LTCi makes a difference in family caregiving, study finds

Caregiving can be expensive and chaotic. Having long-term care insurance can make a difference in how families deal with caregiving.

That was the main takeaway from a recent study from the Certification for Long-Term Care and UMass Boston’s LeadingAge LTSS Center . The study tracked four groups of families who are paying for in-home care, two with long-term care insurance and two without.

Among the study’s findings:

• Family members who are caring for a loved one without LTCi faced early retirements, six-figure care costs and drained life savings.
• Insurance eased the financial hit, but didn’t solve the day-to-day stress, especially when it came to finding and keeping reliable caregivers.
• Many policyholders didn’t realize their plans offered respite or care coordination benefits, pointing to a breakdown in communication from insurers.

Both groups expressed anxiety about planning for their own long-term care, and many wished they'd been educated about the topic earlier.

LTCi difficult to understand

Eileen Tell is one of the study’s authors and is principal and CEO of ET Consulting. She told InsuranceNewsNet the study showed that LTCi “is not an easy product to understand.”

“We're talking about family caregivers who are taking care of a loved one, and they may not have even seen the policy or weren't there at the time it was purchased. They're coming in late in the game and trying to understand, what did mom or dad buy? What's involved?”

Those who loved ones had LTCi still had financial concerns, despite being able to tap into the policy’s benefits to pay for care. These family members faced large out-of-pocket costs, mainly resulting from the long duration of care.

“They're referring to things like supporting the daily living costs of their loved one - rides to doctors, diapers or meals and things like the incidental costs, things that the insurance wasn't meant to cover,” Tell said.

Finding caregivers is challenging

Those caring for family members without insurance were concerned about the overall cost of care and the ability to afford quality caregivers. Many in this group struggled with balancing work and caregiving responsibilities, ultimately leaving the workforce or reducing their work hours.

Home care was a problem for both insured and uninsured. Those with insurance reported they were limited to agency-based home care and their LTCi carrier did not help them find care. Those without insurance had more freedom in choosing a caregiver and were more satisfied in using an independent caregiver than in going through an agency.

“Finding help is a problem, and I bet if we had done this study 15 years ago, it might not have been that bad,” Tell said. “But we know that the direct care workforce supply is challenged, and it's going to get worse.”

Family caregivers reported having trouble accessing other services that could help them and their loved ones – whether they had LTCi or not. Those whose family member had coverage said they were unaware of any ancillary benefits – such as respite care or care coordination – that might be available to them. They also reported some use and awareness of home modification benefits. Those whose family member did not have coverage said they were frustrated there is no resource for finding out about public programs or benefits that might be able to help.

LTCi policies were found to be complex and confusing by family caregivers. Some found customer service and outreach to be lacking. Those whose family members did not have LTCi said they liked the concept but were skeptical of whether the carrier would deliver on what it promised. In addition, there was concern over being able to choose the right coverage.

Some whose family members had LTCi said they purchased their own coverage but worried it might not be enough. Many more were on the fence about buying coverage, citing concerns about affordability and insurability. Meanwhile, those whose family members did not have LTCi started to think about their own planning, not wanting to be a burden on family members. However, their planning was centered on wills, advanced directives and disciplined saving.

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Susan Rupe is editor in chief, magazine, for InsuranceNewsNet. She formerly served as communications director for an insurance agents' association and was an award-winning newspaper reporter and editor. Contact her at [email protected].