Many consumers may soon discover that they will be paying more for their coverage.
Thousands of consumers are beginning to discover that there are considerable increases to long term care insurance rates that are being implemented at the moment and that are scheduled for the near future.
Many are afraid that this may make the coverage cost prohibitive and are afraid they may have to cancel.
The long term care insurance industry has already been facing challenges in terms of its costs and in keeping its policyholders. Now, even many of the firm believers in this form of coverage are needing to take a second look at their budgets in order to be sure that they can afford the higher premiums every month.
Long term care insurance policies go above and beyond health coverage, to pay for nursing homes and in home assistance.
Some long term care insurance policyholders have seen premiums that have spiked as much as 44 percent over the last few months. This has been a common experience among consumers in Florida, where the state’s Office of Insurance Regulation has given its approval to the rates increases.
More than twenty different long term care insurance companies have received permission to increase their rates over the last three years, with an average premiums hike of 14 percent. The majority of those insurers justify the need for an increase with the ever rising costs of healthcare. Those expenses have been skyrocketing at a far greater rate than had been expected by the industry.
Contrary to the situation with other forms of coverage, state regulators aren’t able to cap increases when the long term care insurance company is able to prove that it will experience future losses without the proposed rate hikes. Unfortunately, this has meant that the number of people who are able to afford the coverage could continue to decline. This will only place greater pressure on a sector that is already facing significant struggles with its current models and price structures.
The long term care insurance industry has faced criticism over the last few years due to rising costs, and it is greatly expected that notable changes are in the sector’s future.