Who Buys Long Term Care Insurance in CA
Over half a million Californians have purchased long term care insurance, more than any other state in the nation, according to a report.
The study from the American Association for Long Term Care Insurance's Consumer Information Center identified the 10 states with the largest number of policies placed. California ranked atop the list with 550,000 individuals owning protection, an increase of almost 40,000 over the prior reporting year.
Long term care insurance is still a relatively new form of coverage and this is the first generation of Americans buying protection industry experts note. The need for long-term care arises as a results of accidents or aging. Care for these types of services are not covered by traditional health insurance and Medicare covers little of the cost. Nationally, some 8.25 million Americans now own the insurance protection purchased on an individual basis or through their employer.
Florida ranked second in the report with some 447,000 policyholders, an increase of 67,000 over the prior year. New York ranked third with 408,000, an increase of 21,000. The long term care insurance industry reports that some 400,000 new policies are purchased every year.
Rounding out the top-10 states with consumers owning long term care insurance were: Texas (4), Illinois (5), Pennsylvania (6), Ohio (7), Missouri (8), New Jersey (9) and North Carolina (10).
To encourage the purchase of long term care insurance protection the federal government has increased tax deductibility limits for coverage and a number of states now offer tax credits or deductions. In addition, a number of states have instituted LTC Partnership programs. States provide added protections to those purchasing affordable Partnership-approved policies.
Written by Jesse Slome from the American Association for Long Term Care Insurance