The American Association for Long-Term Care Insurance (AALTCI) reported that U.S. long-term care insurers paid a record-breaking $14.1 billion in claims to policyholders in 2023. This remarkable figure marks an increase from the $11.6 billion paid out in 2020, showcasing a growing trend in the sector.
Jesse Slome, the director of AALTCI, highlighted that over 350,000 individuals received claim payments last year, indicating a steady rise in the number of beneficiaries. This increase is attributed to the aging population and the escalating need for long-term care services. Slome noted that the rise in benefit payouts was an expected outcome, considered by insurers when pricing these policies.
In 2023, approximately 353,000 policyholders received benefits, a slight increase from 2022’s 345,000 claimants. This growth trend was also observed in 2020, with 325,000 policyholders receiving benefits. The reported data specifically pertains to policyholders with traditional long-term care insurance, which provides coverage for various care settings, including in-home care, assisted living facilities, and skilled nursing homes.
The AALTCI data, corroborated with industry actuaries, reflects the historical average annual growth rates over the last decade, based on companies’ year-end reporting data.
This significant increase in claims payments underscores the vital role long-term care insurance plays in supporting the aging population, particularly as they transition into needing more comprehensive care services.