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Chapter 10. Long-Term Care > Future Cost of Long-Term Care

Future Cost of Long-Term Care

Studies predict the costs of nursing homes will approach $200,000 per year by the year 2030 when the last of the baby boomers will be reaching age sixty-five. Premiums for new long-term care insurance policies are soaring as insurers confront recent slumping sales, rising claims and weak investment revenue, according to a cbsmarketwatch.com investigation. Substantial rate hikes are expected as companies learn that baby boomers are not particularly interested in rushing out to buy coverage. In addition, relatively few people who buy these policies stop paying the premiums and let the policies lapse before they would be eligible for benefit payments, which has caused the insurance companies to have to pay more claims than their actuaries had expected. Also, unanticipated by the insurance companies when they first created these policies was the number of single people without a spouse to care for them who would need longer nursing home stays.


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