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Long-Term Care Insurance Volatility

Nursing home costs continue to increase, as more and more people need the facilities for longer and longer periods of time. This is the result of an aging population with increasing lifespans and medical science’s ability to keep elderly people alive longer, even when they are very ill.

People do not have many options to pay for their nursing home care. The government will pay for it, if all other assets of the patient have been depleted. That means that people have to pay for it themselves in most cases.

It is possible to purchase long-term care insurance to cover the costs.  However, it is very expensive and there are few providers.

The reasons for that, are partially explained by what happened to GE as Bloomberg reports in “GE CEO Renews Pledge to Study Breakup After $6.2 Billion Stumble.”

GE used to be in the insurance business.  However, the company was never particularly good at it. Insurance is never something for which GE was known. The company got out of the insurance industry, but it never found a buyer for its long-term care insurance portfolio.

In the process of selling the policies, the company had greatly underestimated the future costs and the number of policy-holders who would make claims. GE has estimated that these old liabilities will result in the need to pay $6.2 billion, for which it had not planned.

That is why it is difficult and expensive to get long-term care insurance. It is very difficult for insurers to estimate future claims.

Reference: Bloomberg(Jan. 16, 2018) “GE CEO Renews Pledge to Study Breakup After $6.2 Billion Stumble.”

Hear From Our Clients
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I heard Cindy’s presentation at a Senior Luncheon at my church, and was very impressed. She helped my daughter and me understand many aspects of elder law. Josh has also been very helpful in my planning to enter an independent living situation . I have told many friends about them.

- Charlotte

The very best elder law attorney and staff anyone could ever ask for! I have referred a number of clients to Cindy and she never disappoints. She is kind, caring, and extremely thorough in making sure everything is completed as it should be. I highly recommend Cindy for anyone needing lawyer services; she truly goes above and beyond for every client she helps and has had a huge impact in so many peoples’ lives. Thank you, Cindy and staff, for everything that you do- I’m so glad to know you!

- Kerri

Cindy and the Nelson Elder Care Law team are trustworthy and helpful. They are the experts in elder care law. At Leaf Cremation, we entrust our families to the care of the Nelson team when their services are needed.

- Pierce

Josh Nelson, and his staff, have been amazingly helpful to our family. The ins and outs of nursing homes, the rules and regulations that govern Medicare and Medicaid are daunting and the folks at Nelson Elder Care Law have been informative, responsive, and above all, empathetic. I cannot emphasize enough how their service has taken a weight off of our shoulders especially during a world pandemic that has targeted nursing homes across our country. I highly recommend retaining Josh and his firm!

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I had a simple legal question to them that I needed answered and they very helpful in giving me the information I needed. I highly recommend them and will reach out to them if I need more advice or assistance. Thank you for taking your time to just answer a couple of questions I had!

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