EDEN PRAIRIE, MN – February 12, 2015 – LTCG, the leader in business process outsourcing for long term care insurance, has just released its annual Cost of Care Study. This data-driven analysis reveals important industry insights on the costs of long term care (LTC) services and facilities. The study identifies and compares costs associated with receiving LTC services in the home, in nursing homes and in assisted living facilities across different geographic areas nationwide.
More than 10,000 Americans are turning 65 every day, increasing the need for a fact-based perspective on the true costs related to these services as well as future trends. Many of these baby boomers have no experience with LTC, and are unaware of how much costs can vary by provider and geography. As a result, LTCG’s Cost of Care Study has become an extremely valuable tool for insurance companies.
The Cost of Care Study is used by these companies in order to empower producers and consumers in the decision-making process with regard to new or existing coverage. Insurance companies can private label the report, cobrand it with their company name or offer it to these stakeholders directly. The report is a useful tool for consumers and producers looking to make decisions about the amount of new coverage needed, whether to adjust coverage to offset a rate action and how best to address inflation offers and coverage changes. It can also assist in supporting a company’s claims and customer service functions, enabling them to better answer inquiries about the cost of services and facilities in a specific geographic area.
“LTCG’s Cost of Care Study provides powerful insight that insurers need to support everything from their product development to the claims and customer service functions,” said Peter Goldstein, CEO of LTCG. “Whether an insurance company wants to private label this report or release it through LTCG, it serves as a valuable resource for actuarial teams in addition to applicants, existing policyholders and producers.
The report is developed from data collected from 35,000 provider surveys; including 8,500 nursing homes, 12,500 assisted living facilities (ALFs) and 13,000 home care providers. This information is analyzed to show the differences in average costs by region, state and across the nation for a wide variety of provider types.
This year’s study includes insightful data such as the top 10 most expensive states for ALFs. ALFs are growing in popularity as a care setting. In fact, studies show that 45% of those needing long term care chose an ALF in 2013, compared with 20% in 1996. These states are Washington D.C., New Jersey, Alaska, Massachusetts, Connecticut, Maine, Maryland, New York, Delaware and Hawaii. For example, the average annual cost for a one bedroom unit in an ALF in the United States is $50,940. The cost in Washington, D.C., the most expensive area, exceeds $97,000. The new report also documents that the average annual cost of a private room in nursing homes has reached $97,612.
LTCG has released annual Cost of Care studies for more than a decade. This is just one of the ways that LTCG utilizes data and analytics to help long term care insurance companies improve their financial and operational performance. LTCG also offers robust actuarial services and analytics 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 adam.hoffman@LTCG.com
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 1.3 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 www.LTCG.com.