Excerpt from: Daily Finance (click for full article)
With nearly 70 percent of Americans aged 65 or older expected to need
long-term medical care at some point, millions of Americans have turned
to long-term-care insurance to help them cover its high costs.
But rate hikes on long-term-care premiums are coming, meaning many of
those who prudently planned for their long-term-care needs may not be
able to afford to keep their coverage.
The largest public pension fund in the country, the California Public
Employees' Pension Fund, runs one of the biggest long-term-care benefit
programs in the country. But CalPERS now expects it will need to raise
premiums by 85 percent within the next two years. Private insurance
companies are seeing many of the same issues, with CNA Financial (CNA) and Manulife Financial (MFC)
both having sought or gotten approval from the California Insurance
Department to raise their long-term-care premiums by 40 percent to 45
percent.
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