STCi Claims and Payments Rise in 2016
Claims payments made on short-term care insurance (STCi) policies in 2016 rose 5.8 percent compared to 2015, an industry group reported last week.
The number of new STCi claims opened in 2016 rose 23.4 percent compared to 2015, the National Advisory Center for Short-Term Care Information (NACSTCi) reported.
Data was obtained from six of the larger short-term care insurers. The centerĀ did not release the dollar amounts for claims payments or the number of new claims opened with insurers.
āThis is a newer industry so the number of new claims opened is still relatively small, but clearly tens of thousands of Americans received a benefit in 2016 as a result of having purchased STCi,ā said Jesse Slome, director of theĀ center, in a news release.
The centerĀ reported the data as part of its second annual study of policy sales, buyers and claims.
Agents find STCi policies valuable for clients who cannot qualify for or afford the cost of traditional long-term care insurance (LTCi).
Agents who sell Medicare find STCi policies also fill gaps in coverage for older clientele, Slome said.
New Business Premium Up 13.2 Percent
Last month,Ā the centerĀ reported that new business premium collected from STCi policies sold in 2016 rose 13.2 percent compared to 2015 as agents show an interest in the product line.
The numberĀ of STCi policies sold in 2016 grew by 16.6 percent compared to 2015,Ā the centerĀ reported.
STCi typically covers a policyholder for a 360-day period or less for costs associated with home health care, assisted living facilities, skilled nursing home stays and adult day care and hospice.
Periods longer than a year are covered by long-term care insurance, or LTCi.
In 2015, the average yearly cost of an STCi policy was $1,043 and insurers sell thousands of STCi policies every year.
"It's important to know that insurers are paying benefits because that's exactly why people purchase insurance, to have funding when a need arises," Slome said.
The centerās first short-term care insurance summit will be held in Dallas next month and the conference runs in conjunction with the American Association for Medicare Supplement Insurance's Ninth Medigap industry Summit.
InsuranceNewsNet Senior Writer Cyril Tuohy has covered the financial services industry for more than 15 years. Cyril may be reached at [email protected].
Ā© Entire contents copyright 2017 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.
Cyril Tuohy is a writer based in Pennsylvania. He has covered the financial services industry for more than 15 years. He can be reached at [email protected].
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