New York Sees Record Payouts in Long-Term Care Insurance as Aging Population Soars

New York is witnessing unprecedented payouts in Long-Term Care Insurance, driven by the rapid increase in its aging population. This surge highlights the growing need for comprehensive care solutions for older people in the state.

Recommend This Page
New York Sees Record Payouts in Long-Term Care Insurance as Aging Population Soars
6 Min Read March 13th, 2024

Long-Term Care Insurance is being used more than ever before across the United States. This increase goes hand in hand with the demographic changes in the country. In New York, the population is aging quickly. With more older people in New York and improvements in medical science, New Yorkers have received a record-breaking amount of Long-Term Care Insurance benefits, almost reaching $1.5 billion in the last year reported.

According to 2023 U.S. Census Bureau data, over half, 54.3%, of the state's residents, roughly 10.8 million people, are now aged 50 or older. This trend is particularly pronounced with seniors, with 3.5 million New Yorkers exceeding 65 years old, constituting 17.6% of the state's population. This figure surpasses the national average of 16.0%.

Comparing current data to 2000 reveals a significant shift. Back then, only 36.8% of New Yorkers were 50 or older. This means the senior population has grown by a substantial 17.5 percentage points in just 23 years.

The Center for an Urban Future (CUF) reinforces this observation. Their 2023 report "Keeping Pace with an Aging New York State" details a staggering 31% increase in the number of New Yorkers aged 65 and over between 2011 and 2021, while the younger population witnessed a 2.6% decline.

Several factors contribute to this trend: the aging Baby Boomer generation reaching retirement, a longer lifespan due to medical advancements, and a decrease in birth rates. This demographic shift has broad implications, with rapidly increasing numbers of New Yorkers needing long-term care services. The increasing demand, labor shortages, and higher labor costs are resulting in skyrocketing costs of long-term care, which is expected to continue in the decades ahead.

Billion Plus in LTC Insurance Paid Last Reporting Year

According to the most recent AHIP Long-Term Care Insurance Coverage report (2021), New York families received $1,497,160,000 in benefits from traditional Long-Term Care Insurance. This financial support helped New York families afford quality long-term care services, such as in-home care. It's important to note that this figure doesn't account for benefits paid from hybrid and other types of long-term care policies.

These numbers would be substantially higher today as national numbers for 2023 reported the top insurance companies paid over $14.1 billion in Long-Term Care Insurance benefits. There seems to be little doubt that LTC Insurance has become a vital part of health services in the U.S. and, of course, in New York.

Since the Long-Term Care Insurance industry began, New Yorkers have benefited from a total of $13,718,233,000 in payouts, which have funded all types of long-term care services (home care, adult day care, assisted living, memory care, and nursing home.)

New York families are experiencing firsthand the advantages of LTC Insurance, which protects their income and assets and guarantees access to their preferred quality care while reducing the stress and burdens that would typically impact New Yorkers and their families.

Costs of Long-Term Care Increase in New York

Given that traditional health insurance and Medicare cover only short-term skilled care, the financial burden of long-term care services on individuals is substantial.

Without the protection of Long-Term Care Insurance, which pays for care in both home and facility settings, New Yorkers would face considerable financial difficulties, not to mention the physical, emotional, and financial burdens that their loved ones would face trying to be caregivers or manage professional care services.

The LTC NEWS Cost of Care Calculator for New York reveals these costs and how they are increasing year after year. The average cost of in-home care in the state (based on a 44-hour week) is $5,483 monthly. Base assisted living costs are similar, but surcharges will increase the cost up to $2000 on top of the base cost. However, nursing home costs in New York average $13,882 per month for a private room.

The New York state average is $5,644 per month, but long-term care costs vary depending on where you live in New York. Compare these median statewide average home care costs to these metro areas in New York:

Location Monthly Cost
Albany $5,483
Buffalo $5,289
Ithaca $5,992
New York City $5,602
Rochester $5,739
Syracuse $5,808

The cost of long-term care services increases yearly. For example, in 2044, the LTC NEWS Cost of Care Calculator suggests that the average median statewide cost of in-home care will be $9,342 monthly. The increase over the 20 years is 65.52%, or 3.28% each year.

New York LTC Partnership Program

The New York State Long-Term Care Insurance Partnership program offers a unique approach to planning for potential future long-term care needs. Authorized under federal law, the program allows those who hold Partnership LTC Insurance policies to shelter part of their estate based on the total amount of benefits paid by the policy and still qualify for Medicaid. Here's a breakdown of the program's features:

  • Partnership with Private Insurance: This program combines private Long-Term Care Insurance policies with Medicaid benefits. Individuals can purchase qualified LTC Insurance plans that meet specific standards.
  • Asset Protection: A key advantage of the program lies in its potential to protect a portion of an individual's assets when applying for Medicaid to cover long-term care costs based on the total benefits paid by the LTC policy.
  • Dollar-for-Dollar Asset Disregard: Policyholders who exhaust their private Long-Term Care Insurance benefits can apply for Medicaid without exhausting a majority of their assets. 

