industry. The 2015 Cost of Care released in the January 2016 report includes data collected from 5,000 more providers and 41 more MSAs than those in its previous releases. It is also newly available this year as a traditional report or through an interactive map and web-based format.

The Cost of Care report is just one of the ways that LTCG drives improved financial and operational performance for long term care insurance companies. LTCG also offers end-to-end administrative support for LTC products as well as clinical and actuarial services to support product development and pricing, compliance, underwriting, benefit eligibility and claims processing functions.

For more information regarding LTCG’s Cost of Care Study please contact Adam Hoffman at 317.706.8118 or Or for a web-based demonstration, visit

About LTCG

LTCG is the leading provider of administrative solutions and clinical services to the long term care insurance industry, with nearly two decades of experience in this space. LTCG currently manages over one million policies and serves more than 50 carriers nationwide. The company addresses all types of customer needs and policy requirements—from application processing and underwriting of new business to claims and administration of open and closed blocks. LTCG’s advanced data analytics, actuarial and risk management capabilities and unmatched industry expertise can help organizations manage their business and develop emerging products such as hybrid life/long term care policies. In addition, LTCG provides clients with unique insight about risk management built upon the industry’s largest database of long term care underwriting and claims outcomes. For more information, visit


Adam Hoffman