Facts about California Long Term Care Insurance (LTCI)

  • In 2020, nursing home care cost averaged about $300 a day or about $109,500 a year in California according to the Genworth Cost of Care Survey.
  • At least 3 in 4 Americans are either uninsured or underinsured for long term care.
  • According to US Government statistics, over half of Americans who reach age 65 will need long term care for more than a few months at some point. For a couple, the percentage rises to 77% that at least one spouse will need care for more than a few months at some point.
  • Among people age 65 and older, 30% have three or more chronic diseases.
  • Nearly 79% of people who need long term care live at home or in community settings rather than in institutions.
  • The main causes of long term care are Alzheimer’s, stroke, circulatory disease, injury, and cancer.
  • Of those who enter a nursing home, 44% will stay at least one year and 12% will remain longer than five years.
  • Long term care insurance reduces a person’s chances by 66% of having to spend down his or her savings to the point of impoverishment to qualify for Medicaid assistance.
  • The average cost for a home health aide or homemaker in San Francisco, Los Angeles, and San Diego is at least $25 per hour.
  • The long term care insurance industry is proud of its record of paying nearly 97% of all claims submitted.
  • 66% of long term care insurance claims are paid to women.
  • If you meet Medicare requirements, Medicare will only pay the full cost of skilled nursing home care up to the first twenty days of a covered stay and then only a small part of the bill for the next eighty days.

In general, the annual premium for long term care insurance rises by at least 30% from age 50 to age 60 in a California policy and by more than 40% from age 55 to age 65.