This feature allows individuals to preserve a larger portion of their savings for themselves or their families while still qualifying for Medicaid assistance if needed. In other words, a policyholder would not have to have little or no income and assets to be eligible for Medicaid long-term care benefits. 

As of January 1, 2021, no insurance companies currently offer new policy purchases of partnership-qualified products in New York State. New York currently requires partnership-certified policies with 5% compound inflation protection. The rules in New York make policies unaffordable, so companies have withdrawn them until the state reviews its rules to make them similar to those of other states. 

There are no new partnership policies available for purchase at this time. Traditional Long-Term Care Insurance and hybrid policies are available for purchase, but they do not include the additional dollar-for-dollar asset protection. Those with a partnership-certified LTC insurance policy still enjoy the additional asset protection these policies offer. 

Should New Yorkers Buy LTC Insurance? If So, When?

Yes, absolutely. New Yorkers who have income and savings to protect should consider obtaining an LTC policy as part of their retirement plan. If you have limited income and savings, buying an LTC policy would usually not be recommended as you could easily qualify for New York's Medicaid long-term care benefits.

LTC Insurance provides guaranteed tax-free benefits to pay for your choice of quality care services. The policyholder gets to decide the benefits of their policy. Premiums are based on several factors, including age, health, gender, and marital status. The policy benefits are custom-designed. A qualified LTC Insurance specialist can help design a plan and shop the available insurance companies to find the most affordable options based on your age and health. 

Most people obtain coverage in their 40s and 50s when premiums are very affordable; however, depending on their health, affordable options can be found in their 60s and beyond. 

Tax Incentives for LTC Insurance in New York

There is a tax credit for 20% of Long-Term Care Insurance premiums paid for a qualified policy approved by the state superintendent of insurance. Persons paying the premium for others are also eligible for the tax credit (as well as their own policy, if applicable) regardless of others' tax dependency status; i.e., the adult child could pay a premium for parents and get a tax credit even if parents are not dependents. A tax credit is not refundable; unused credits may be carried forward.

Nonresident taxpayers and part-year resident taxpayers are subject to the limitations for resident taxpayers. The credit is computed by multiplying the credit amount determined for a resident by the nonresident's New York source fraction as defined in New York Tax Law section 601(e)(3).

Is Your Family Ready for What's Coming?

All New York families will face aging, so it's important to get ready now to protect your money and make things easier for your family.

If you wait too long to talk about long-term care or don't look into affordable Long-Term Care Insurance, it could end up costing you and your family a lot more than just money.

Adding Long-Term Care Insurance to your retirement plans is a great way to feel more at ease about the future. It helps keep your retirement savings, like your 401k and other investments, safe. Plus, it means your family can be there for love and support, not just caregivers.

Recommend This Page

About the Author

An LTC News author focusing on long-term care and aging.

LTC News Contributor James Kelly

James Kelly

Contributor since August 21st, 2017

Editor's Note

Getting older doesn't mean giving up your way of life. Being ready for aging and the need for long-term care can improve your peace of mind and the quality of your life in the years ahead. A Long-Term Care policy protects your income, assets, and lifestyle. Without it, the rising costs of long-term care services, whether at home, in assisted living, or in nursing homes, could seriously threaten your financial well-being.

As long-term care costs continue to soar, the burden of expensive care expenses not paid for by health insurance or Medicare can significantly impact your income and assets and place a substantial burden on your family.

Health insurance and Medicare only pay for short-term skilled care. If you have little or no income and assets, Medicaid will pay for long-term care services. Otherwise, unless you have an LTC policy, you will pay for care from your income and assets, or your loved ones will become caregivers. 

Caregiving is hard on loved ones, and it changes their lives completely. 

There is a better way to plan.

LTC Insurance ensures you have guaranteed tax-free funds to pay for high-quality care without depleting your savings, preserving your retirement lifestyle and legacy while relieving your family's emotional and financial stress.

The ideal time to add long-term care coverage is when you are in your 40s or 50s, but depending on your health, affordable options are available in your 60s and beyond. 

Find a Qualified LTC Insurance Specialist

An LTC Insurance specialist representing the leading insurance brands providing long-term care solutions will possess a deep understanding of the products, pricing, underwriting, and features and benefits offered by these products.

