Letter To The Editor:
Why Consumers Don’t Buy LTC Insurance

Stephen A. Moses writes: In response to last month’s article, LTC Insurers Face Biggest Issue: Consumer Apathy, it is no puzzle why few consumers buy long term care insurance.

The vast majority of all professional LTC services (home care and nursing home services) are funded by Medicare (which has no means test) or Medicaid (which has no limit on income for people with high health or LTC costs and no limit on assets held in exempt form).

What part of "People won't buy insurance for a financial risk that government already covers" is unclear? Medicaid eligibility reform designed to target that program's scarce resources to people truly in need is the key to saving the safety net and unleashing the LTC insurance market. 

In the meantime, sell LTC insurance's real benefit: access to quality care in the private marketplace at the most appropriate level. Mention asset protection as frosting on the cake. 

Medicaid planners give asset protection away after the insurable event occurs for less than the cost of an annual LTC insurance premium for a 75-year-old. And if you think this argument falters because Medicaid LTC is undesirable, think again. Most Americans never reach the level of awareness about LTC to think about such things. That's why education and tax incentives have only marginal effect. Nobody cares. Why? Just to close the circle:  Because government has been giving away LTC for 40 years.

Stephen A. Moses, President
Center for Long-Term Care Reform Inc.
Seattle, Wash.
smoses@centerltc.com.