Ohio Sees Increased Use of Long-Term Care Insurance Benefits

Long-Term Care Insurance is experiencing unprecedented utilization across the United States, with Ohioans receiving record LTC Insurance benefits. This trend aligns with the demographic shift in Ohio, where the population is aging at a significant rate.

According to the U.S. Census Bureau, Ohio boasts a population of 11,785,935, with 2,768,242 individuals, approximately 23.5%, aged 50 and over. This pattern isn't unique to Ohio but reflects a broader national trend. Data from the Population Reference Bureau indicates that by 2030, one in five Americans will be 65 years or older, a proportion expected to grow to one in four by 2060. 

This population shift underscores a significant increase in the population of older Americans in the years to come, highlighting the growing importance of addressing the needs and challenges of an aging society.

Millions Paid in LTC Benefits in Ohio

In the last reporting year (2021), according to the AHIP Long-Term Care Insurance Coverage report, $445,532,200 in traditional Long-Term Care Insurance benefits were paid to Ohio families, helping them access quality long-term care services, including in-home care. That amount does not include hybrid and other types of policies paying long-term care benefits. 

The amount of benefits paid by LTC Insurance continues to grow. In 2023, the top insurance companies paid over $14.1 billion in Long-Term Care Insurance benefits across the United States. This substantial amount emphasizes the concrete financial assistance that Long-Term Care Insurance offers its policyholders while pointing to the increasing need for long-term care services.

Since the inception of the Long-Term Care Insurance industry, Ohioans have received $5,410,658,000 in benefits, showcasing the historical impact of LTC Insurance in the state. Despite skepticism from some about the value of these policies and their benefit payouts, Ohio families are witnessing firsthand how these benefits safeguard income and assets, ensure access to quality care of choice, and alleviate the stress and burdens that would otherwise fall on Ohio households.

Long-Term Care Costs Rising in Ohio

Since traditional health insurance, including Medicare, pays for short-term skilled care only, the financial impact of long-term care services is immense. The growing demand for care, driven by an aging population and advances in medical science that extend lifespan, is increasing the cost of care services nationwide, including in Ohio.

The combination of increased demand for care, labor shortages, escalating labor costs, and inflation is causing long-term care costs to skyrocket. Without Long-Term Care Insurance, which covers these services in both home and facility settings, Ohioans would experience significant financial strain. 

• What is Long-Term Care Insurance? What Does It Cover?

Many would have to rely on adult children, often daughters or daughters-in-law, to step in as caregivers, placing immense pressure on family caregivers trying to balance their careers, spouses, children, and caregiving responsibilities.

LTC Costs Vary Throughout Ohio

The LTC NEWS Cost of Care Calculator for Ohio shows the average cost of in-home care (based on a 44-hour week) is $4,703 monthly. By 2044, the cost of in-home care is expected to be $8,013 monthly.

However, metro areas will cost Ohioans more. Compare in-home costs to the Ohio statewide average:

• Ohio Average: $4703 per month
• Cincinnati: $5028 per month
• Cleveland: $5029 per month
• Columbus: $5017 per month
• Dayton: $5265 per month
• Toledo: $4,881 per month

Assisted living, memory care, and nursing homes will all cost more than in-home care, although 24/7 in-home care can be more costly than assisted living.

Ohio LTC Insurance Partnership Program: A Closer Look

The Ohio Long-Term Care Insurance Partnership Program, also known as LTC4Me, is a collaborative effort between the state of Ohio and private insurance companies to encourage Ohioans to plan for their long-term care needs. 

Authorized under federal law, here's a breakdown of its key aspects:

• Collaboration and Benefits: Established in 2002, the program is a partnership between the Ohio Department of Insurance and private insurers offering "partnership qualified" Long-Term Care Insurance policies. These policies provide coverage for long-term care services like assisted living, nursing homes, or home care while also offering a unique benefit: Medicaid asset protection.

• Medicaid Asset Protection: Otherwise known as "asset disregard," this dollar-for-dollar asset protection is not available with standard LTC Insurance policies in Ohio, helping individuals preserve their assets if they need to qualify for Medicaid to cover long-term care costs in the event they exhaust their LTC policy benefits. Typically, Medicaid eligibility involves stringent asset limitations, forcing individuals to deplete their savings to qualify for assistance.

• How it Works: When individuals purchase a partnership-qualified LTC policy and use it to pay for qualifying long-term care services, they are allowed to keep a greater portion of their assets equal to the amount of policy benefits that were paid out if they must apply for Medicaid later. This financial protection can provide peace of mind, knowing that no matter what happens, they will never lose everything they have worked hard for their entire life.

What is the Partnership Program in Long-Term Care Insurance?

When Should Ohioans Buy Long-Term Care Insurance?

Incorporating Long-Term Care Insurance into your retirement strategy is becoming essential. While many opt for coverage in their 40s or 50s, policies are accessible from age 21 and potentially up to the 80s, health permitting.

Your health primarily determines your eligibility for an LTC policy. Each insurance company follows its own underwriting guidelines, which can vary significantly.

• What is Underwriting in Long-Term Care Insurance?

Seeking advice from a seasoned Long-Term Care Insurance specialist is vital. Such a professional, representing leading insurers, can navigate you through the array of policy choices to find the one that aligns with your situation.

• What is A Long-Term Care Insurance Specialist? How Can They Help You? 

Your age and health at the time of application partly influence your premiums. Generally, the younger and healthier you are, the more affordable the LTC policy will be.

• Long-Term Care Insurance Cost: Factors, Considerations and Price Ranges

Finding Quality Long-Term Care Services in Ohio

Ensuring you and your loved ones receive the quality long-term care you need is paramount. Long-Term Care Insurance opens the door to high-quality care options. However, selecting the right caregiver or facility is crucial for enhancing the quality of life for those requiring long-term care, regardless of whether you have a policy.

The LTC NEWS Caregiver Directory is here to help you locate top-notch care across Ohio or anywhere in the U.S. With the ability to search by service type and location, you can refine your choices by exploring service descriptions and ratings. Best of all, this extensive resource is entirely free to use.

• Long-Term Care Directory | Find Care Near You | LTC News

Note, if you are a long-term care service provider in Ohio (or anywhere in the U.S.), you can claim your free listing and even upgrade your listing - LTC News Directory Business Portal.

If you have an LTC policy, LTC NEWS is here to assist Ohioans and their families with the claims process for any Long-Term Care Insurance policy. In collaboration with Amada Senior Care, a nationally renowned in-home health care agency, we make the claim process easier so your loved one receives the policy benefits as soon as possible. 

It's important to note that this service is provided at no cost or obligation when filing a Long-Term Care Insurance claim - Filing a Long-Term Care Insurance Claim.

Is Your Family Ready for the Future?

For every Ohio family, aging is an inevitable journey, underscoring the importance of being prepared to protect your financial well-being and ease the potential stress on your loved ones.

Putting off discussions about long-term care or neglecting to investigate affordable LTC Insurance options can result in escalating costs and strain on your family.

Adding an LTC Insurance policy to your retirement plan will offer invaluable peace of mind to you and your loved ones by safeguarding against the financial uncertainties of aging. Your 401k will be protected, in addition to other savings and investments, and your loved ones will have the time to be family instead of becoming caregivers.