Just as important, an LTC specialist understands the federal and state regulations and tax benefits these products can offer, including the Long-Term Care Insurance Partnership Program.

The LTC specialist will show you accurate quotes from all the top companies, allowing you to shop easily and conveniently. 

Navigating Long-Term Care: Simplify Your Search with the LTC NEWS Caregiver Directory

Finding quality long-term care services for a loved one can be an overwhelming challenge for many families. The search for reliable caregivers and reputable long-term care facilities is fraught with complexities, from determining the specific type of care needed to understand the various offerings and standards of facilities. 

It's a process that requires significant time and effort, often under the stress of an urgent need. This complexity is compounded by the desire to find a solution that not only meets the health care needs but also fits within a family's budget and geographical preferences.

The LTC NEWS Caregiver Directory simplifies this daunting task by providing a comprehensive and accessible resource with over 80,000 listings of caregivers and long-term care facilities. This free service is designed to make the search process as easy as possible. It allows families to filter through options, learn about the services provided, review ratings, and narrow down their choices to those that best meet their requirements. 

By offering detailed information and transparent evaluations, the directory helps families make informed decisions, easing the burden of finding quality care. Whether you're looking for in-home care, an assisted living facility, or specialized care for conditions like dementia, the LTC NEWS Caregiver Directory is a valuable tool in navigating the complex landscape of long-term care services.

If you're a care provider, you can claim your free listing or upgrade to enhance visibility through the LTC News Directory Business Portal.  

Having a Long-Term Care Insurance policy unlocks access to quality care. LTC NEWS collaborates with Amada Senior Care, a leading in-home health care provider, to help you efficiently process claims from any Long-Term Care Insurance policy. This means you and your loved ones can utilize the benefits of your LTC policy to secure quality care without any additional cost or obligation for this service. 

Enjoy the comfort and assurance of knowing that you have reliable care options available when they're most needed, thanks to the seamless claim filing support from LTC NEWS - Filing a Long-Term Care Insurance Claim.

Enhance Your Website and Business with LTC NEWS Solutions

Elevate your brand and connect with your audience through a variety of marketing and advertising strategies offered by LTC NEWS. Whether you're interested in sponsored content, display advertising, or other innovative solutions, LTC NEWS will help increase your online visibility, drive more traffic to your site, enhance your SEO, and build stronger relationships with prospective customers. Discover how LTC NEWS can take your business to the next level.

Unlock the Power of Sponsored Content on LTC NEWS

  • Drive Website Traffic: Gain visibility among a large audience as your sponsored content articles are prominently featured on LTC NEWS's homepage and other high-traffic areas of the website.
  • Increase Brand Awareness: Position your brand as a thought leader in your industry by engaging and educating readers with informative sponsored content articles, thereby enhancing brand visibility and credibility.
  • Connect with Target Audience: Reach potential customers who are actively interested in long-term care by leveraging LTC NEWS's dedicated audience, ensuring that your message resonates with those seeking relevant solutions.
  • Improve SEO Performance: Boost your website's search engine rankings with sponsored content articles optimized for search engines, enhancing your online visibility and driving organic traffic to your website.

Sponsored content on LTC NEWS is a powerful marketing tool that can help you boost website traffic, SEO, brand recognition, and audience engagement. Traditional advertising is also available to keep you in front of potential customers. 

Learn more about how LTC NEWS can help market your business, drive traffic, and improve SEO - Advertise With Us | LTC News.

LTC NEWS: Share Your News with Us

LTC NEWS is a leading website for news and information about aging, caregiving, health, lifestyle, long-term care, and retirement planning. We are always looking for new stories to share with our readers. 

If your group, organization, business, or political committee has news to share, we encourage you to submit a press release to us.

You can submit your press release -

LTC News Trusted & Verified

Work With a Trusted Specialist

Get Accurate Long-Term Care Insurance Quotes

  • Has substantial experience in Long-Term Care Insurance
  • Strong understanding of underwriting, policy design, and claims experience
  • Represents all or most of all the leading insurance companies
man and woman sitting at desk
  • Latest

  • Oldest

  • Homecare

  • Health

  • Government

  • Care Facilities

  • Pets

  • People

  • Lifestyle

  • Insurance

No Results

Step 1 of 4

Find a Specialist

Get Started Today

Trusted & Verified Specialists

Work with a trusted Long-Term Care Insurance Specialist Today

  • Has substantial experience in Long-Term Care Insurance
  • A strong understanding of underwriting, policy design, and claims experience
  • Represents all or most of all the leading insurance companies

LTC News Trusted & Verified

Compare Insurers