TDCI RECOGNIZES LONG-TERM CARE AWARENESS MONTH IN NOVEMBER

The following information was released by the Tennessee Department of Commerce and Insurance (TDCI):

The Tennessee Department of Commerce and Insurance is recognizing November as national Long-Term Care Awareness Month by encouraging consumers to learn more about the importance of long-term care planning today.

As Americans live longer, they will face greater needs and an increased incidence of chronic illness and disabilities, such as diabetes, cancer, heart disease, and other conditions that require medical assistance.

According to recent figures from the U.S. Department of Health and Human Services, someone turning age 65 today has almost a 70% chance of needing some type of long-term care services and supports in their remaining years. By 2030, one in five residents in the US will be 65 or older, and the number of those in need of long-term support services in the U.S. (which is estimated at 14 million today) is expected to grow to 27 million by 2050.

While long-term support services can be found in at-home or community-based settings or in facilities, such as nursing homes, those services come with ever-increasing costs. In 2024, figures show that the annual median cost of a semi-private room in a skilled nursing facility increased 7 percent, from $104,028 to $111,325, while the cost of a private room rose 9 percent, from about $116,800 to $127,750. Roughly 17 percent of Americans will spend over $100,000 on long-term support services. Almost 9 percent will spend over $250,000 on long-term care.

A long-term care insurance policy can offset the financial burden of future care that is not covered by Medicaid or Medicare. According to industry estimates, the long-term care insurance industry paid $14.1 billion in benefits to 353,000 individuals with insurance protection in 2023.

"During the upcoming holiday season while gathering with family and friends to share memories and enjoy delicious meals, I want to encourage Tennesseans to have a conversation with their loved ones about the importance of long-term care and making plans today for future needs," said TDCI Commissioner Carter Lawrence. "I encourage Tennesseans who might have questions about their insurance coverage to contact my team today for assistance or to file a complaint."

TDCI recommends meeting with your licensed Tennessee insurance producer to discuss the long-term care insurance options available to consumers. To verify that an individual or company is properly licensed to sell insurance products in Tennessee, visit our website and search the National Association of Insurance Commissioners' database.

To help consumers, here are the long-term care insurance pros and cons:

Standalone long-term care insurance pros

Your long-term care expenses may be covered up to your coverage cap.

This insurance may cover costs associated with aging in place.

You may be able to add riders for inflation protection, spousal coverage, and more

Standalone long-term care insurance cons

You may not need long-term care.

The types of care covered may be limited, so it's important to ask questions about the types of coverage available.

Premiums can increase over time.