Payments for in-home care now dominate long-term care insurance policy claims, according to the American Association for Long-Term Care Insurance (AALTCI).

The AALTCI found in an analysis that more than two-thirds (70%) of 2019 long-term care insurance policy claimants received initial benefit payments for care at home. That represents an increase of 18% from the association’s 2014 claims data. 

The association released the findings in conjunction with Long-Term Care Awareness Month, which runs through November.

In contrast to claims for nursing home care, AALTCI said fewer than one-in-10 new claims in 2019 began with care provided in a nursing home. Also, around 18% commenced with care in an assisted living setting.

The association noted that in 2019 the nation's long-term care insurance companies paid $11 billion in benefits to some 310,000 individuals. It explained that while sales of traditional long-term-claims insurance policies have declined in recent years, claims paid have increased 35% from $8.1 billion paid in 2015.

Jesse Slome, director of the AALTCI, said consumers still mistakenly associate long-term care insurance primarily with skilled nursing home care. “Agents really should explain that this is nursing home avoidance protection. Funds to help cover costs associated with care services provided in your own home where you’d prefer to be,” he said in a statement.

Covid-19 has made individuals increasingly desirous of the ability to remain at home and more insurance professionals are focusing on the home care benefits available, Slome added.

For less than $100 a month, a 57-year-old male can purchase a policy that pays $5,100 monthly for home care services when he reaches age 85, Slome expained.

“If home care is then needed for two years, the policy would pay out over $122,000 in total benefits,” he said, adding that such a policy would also provide benefits should qualifying care be received in either an assisted living or skilled nursing home facility.

Long-term health care is generally not covered by medical insurance, by Medicare supplement plans or group employer insurance. For seniors on Medicare, the long-term care benefits are quite limited.

Founded in 1998 as a national independent organization which serves those who offer long-term care insurance and other planning solutions, The American Association for Long-Term Care Insurance advocates for the importance of protecting against the real risk of needing long-term care.